Arab News | Saudi consumer spending stays above $3bn as food and beverages sector leads

RIYADH: Consumer spending in Saudi Arabia remained above $3 billion for the week ended Oct. 10, with point-of-sale transactions in the Kingdom totalling SR13.52 billion ($3.6 billion), official data showed. 

According to the latest data released by the Saudi Central Bank, also known as SAMA, the food and beverages sector led consumer spending in the Kingdom, with transactions totalling SR2.29 billion, despite a weekly decline of 22.9 percent. 

The total value of POS transactions in the Kingdom fell 18.1 percent week on week, while the number of transactions dropped by 7.5 percent to 253.35 million. 

The continued trend of weekly POS spending above $3 billion underscores sustained consumer confidence and the ongoing shift towards digital payments, supported by the Kingdom’s Vision 2030 reform initiative. 

The momentum also marks a key milestone in the nation’s shift toward a cashless economy, aligning with one of the core objectives of the Financial Sector Development Program under Vision 2030. 

Commenting on the trend, Olivier de Cointet, senior adviser, consumer and retail at Arthur D Little, said: “Putting last week’s POS transaction value into perspective, spending was only 5.2 percent below the average of the previous three weeks and remained above the levels recorded in the weeks of Sept. 13 and Sept. 20, pointing to continued resilience in domestic demand.” 

Cointet further said that the Kingdom benefits from a large, young and increasingly urban consumer base, which provides structural support to consumption. 

“The fact that spending remains strong across food, dining, mobility, healthcare and other everyday categories further suggests that underlying consumer activity remains solid despite regional uncertainty,” he added. 

Sectoral spending 

According to the latest SAMA report, spending in restaurants and cafes amounted to SR1.7 billion, down 9.9 percent from the previous week. 

Transactions at gas stations stood at SR1.03 billion, while spending on apparel, clothing and accessories amounted to SR1.02 billion. 

The transportation sector witnessed POS transactions worth SR966.21 million, followed by the healthcare sector at SR882.16 million and professional and business services at SR756.5 million. 

Geographic breakdown 

Riyadh dominated POS transactions, with spending in the capital totalling SR4.81 billion, down 14.4 percent week on week. 

The number of transactions in Riyadh also fell by 4.8 percent to 85.7 million. 

Jeddah witnessed POS transactions amounting to SR1.8 billion, while the total number of transactions stood at 28.23 million. 

In Dammam, the spending totaled SR683.70 million, followed by Makkah at SR538.74 million and Madinah at SR518.64 million.