Saudi Arabia’s Point-of-Sale Spending Surges by 7.7 Percent
In a recent report released by the Saudi Central Bank, also known as SAMA, it was revealed that point-of-sale spending in Saudi Arabia increased by 7.7 percent, reaching SR13.2 billion ($3.51 billion) from June 30 to July 6. The greatest rise in spending was seen in hotel payments, with a 17.9 percent surge to SR259.7 million.
Recovery in POS Spending After Eid al-Adha Vacation Period
After a dip in spending during the Eid al-Adha vacation period, point-of-sale spending in the Kingdom regained momentum in the week commencing June 23. Saudi-based economist Talat Hafiz explained that spending is usually lower during vacations like Eid al-Adha, as Saudis are more focused on performing Hajj rather than shopping and dining out.
Key Sector Highlights
Education spending saw a significant increase of 14.1 percent, reaching SR113 million, making it the second-highest increase compared to the previous week. Miscellaneous goods and services followed with a 10.1 percent surge to SR1.76 billion. Food and beverages remained the highest share of POS spending, with an 8.8 percent rise to SR2.05 billion.
Regional Spending Trends
Riyadh accounted for 32.09 percent of POS spending, with a total transaction value of SR4.26 billion, representing a 7.5 percent increase from the previous week. Jeddah followed with 14 percent of the total spending, reaching SR1.86 billion. Dammam saw a 7.5 percent surge to reach SR623.6 million, while Abha experienced the most significant positive change with a 13.5 percent increase to SR235.5 million.
Expansion and Growth in Riyadh
Riyadh has emerged as a major growth hub, with Spinneys recently opening its flagship outlet at La Strada Yard to meet the increasing demand for high-quality groceries in Saudi Arabia. This expansion reflects the growing economic activity and consumer spending in the region.