RIYADH: Saudi Arabia’s consumer spending stayed above $3 billion in the week ending Oct. 17, but fell sharply from the previous week as education-related transactions roughly halved, official data showed.
The Kingdom’s point-of-sale transactions totaled SR12.60 billion ($3.36 billion), down 6.8 percent from the previous seven days, while the number of transactions fell 2.7 percent to 246.42 million, according to data released by the Saudi Central Bank, also known as SAMA.
Education-related spending fell 50.9 percent week on week to SR83.46 million, while the number of education-related transactions declined 24.2 percent.
“The recent decline could be partly attributed to ongoing regional geopolitical developments, which may have temporarily influenced consumer spending behaviour, particularly in the travel sector,” economist Talat Hafiz told Arab News.
He noted that citizens and residents currently prefer to remain in the Kingdom rather than travelling, given Saudi Arabia’s stability, security, and the sense of reassurance it provides.
“This may also lead to a more selective approach to international travel and leisure spending.”
Hafiz said that he remains optimistic that consumer spending patterns will return to normal as regional tensions ease, adding that these developments represent a temporary shift in expenditure in response to external circumstances rather than an indication of any fundamental weakness in the national economy.
Sectoral spending
Spending on food and beverages amounted to SR2.22 billion, a weekly decline of 3.3 percent.
Transactions in restaurants and cafes stood at SR1.65 billion, down 3.5 percent, while spending on apparel, clothing and accessories totaled SR910.86 million, down 11.2 percent.
Spending at gas stations stood at SR998.21 million, followed by the transportation sector at SR921.87 million.
In healthcare, the value of transactions stood at SR823.29 million, down 6.7 percent, while spending on professional and business services amounted to SR733.39 million.
Several discretionary categories posted steep declines. Spending on airline transactions fell 29.7 percent to SR28.17 million, while the number of airline transactions declined 9.9 percent.
Hotel spending dropped 17.7 percent to SR222.98 million, and jewelry spending declined 16.7 percent to SR357.52 million.
Books and stationery spending fell 14.1 percent week on week to SR102.29 million.
Geographic breakdown
Riyadh dominated POS transactions, with spending in the capital reaching SR4.41 billion, an 8.4 percent decrease compared with the previous week, while the number of transactions dipped 4.8 percent to 81.60 million.
Jeddah recorded POS spending of SR1.67 billion, a decline of 7.2 percent, while the number of transactions stood at 27.47 million.