Saudi Consumer Spending Holds Steady as Back-to-School Costs Surge

Saudi Arabia’s consumer spending remained broadly stable at around $3.8 billion in the week ending August 22, even as education-related purchases surged ahead of the new academic year, official data showed.

Point-of-sale transactions across the Kingdom reached SR14.17 billion ($3.78 billion), a marginal 0.1% decline from the previous week. The number of transactions fell 4.9% to 237.35 million.

The overall stability in spending came despite a sharp increase in education-related purchases. Transactions in the sector jumped 133.9% week on week to SR1.04 billion, while the number of education-related transactions increased 55.7%.

Economist Talat Hafiz said the rise was expected because of the seasonal impact of the back-to-school period. Families typically increase spending on school supplies, clothing, electronic devices, transportation and other services at this time of year.

Hafiz said the increase could provide a short-term boost to consumer activity and retail businesses. However, he cautioned against viewing the jump as evidence of a permanent acceleration in household demand because education spending is strongly seasonal and the comparison is partly affected by a low base.

He said the key factor would be whether point-of-sale growth remains strong and widespread after the back-to-school period. Continued household spending and consumer confidence could support other parts of the non-oil economy, he added.

Food and restaurant spending declines

According to data from the Saudi Central Bank, food and beverage spending reached SR2.11 billion, down 4.1% from the previous week.

Restaurants and cafes recorded SR1.67 billion in transactions, an 8.6% decline, while apparel, clothing and accessories spending rose 1.7% to SR1.26 billion.

Transportation-related purchases totaled SR1.04 billion, while spending at gas stations reached SR960.41 million.

Healthcare transactions stood at SR798.52 million, while professional services generated SR800.66 million.

Books and stationery recorded one of the stronger increases outside education, with spending rising 30.2% to SR155.18 million.

Riyadh leads regional spending

Riyadh remained the largest market for point-of-sale transactions, with spending reaching SR5.13 billion, up 6% from the previous week. The number of transactions in the capital declined 2.3% to 77.93 million.

Jeddah recorded SR1.80 billion in spending, down 4.4%, while Dammam saw transactions rise 9.3% to SR712.78 million.

Makkah recorded SR534.04 million and Madinah SR519.31 million in spending.

Alkhobar posted SR426.43 million, an 11.5% increase, while Buraidah reached SR345.52 million. Abha recorded SR225.43 million, with spending falling 14.4%.

The latest figures show that the start of the academic year has significantly reshaped spending patterns, even though overall consumer activity across Saudi Arabia remained almost unchanged.