Riyadh leads the way in POS spending, while the education sector experiences a remarkable surge

Saudi Arabia’s point-of-sale (POS) transactions rose by 2.6% to SR13.7 billion ($3.6 billion) in the week ending October 5, 2024, primarily driven by significant growth in the education sector. According to recent data from the Saudi Central Bank (SAMA), the education sector witnessed a remarkable 96.8% increase in transactions, amounting to SR196.8 million, marking a recovery after a series of declines since the academic year began in August.

The telecommunications sector also contributed to the positive trend, with spending increasing by 17.4% to SR136.5 million. Public utilities followed, recording a 13.9% rise in transactions to SR61.5 million.

However, not all sectors shared in this growth. The furniture market faced the largest decline, with expenditures dropping by 11.7% to SR349.3 million. Additionally, spending on electronic devices fell by 8.4% to SR238 million, while clothing and footwear saw a 7.4% decrease, amounting to SR757.3 million. Recreation and restaurant expenditures also experienced declines of 2.4% and 1.9%, respectively.

While these five sectors reported downturns, the overall landscape remained largely positive, with most industries experiencing growth. The food and beverages sector retained the highest share of POS spending, totalling SR2.22 billion, followed closely by restaurants and cafes at SR1.95 billion and miscellaneous goods and services at SR1.77 billion. Together, these three categories accounted for approximately 43.3% of the week’s total POS value, equating to SR5.9 billion.

Geographically, Riyadh dominated the POS transactions, making up 34.3% of the total with spending reaching SR4.71 billion, reflecting a 4.7% increase. Jeddah followed, showing a 2.2% rise to SR1.86 billion, which accounted for 13.6% of the total. Dammam ranked third with SR697 million in transactions, recording the highest increase of 5.8%. Tabuk also saw notable growth, up 4.2% to SR276.2 million. Other regions, such as Hail and Abha, reported increases of 1.7% and 0.5%, reaching SR224.6 million and SR168.6 million, respectively.

As the Kingdom continues to diversify its economy and bolster various sectors, the surge in POS transactions, particularly in education and telecommunications, underscores a robust consumer market driven by increased spending across multiple categories.