Education spending up in Saudi Arabia as POS transactions hit $2.9bn 

RIYADH: Saudi Arabia’s point-of-sale spending reached SR10.9 billion ($2.9 billion) in the week ending July 20, with the education sector recording the largest surge, according to official data.

Figures released by the Saudi Central Bank, also known as SAMA, revealed that this section of the economy saw a 10.4 percent increase over the seven-day period, with the total value of transactions hitting SR94.1 million.

The data also showed that spending in hotels increased by 0.2 percent compared to the previous seven days to reach SR270.2 million. 

This small rise came after larger increases in the sector in the previous two weeks, with a 17.9 percent surge from June 30 to July 6 and a 3.8 percent jump from July 7 to 13.

Despite growth in these sectors, POS spending in the Kingdom continued its reverse trajectory, declining by 8.8 percent after decreasing the week before by 9.8 percent. 

Spending on construction and building materials dipped by 5.2 percent over the most recent seven-day period, representing the smallest decrease of any sector compared to the previous week, to reach SR312.6 million.

The health sector witnessed the second-smallest dip, recording a 10.2 percent drop to come in at SR696.3 million.

Spending on clothing and footwear ranked joint-third in decline, along with electric devices, with both categories recording an 11.3 percent drop.

The highest value decrease was seen in the telecommunication sector, which posted a transaction total of SR89.5 million following a 13 percent drop.

Restaurant and cafe outlays dominated POS spending with SR1.67 billion, followed by SR1.64 billion on food and beverages, and SR1.41 billion on miscellaneous goods and services. Combined, these three categories account for 43.27 percent of the total POS spending value.

According to data from SAMA, 33.2 percent of POS spending occurred in Riyadh, with the total transaction value reaching SR3.63 billion, representing a 7.1 percent decline from the previous week.

Spending in Jeddah followed, accounting for 14.4 percent of the total and reaching SR1.58 billion, marking a 7.7 percent weekly negative change.

Expenditures in Hail, Tabuk, and Buraidah decreased by 14 percent, 12.4 percent, and 9.7 percent, respectively, with the figures reaching SR168.2 million, SR189.3 million, and SR249.6 million.

The smallest decrease was recorded in Makkah, which saw a 3.9 percent weekly change to come in at SR441.4 million.