Prime Highlights:
- Saudi Arabia’s point-of-sale (POS) spending jumped 17.8% to SR15.79 billion ($4.21 billion), showing strong consumer confidence.
- Growth was supported by Vision 2030 reforms, digital payment adoption, and higher spending across major sectors.
Key Facts:
- Food and beverage led with SR2.30 billion in sales, rising 29.4%, while restaurant and café spending reached SR1.70 billion, up 9.9%.
- Riyadh topped regional spending at SR5.47 billion, followed by Jeddah at SR2.19 billion, with both cities recording double-digit growth.
Key Background:
In a significant development, Saudi Arabia registered a significant increase in point-of-sale (POS) transactions over the week ending August 30 as consumer confidence levels improved and the Kingdom continued to advance towards a digital economy. According to the Saudi Central Bank, the total value of POS transactions climbed 17.8 percent to SR15.79 billion ($4.21 billion), marking the sharpest increase in three weeks.
The number of transactions also moved upward, increasing 11.2 percent to 237 million. This rise in expenditure represents the good performance of the non-oil sector of Saudi Arabia and indicates the contribution of Vision 2030 towards the diversification of the economy.
The food and beverage sector was the first to declare SR2.30 billion of spend, a growth of 29.4 percent. The spending on clothes and accessories grew by 16.3 percent to SR1.18 billion, and customers show a steady demand.
Hotel industry expenditure was down by 6.5 percent to SR254 million, but other industries recorded a stunning growth. Education-related transactions reached SR1.10 billion, and spending at fuel stations stood at SR1.08 billion, further illustrating broad-based consumer activity.
Riyadh led the way in spending, reaching SR5.47 billion, which was 11.7 percent higher than the previous week. Jeddah recorded SR2.19 billion in spending, up 24.1 percent, while Dammam came next with SR771.7 million, rising 14.7 percent. Madinah experienced a healthy growth of 27.1 percent to attain SR624.3 million, followed by Makkah at SR610.99 million. There was also a continuous increase in spending in other cities like Al-Khobar, Buraidah, and Abha.
As a result of the growing number of people who use digital payments, increasing incomes, and a young demographic, consumer behavior in Saudi Arabia is shifting rapidly. Analysts reckon that this consistent expenditure is an indication that Saudi consumers are still confident, despite the difficult periods in the world economy
The fact that the number of point-of-sale transactions keeps increasing is a testament to how the Kingdom is working towards creating a more diversified economy and how this country is becoming a significant business and digital hub.
