Post by : Shweta
Food and Beverage Spending Leads Growth
Food and beverage spending was the strongest major contributor to the weekly increase. Spending in the category climbed 22.8 percent from the previous week to SR2.59 billion.
Restaurants and cafes recorded SR1.78 billion in transactions, representing a 6.7 percent weekly increase. Apparel, clothing and accessories also posted solid growth, with spending rising 11.8 percent to SR1.41 billion.
The figures show that consumer demand remained strong across everyday purchases as households continued spending on food, clothing and other goods and services.
Back-to-School Spending Boosts Retail
Education-related spending increased another 5 percent to SR1.1 billion after more than doubling during the previous week as the new academic year began. Books and stationery were among the strongest-performing categories, with transaction value increasing 28.7 percent to SR199.74 million.
The number of transactions for books and stationery surged 79.2 percent week on week. The figures suggest that preparations for the new school year continued to generate significant retail activity across the Kingdom.
Transport, Healthcare and Services Also Rise
Transportation spending increased 9.2 percent to SR1.13 billion, while spending at gas stations rose 11.7 percent to SR1.07 billion. Healthcare transactions climbed 12 percent to SR894.24 million.
Professional and business services also recorded growth, with transaction value increasing 9 percent to SR872.81 million. These increases demonstrate that the weekly spending rise was spread across several areas of the Saudi economy rather than being driven by only one category.
Telecom and Leisure See Strong Gains
Telecommunications spending increased 26.7 percent during the week to SR208.28 million. Recreation and culture spending also rose strongly, increasing 20.4 percent to SR432.83 million.
At the same time, not every sector recorded growth. Hotel spending declined 7.4 percent to SR282.81 million, while jewelry transactions fell 8.6 percent to SR275.62 million, making both categories among the weakest performers during the week.
Riyadh Remains the Biggest Spending Market
Riyadh recorded the largest amount of point-of-sale spending, reaching SR5.5 billion, an increase of 7.2 percent from the previous week. The number of transactions in the capital also rose 7.2 percent to 83.54 million.
Jeddah recorded SR2.11 billion in transactions, up 17.6 percent, while the number of transactions increased 7.5 percent to 28.19 million. Dammam recorded SR764.04 million, up 7.2 percent.
Makkah recorded SR626.14 million, representing a 17.2 percent increase, while Madinah reached SR618.07 million, up 19 percent. The geographic figures show broad consumer activity across several major Saudi cities.
Inflation Not Seen as the Main Driver
Economist Talat Hafiz said the latest figures were encouraging, particularly because Saudi Arabia's inflation remains relatively contained. The Kingdom's annual inflation rate stood at around 1.8 percent in July, according to GASTAT.
Hafiz said the increase in the average transaction value appeared to be about 3.6 percent when compared with the growth in transaction numbers and total spending. He cautioned against attributing the entire increase in spending to inflation.
According to his assessment, the figures may instead reflect stronger consumer activity, larger shopping baskets, increased consumption or greater spending on higher-value goods and services.
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