RIYADH: Consumer spending in Saudi Arabia recorded strong growth during April, rising by about 17.5 percent year on year to reach SR133.9 billion ($35.64 billion), marking the largest monthly growth rate since May 2021.
This performance was primarily driven by robust growth in e-commerce, which continued to strengthen its presence in consumer behavior, capturing nearly a quarter of total consumer spending, a historically high share compared to previous periods, reflecting the accelerating shift toward digital channels.
At the same time, point-of-sale data showed an expansion in spending across various economic activities, with POS sales rising by about 11.8 percent, recording the highest growth rate in more than two years.
POS transactions represent about 44 percent of total consumer spending, indicating that spending strength was not limited to e-commerce but extended to most consumer sectors.
Cash withdrawals from ATMs increased by about 10 percent year on year to SR42.4 billion in April, accounting for 31.6 percent of total consumer spending.
Despite its growth, cash’s share of spending remains near its lowest historical levels, providing additional evidence of the continued shift of consumers toward electronic payments and point-of-sale transactions at the expense of traditional cash dealings.
Fashion and telecom lead growth
At the sector level, the clothing and accessories and telecommunications sectors topped the list of fastest-growing activities via POS devices, recording increases of 48 percent and 36 percent, respectively.
Consumer spending on fashion reached about SR4.4 billion, equivalent to 7.5 percent of total POS spending.
In contrast, the average transaction value fell to about SR117, a decline of nearly 9 percent, which may indicate seasonal effects related to offers and discounts or changes in spending patterns. The broad growth in the number of transactions also points to an expanding consumer base.
Entertainment continues its momentum
In the entertainment sector, spending continued to grow for the ninth consecutive month, supported by the expansion of local entertainment events and activities, rising by about 19 percent during April, one of the highest growth rates recorded over the past 12 months.
Total spending on entertainment during April reached SR968 million, reflecting the sector’s growing contribution to the consumer spending basket, alongside the expansion of local entertainment options and increased demand for them.
