Traditional craft in Saudi Arabia

I don't recall prices being low but I would suggest checking
Dome  -https://goo.gl/maps/ECXRd1zYm3G2
It's on one of the floors (Not the ground floor, if remember correctly I think it was the floor above Emax)
Thing is, it's been over a year since I went there and business didn't seem too lively... hopefully, it's still there.

Usually they sell it to foreigners especially Westerners a little bit higher.

I've observed that when I bought the same item a couple bought ahead of us (SR100 lesser) but it's from a souvenir shop in Riyadh past the bridge near Al Batha.

I think you should consider ( Bab Makkah Souk, old Jeddah) city center