Saudi Arabia Sees $4 Billion Surge in POS Spending as Education Sector Thrives

In recent weeks, Saudi Arabia has witnessed a remarkable surge in point-of-sale (POS) transactions, particularly in the education sector. This increase is largely attributed to the upcoming start of the second semester on November 17, which has prompted parents and students to spend more on educational materials and services. According to the Saudi Central Bank, known as SAMA, the total POS transactions reached an impressive SR15.1 billion (approximately $4.03 billion) between October 27 and November 2, marking a significant weekly increase of 36.6 percent.

The education sector has emerged as the frontrunner in this growth, showcasing a staggering 79.3 percent rise in spending, which amounted to SR177.6 million. This trend mirrors the spending patterns observed at the beginning of the school year in August, indicating that families are preparing for the academic challenges ahead.

Following the education sector, the clothing and footwear industry also experienced a notable increase, with a 63.7 percent jump in transactions, reaching SR1.07 billion. This suggests that consumers are not only focused on educational needs but are also investing in new clothing as students return to school. The telecommunication sector recorded a 51.9 percent increase, reaching SR157.1 million, highlighting the importance of connectivity in today’s educational environment.

Food and beverage spending also saw a significant uptick of 48.1 percent, totaling SR2.5 billion, which indicates that families are likely preparing meals and snacks for their children as they head back to school. The recreation and culture sector followed closely with a 40.9 percent increase, reaching SR296 million, suggesting that families are also looking to engage in leisure activities during this busy time.

Interestingly, restaurants and cafes accounted for the second-largest POS transaction value, totaling SR2.1 billion, while miscellaneous goods and services reached SR1.8 billion. Together, these three categories represented a substantial 42.8 percent of the total POS transaction value for the week.

Geographically, Riyadh led the way in POS transactions, contributing 33.7 percent of the total, with spending in the capital reaching SR5.11 billion, a 28.1 percent increase from the previous week. Jeddah and Dammam followed, with increases of 27.7 percent and 28.8 percent, respectively. Hail stood out with the most significant rise in spending, increasing by 65.1 percent to SR280.1 million, showcasing the diverse economic activities across different regions.

The surge in POS spending in Saudi Arabia, particularly in the education sector, reflects a broader trend of consumer confidence and economic activity as families prepare for the new academic semester. This increase not only highlights the importance of education in the Kingdom but also underscores the interconnectedness of various sectors in driving economic growth. As the second semester approaches, it will be interesting to observe how these spending patterns evolve and what they indicate about the overall economic landscape in Saudi Arabia.