Saudi Consumer Spending Surges in April as E-Commerce and Retail Activity Accelerate

Consumer spending in Saudi Arabia posted its strongest monthly growth in nearly three years during April, supported by a sharp rise in e-commerce activity and stronger spending across retail and entertainment sectors.

Total consumer spending climbed about 17.5 percent year on year to SR133.9 billion ($35.64 billion), marking the fastest monthly growth rate since May 2021. The figures point to continued resilience in household spending and a growing preference for digital payment channels across the Kingdom.

A key driver behind the increase was e-commerce, which strengthened its role in Saudi consumer habits and accounted for nearly one-quarter of total spending during the month. The share represents one of the highest levels recorded historically and reflects the rapid expansion of online shopping and digital transactions.

The latest figures also highlighted strong performance through point-of-sale systems, indicating that spending growth was spread across multiple economic activities rather than concentrated in online purchases alone.

Point-of-sale transactions rose by approximately 11.8 percent compared with the same month last year, recording the highest annual growth rate in more than two years. POS sales represented around 44 percent of total consumer spending in April, underlining the growing reliance on electronic payment methods in the Kingdom.

Cash transactions also increased, though their share of overall spending remained relatively limited. Withdrawals from automated teller machines rose about 10 percent year on year to SR42.4 billion, accounting for 31.6 percent of total spending.

Despite this increase, cash usage remains near historically low levels, reinforcing evidence that Saudi consumers are steadily shifting toward digital payments and card-based transactions rather than traditional cash dealings.

Sector data showed particularly strong growth in fashion and telecommunications spending.

Clothing and accessories recorded the fastest growth among POS categories, with spending rising 48 percent year on year. Telecommunications followed closely with a 36 percent increase.

Consumer spending on clothing and accessories reached approximately SR4.4 billion during April, representing about 7.5 percent of total POS expenditure.

At the same time, the average transaction value declined by nearly 9 percent to around SR117. Analysts suggest the drop may reflect seasonal promotions and discounts or changes in consumer purchasing habits. A broader rise in transaction volumes also points to an expanding customer base and stronger retail participation.

Entertainment spending maintained its upward momentum as well, extending its growth streak to nine consecutive months.

Spending in the entertainment sector rose around 19 percent in April, ranking among the strongest growth rates recorded over the past year. Total entertainment spending reached SR968 million, reflecting increasing demand for leisure activities and the continued expansion of local entertainment offerings.

The latest figures underline how Saudi Arabia’s consumer landscape is evolving, with digital commerce, electronic payments and lifestyle-related spending playing a growing role in household expenditure patterns as the Kingdom advances its economic transformation agenda.