Saudi Arabia’s consumer spending held near $3.8 billion in the week ending August 22, as education-related transactions more than doubled amid the start of the new academic year, official data showed.
The Kingdom’s point-of-sale transactions totalled SR14.17bn ($3.78bn) during the monitored week, down a marginal 0.1 per cent from the previous week, while the number of transactions fell 4.9pc to 237.35 million.
The near-flat overall spending masked a dramatic surge in education-related transactions, which jumped 133.9pc week on week to SR1.04bn, as the number of education-related transactions climbed 55.7pc.
Speaking to Arab News, economist Talat Hafiz said that the sharp education spending “is quite normal, reflecting the strong seasonal effect of the back-to-school period, particularly spending on school supplies, clothing, electronics, transportation, and other related services.”
He added that while much of this increase is temporary and seasonal, it can provide a meaningful short-term boost to consumer spending and retail activity in the coming weeks.
“If consumer confidence and household spending remain resilient beyond the back-to-school period, the broader impact could extend into other segments of the non-oil economy,” he explained, cautioning about interpreting the 134pc increase as a sustained acceleration in economic activity, since it is partly driven by the low base and the highly seasonal nature of education-related spending.
“The key indicator to watch will be whether POS growth remains broad-based and strong after the back-to-school season. In short, I would view it as a positive short-term catalyst rather than, by itself, evidence of a lasting structural increase in consumer demand,” he said.
According to SAMA, spending on food and beverages amounted to SR2.11bn, representing a weekly decline of 4.1pc.
Transactions in restaurants and cafes stood at SR1.67bn, down 8.6pc, while spending on apparel, clothing and accessories totalled SR1.26bn, up 1.7pc.
The transportation sector witnessed POS transactions worth SR1.04bn, followed by spending at gas stations at SR960.41m.
Across healthcare, the value of transactions stood at SR798.52m, while spending on professional businesses and services amounted to SR800.66m.
Books and stationery also stood out, with transactions rising 30.2pc week on week to SR155.18m.
Riyadh dominated POS transactions, with spending in the capital reaching SR5.13bn, marking a 6pc increase compared with the previous week, even as the number of transactions dipped 2.3pc to 77.93m.
Jeddah witnessed transactions amounting to SR1.80bn, a decline of 4.4pc, while the total number of transactions stood at 26.22m.
In Dammam, consumer spending totalled SR712.78m, up 9.3pc, followed by Makkah at SR534.04m and Madinah at SR519.31m.
Alkhobar recorded SR426.43m in transactions, up 11.5pc, while spending in Buraidah and Abha amounted to SR345.52m and SR225.43m, respectively, with Abha posting the sharpest citywide decline at 14.4pc.
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