RIYADH: Saudi Arabia’s point-of-sale spending came in at SR8.34 billion ($2.22 billion) from June 16 to 22, official figures revealed — with 30.3 percent of the total coming in the Kingdom’s capital city.
The latest data from the Saudi Central Bank, also known as SAMA, revealed that transactions at restaurants and cafes, which account for the largest share at 19.31 percent, saw a 20 percent dip, the second smallest decrease, reaching SR1.61 billion, during this week.
From May 26 to June 1, POS spending in the Kingdom surged to a record high of SR15.22 billion before starting to decline.
The decrease in point-of-sale value and transactions has coincided with the Eid al-Adha holiday period, which is typical for several reasons, as explained by Talat Hafiz in an interview with Arab News.
“Spending is usually less during such vacations, since most families stay home. Also, a number of families have gone to Hajj and devoted their time to performing Hajj compared to the normal or regular days where they go to shopping malls and restaurants for entertainment, spending money on food and other needs using point-of-sale for making payments,” Hafiz said.
Data from SAMA for the week of June 9 to 15, prior to the Eid week, showed that spending on clothing and footwear surged to SR1.35 billion, the highest figure compared to the previous two weeks.
“As it is clear, the high spending on food, clothing, and services happens before the Eid vacation and after the Eid vacation. Spending usually witnesses a drop, which is quite normal, and this is quite clear when looking at the level of spending during the week prior to Eid’s week,” he added.
According to the latest data, spending on food and beverages from June 16 to 22, held a 16.35 percent share, and recorded a decrease of 32.4 percent, amounting to SR1.36 billion.
Saudi spending on miscellaneous goods and services, including personal care items, supplies, maintenance, and cleaning, constituted the third-highest share and witnessed a 47.4 percent decrease that week, reaching SR991.6 million.
The hotel sector experienced the slightest drop in POS transaction value, slowing down by 5.1 percent to SR191.3 million.
On the other hand, gas stations witnessed the third-smallest dip, with 21.1 percent, reaching SR695.3 million.
The highest decline was recorded in the footwear and clothing sector, with 64.4 percent reaching SR483.3 million that week.
According to data from SAMA, 30.3 percent of POS spending occurred in Riyadh, with the total transaction value reaching SR2.46 billion, representing a 46.1 percent decrease from the previous week.
Riyadh has undergone considerable expansion, evolving into a pivotal center for growth and progress. The city is witnessing a surge in new businesses setting up operations, drawn by its vibrant economic landscape and strategic prospects for investment and innovation.
Spending in Jeddah followed, accounting for 14.1 percent of the total and reaching SR1.17 billion, marking a 37.9 percent weekly negative change.
Moreover, spending in Hail and Madinah decreased by 45.9 percent and 37 percent to reach SR136.5 million and SR360.5 million, respectively.
The two cities that registered the highest losses in POS spending were Tabuk and Dammam, with decreases of 52.6 percent and 47.4 percent, respectively.
The value of transactions in Tabuk reached SR134.5 million, while in Dammam, it was SR367 million.
