Saudi Arabia’s Point-of-Sale Transactions Surge 17.8% as Consumer Spending Strengthens

Consumer spending in Saudi Arabia accelerated sharply at the end of August, with point-of-sale (POS) transactions rising 17.8 percent to SR15.79 billion ($4.21 billion), the largest weekly increase in three weeks, according to official data.

Figures from the Saudi Central Bank showed the number of transactions climbed 11.2 percent to 237 million in the week ending August 30. The growth highlights resilient consumer confidence and the Kingdom’s continued shift toward digital payments, a cornerstone of the Vision 2030 reform agenda.

The food and beverage sector remained the biggest driver of spending, posting a 29.4 percent increase to SR2.30 billion. Restaurants and cafes also saw a 9.9 percent rise in transactions, reaching SR1.70 billion.

Spending was strong across most categories, with apparel, clothing, and accessories up 16.3 percent at SR1.18 billion, transportation growing 16.9 percent to SR1.13 billion, and professional and business services advancing 18.8 percent to SR1.10 billion. Education-related transactions also totaled SR1.10 billion, while fuel purchases at gas stations reached SR1.08 billion.

In contrast, hotels recorded a 6.5 percent decline in spending, falling to SR254 million, suggesting a slight cooling in hospitality demand.

The data aligns with the Kingdom’s broader economic indicators, including the Purchasing Managers’ Index, which shows Saudi Arabia’s non-oil private sector firmly in expansion. Economists say the steady rise in POS activity underscores the success of efforts to diversify the economy away from oil dependency while supporting digital transformation.

Riyadh continued to dominate overall spending, with POS transactions in the capital rising 11.7 percent to SR5.47 billion. Jeddah recorded the fastest growth among major cities, jumping 24.1 percent to SR2.19 billion. Dammam ranked third, with spending climbing 14.7 percent to SR771.7 million.

Other cities also reported significant gains: Madinah spending rose 27.1 percent to SR624.3 million, Makkah reached SR610.99 million, Al-Khobar recorded SR441.49 million, Buraidah saw SR378.78 million, and Abha posted SR221.03 million.

Analysts note that the surge reflects not only higher disposable incomes and population growth but also widespread adoption of digital payment platforms, which have transformed how Saudis shop, dine, and travel. The growing use of contactless cards, mobile wallets, and e-commerce platforms is expected to further accelerate the trend.

Despite global economic headwinds, consumer confidence in the Kingdom remains resilient. Economists say this steady household expenditure provides vital support to Saudi Arabia’s broader transformation plan, helping drive growth in non-oil sectors and reinforcing long-term diversification goals under Vision 2030.