Saudi Consumer Spending Rebounds 30.8% to $4.1 Billion as Education Outlays Surge

Consumer spending in Saudi Arabia rose sharply in the week ending October 31, reaching more than $4 billion after two consecutive weeks of decline, with education-related transactions recording the largest increase, according to official data.

The value of point-of-sale (POS) transactions reached SR15.41 billion ($4.1 billion), an increase of 30.8% from the previous week, while the number of transactions climbed 15.6% to 264.93 million, data from the Saudi Central Bank (SAMA) showed.

The rebound followed declines of 6.8% in the week ending October 17 and 6.5% in the week ending October 24.

Education spending recorded the strongest sectoral growth, rising 81.5% week on week to SR123.45 million. The number of transactions in the category increased by 29.3%. Telecommunications spending also climbed sharply, gaining 60.7% to SR302 million.

Economist Talat Hafiz told Arab News that the increase was largely linked to salary payments, which typically encourage consumers to resume purchases and replenish household supplies.

He said some spending may also have been postponed during the previous two weeks and completed once wages were received.

Food and beverage purchases reached SR2.8 billion, up 39.6% from the previous week. Restaurants and cafes recorded transactions worth SR1.9 billion, an increase of 21%, while spending on apparel, clothing and accessories rose 47.4% to SR1.29 billion.

Transportation-related POS transactions increased 32% to SR1.1 billion, while spending at petrol stations reached SR1.11 billion.

Healthcare transactions totalled SR961.19 million, and professional and business services recorded spending of SR745.24 million. Jewellery purchases also increased significantly, rising 44.9% to SR619.65 million.

Hotels recorded the smallest increase among the major sectors, with spending growing 7.3% to SR237.84 million.

Riyadh leads city spending

Spending increased across all cities covered by SAMA’s report, with Riyadh accounting for the largest share of transactions.

POS spending in the capital reached SR5.33 billion, up 26.5% week on week. The number of transactions rose 13.5% to 88.08 million.

Jeddah recorded spending of SR1.97 billion, an increase of 23.2%, with 29.21 million transactions. Dammam followed with SR747.86 million, up 24.3%.

Madinah recorded POS spending of SR611.92 million, while Makkah registered SR586.90 million.

Hafiz said the increase across different sectors and cities suggested that the rebound was mainly related to the timing of salary payments rather than growth concentrated in a particular category.

The latest figures indicate a broad recovery in retail payment activity following the two weeks of declining consumer expenditure.