Central Bank data reported that Saudi Arabia’s point-of-sale spending was nearly at $4 billion in the week ending February 21, although the total volume of transactions dropped at the beginning of Ramadan.
The latest data from the Saudi Central Bank, also known as SAMA, shows that the total POS transactions settled were at SR13.9 billion ($3.71 billion), representing a 9.3 percent week-on-week decline, while the number of transactions dropped to 12.5 percent to SR220.57 million.
Expenditures on freight transport, postal, and courier services increased nearly 24.4 percent per week to SR80.68 million, which is one of the best gains in the sector, as demand for deliveries has been rising during the holy month.
Saudi economist Talat Hafiz, in an interview with Arab News, has traced the wider deceleration in spending to seasonal consumption patterns attributed to Ramadan.
He said, “During the first week of Ramadan, consumer behavior typically shifts, as individuals focus more on purchasing goods related to the holy month while reducing discretionary spending.”
SAMA’s report revealed that spending on food and beverages increased by 2.1 percent to SR2.62 billion, accounting for the largest share of total POS transactions.
Therefore, restaurant and cafe spending decreased by 28.3 percent to SR1.24 billion. Hafiz said this purchasing pattern is expected to continue as Eid Al-Fitr approaches.
He stated, “Spending behavior is likely to shift again, with increased expenditure on travel-related services, apparel, clothing, and accessories in preparation for Eid. During the Eid holiday itself, we can expect a noticeable rebound in spending on recreation, entertainment, restaurants, and cafes.”
The spending in the field of public utilities increased by 2.3 percent to SR63.06 million, and the expenditure in the field of apparel and clothing outlays came in next, declining by 4.8 percent to SR1.32 billion.
However, spending at pharmacies and medical supply outlets declined by 7.9 percent to SR206.1 million, while spending on medical services fell by 10.6 percent to SR482.53 million. Expenditure on personal care declined by 23.6 percent to SR93.34 million.
The most important cities of the Kingdom reflected the adverse developments. The biggest decrease of 10.8 percent was recorded in Riyadh, which contributed the highest proportion of overall spending on POS, to SR4.75 billion.
The number of transactions in the capital reached 69.8 million, down 13.3 percent week-on-week. The value of transactions in Jeddah fell by 11.1 percent to SR1.88 billion and in Dammam by 9.1 percent to SR678.29 million.
POS data tracked weekly by SAMA provides an indicator of consumer spending trends and the ongoing expansion of digital payments in Saudi Arabia.
The data also points to the growing scope of POS infrastructure, which is not only in large retail centers but also in smaller cities and service industries, which contributes to the expansion of digital inclusion.
