Saudi Education Spending Surges as Overall Consumer Transactions Decline

Riyadh, Saudi Arabia – Saudi Arabia’s education sector saw a sharp rise in spending, soaring 144.6 percent to SR200.7 million ($53.5 million) in the week ending March 8. The increase comes as students returned from a break, contributing to the sector being the only category to post growth amid an overall decline in consumer transactions.

According to the latest point-of-sale (POS) data from the Saudi Central Bank (SAMA), the education sector also recorded a 7.6 percent rise in transaction volumes, reaching 116,000 transactions. This follows a 33.6 percent slump in the previous week, highlighting a rebound in spending on educational services and supplies.

Consumer Spending Sees Significant Drop

Despite the surge in education-related spending, overall POS transactions in Saudi Arabia fell 25.5 percent to SR13.09 billion, down from SR17.57 billion the week before.

Among the hardest-hit sectors was furniture, which recorded a 38.7 percent drop, bringing total sales down to SR321.5 million. Electronics spending also declined sharply, falling 29.2 percent to SR159.1 million, while recreation and culture experienced a 21.2 percent drop to SR266.5 million.

Food and Hospitality Spending Declines

The food and beverage sector, which typically represents a large share of total consumer spending, fell 38.1 percent to SR2.06 billion, marking the steepest decline among all categories.

Spending in restaurants and cafés followed closely, dropping 38.3 percent to SR1.29 billion. Miscellaneous goods and services also saw a 21.3 percent decrease, totaling SR1.66 billion. Together, these three sectors accounted for 38.3 percent (SR5 billion) of total weekly POS spending.

Other categories experiencing declines included:

• Clothing and footwear, down 2.3 percent to SR1.22 billion (smallest decrease)
• Jewelry, dropping 4.4 percent to SR319.7 million
• Transportation, falling 5.8 percent to SR790.8 million

Regional Breakdown: Riyadh Leads, Hail Sees Sharpest Drop

Geographically, Riyadh dominated POS transactions, accounting for 34.9 percent of total spending. However, expenses in the capital dropped 21.9 percent to SR4.58 billion.

Other major cities also saw significant declines:

• Jeddah recorded a 24.4 percent decrease to SR1.85 billion
• Dammam followed with a 21.4 percent drop to SR666.6 million

Hail experienced the most severe decline, with spending falling 36 percent to SR188.4 million. Meanwhile, Abha and Tabuk saw reductions of 30.4 percent and 28.57 percent, bringing total spending to SR139.7 million and SR239.4 million, respectively.

In terms of transaction volume, Hail and Buraidah saw the largest declines, falling 27.2 percent and 23.4 percent, with transactions totaling 2.9 million and 4 million, respectively.

Despite the downturn in overall consumer spending, the significant increase in education expenditures suggests a rebound in demand for academic services following the holiday break. However, broader economic trends indicate a cautious consumer environment across various sectors.