Saudi Arabia’s Point-of-Sale Spending Surges to SR58.51 Billion in August
In a remarkable uptrend, Saudi Arabia’s point-of-sale spending soared to approximately SR58.51 billion ($15.6 billion) in August, marking a 9.67 percent increase compared to the same period last year, as per the latest data released by the Saudi Central Bank, also known as SAMA.
Key Insights into Point-of-Sale Spending Breakdown
The data revealed that during this period, 36 percent of point-of-sale spending was allocated to beverages, food, restaurants, and cafes, amounting to SR16.55 billion and reflecting a 4.72 percent rise. The surge in spending in this category was primarily fueled by increased consumption in restaurants and cafes.
Clothing and footwear accounted for an additional 6.2 percent of the total spending, reaching SR3.63 billion, while health and transportation each represented approximately 6 percent, totaling SR3.38 billion.
Notably, jewelry sales experienced the strongest growth, increasing by 15 percent to SR982.15 million, followed by a 14 percent surge in telecommunications spending to SR493.5 million.
Factors Driving the Rise in Point-of-Sale Spending
The surge in point-of-sale spending across Saudi Arabia, particularly in the hospitality sector, can be attributed to several interconnected factors that reflect the Kingdom’s ongoing economic transformation and digitalization initiatives.
As technology adoption accelerates and consumers increasingly opt for cashless transactions, businesses are recognizing the importance of robust point-of-sale systems to improve operational efficiency and enhance customer experiences.
The hospitality industry, propelled by a flourishing tourism sector and government efforts to reduce reliance on oil, is leading the trend. With Saudi Arabia hosting more international events and attracting tourists, hospitality operators are investing in advanced point-of-sale solutions to streamline service delivery and leverage data analytics for valuable insights.
Partnerships Driving Innovation in Point-of-Sale Technology
TRAY, a cloud-native point-of-sale systems leader, has expanded its partnership with Alraedah Finance, a prominent provider of financial and digital solutions in Saudi Arabia. This collaboration aims to deliver cutting-edge point-of-sale solutions to businesses across the MENA region, enhancing service offerings and supporting the development of the SME sector, particularly in hospitality.
Declining Spending in Certain Sectors
While overall point-of-sale spending saw a significant rise, sales in public utilities experienced a decline of 35 percent year-on-year, totaling SR324.7 million. This drop can be attributed to ongoing privatization efforts in the Gulf’s utility sector, which have led to cost reductions and increased sustainability.
Additionally, spending on electronic and electric devices dropped by 15 percent to SR878.5 million, influenced by factors such as seasonal promotions and changing economic conditions.
Riyadh Leads in Point-of-Sale Sales Distribution
Riyadh emerged as the frontrunner in point-of-sale sales distribution in August, accounting for 34 percent and reaching approximately SR20 billion, followed by Jeddah at 14 percent, totaling SR8.16 billion. The capital’s vibrant hospitality scene, coupled with government initiatives promoting tourism and economic diversification, has fueled consumer activity and spending.
Riyadh’s growing population and tech-savvy demographic further contribute to its dominance in point-of-sale spending, positioning the city as a key player in Saudi Arabia’s evolving digital economy.