Saudi Arabia’s point-of-sale (POS) data reveals continued economic momentum, with over 236 million transactions totaling SR4.0 billion recorded between January 11th and 17th. The figures, released by the Saudi Press Agency (SPA), indicate robust consumer spending across multiple sectors. This sustained activity suggests a positive start to the year for the Kingdom’s economy, building on growth observed in late 2023.
The transactions were spread across the country, with Riyadh leading in both volume and value. These POS figures are a key indicator of domestic demand and provide insights into consumer behavior within the Saudi market. The data covers a wide range of businesses, from retail and hospitality to healthcare and transportation.
Strong Hospitality and Retail Drive POS Activity
The hospitality sector demonstrated significant strength during the reporting period. Restaurants and cafés accounted for the largest share of transactions, with 58.76 million totaling SR1.85 billion. Bakeries and confectionery followed with 7.33 million transactions worth SR281.5 million, highlighting continued demand for dining and leisure activities.
Sector Breakdown
Hotel transactions reached 1.03 million, valued at SR455.7 million, suggesting ongoing tourism and business travel. Food and beverage purchases, excluding restaurants and cafes, reached 52.21 million transactions worth SR2.04 billion. This indicates a broad appetite for consumer spending on everyday essentials and discretionary items.
Retail spending also remained a key driver of economic activity. Clothing and accessories recorded 10.83 million transactions valued at SR1.23 billion, while furniture and home supplies saw 2.90 million transactions totaling SR489.2 million. These figures suggest consumers are investing in both personal and household goods.
Electronics and electrical appliances accounted for 1.84 million transactions worth SR187.0 million. Jewelry purchases, a marker of discretionary spending, reached SR406.0 million from 307,000 transactions. These categories often reflect consumer confidence and disposable income levels.
Beyond retail and hospitality, professional and business services recorded 13.47 million transactions worth SR820.2 million. Healthcare services saw 9.83 million transactions worth SR823.6 million, reflecting consistent demand for medical care. Culture and entertainment activities totaled 3.87 million transactions valued at SR365.4 million, indicating a growing leisure sector.
Essential services also contributed significantly. Fuel station spending reached 17.21 million transactions worth SR1.00 billion, while transportation services recorded 6.02 million transactions valued at SR944.1 million. Other activities accounted for a substantial 40.17 million transactions worth SR2.26 billion, a broad category encompassing various smaller businesses.
Regional Variations in Spending
Riyadh dominated regional activity, recording 74.12 million transactions valued at SR4.74 billion. This reflects the capital’s position as the Kingdom’s economic and administrative center. Jeddah followed with 28.94 million transactions worth SR2.03 billion, demonstrating its importance as a commercial hub.
Makkah recorded 10.09 million transactions valued at SR628.5 million, while Madinah saw 9.85 million transactions worth SR614.9 million. These figures are likely influenced by religious tourism and resident populations. The Eastern Province also showed strong activity, with Dammam logging 9.48 million transactions valued at SR673.2 million and Khobar recording 4.98 million transactions worth SR400.2 million.
Transactions across other cities totaled 26.12 million operations valued at SR1.09 billion, according to SPA. This demonstrates a more distributed economic activity beyond the major urban centers, supporting the Kingdom’s diversification efforts.
The consistent POS data suggests a stable economic environment, although fluctuations in global oil prices and geopolitical factors could influence future trends. Monitoring these figures will be crucial for assessing the impact of Vision 2030 initiatives on domestic consumption and economic diversification. The Kingdom’s focus on developing its tourism sector and non-oil industries is expected to further stimulate consumer spending and overall economic growth.
Looking ahead, the SPA is expected to release further POS data on a weekly basis, providing ongoing insights into Saudi Arabia’s economic performance. Analysts will be watching for any significant shifts in spending patterns, particularly in relation to seasonal events and government policies. The next report, covering January 18th to 24th, will be released next week and will be closely analyzed for any emerging trends in retail sales and overall economic activity.
