RIYADH: Saudi Arabia's point-of-sale (POS) spending surged to approximately SR58.51 billion ($15.6 billion) in August, reflecting a 9.67 percent increase compared to the same period last year, according to recent data.
Figures from the Saudi Central Bank, SAMA, indicate that 36 percent of this spending, amounting to SR16.55 billion, was directed towards beverages, food, restaurants, and cafes, marking a 4.72 percent rise. This growth was largely fueled by increased expenditures in dining establishments.
Additionally, 6.2 percent, or SR3.63 billion, was spent on clothing and footwear, while health and transportation each accounted for about 6 percent, or SR3.38 billion, of the total.
The most notable growth was observed in jewelry sales, which jumped by 15 percent to SR982.15 million. Telecommunications also saw a 14 percent increase to SR493.5 million, although it constituted only 1 percent of the overall spending.
Expenditures on miscellaneous goods and services, including personal care and maintenance, rose by 12 percent to SR6.56 billion in August.
The rise in POS spending, particularly in the hospitality sector, is linked to several factors contributing to Saudi Arabia's economic transformation and digitalization efforts. As technology adoption grows and consumers increasingly favor cashless transactions, businesses are recognizing the importance of robust POS systems to improve efficiency and customer experience.
The hospitality industry is leading this trend, supported by a booming tourism sector and government initiatives to diversify the economy. With more international events and tourists visiting Saudi Arabia, hospitality operators are investing in advanced POS solutions to enhance service delivery and optimize operations.
Moreover, the rise of digital payment options, driven by a tech-savvy population, is further boosting this trend as customers seek seamless and convenient payment experiences.
In this evolving landscape, TRAY, a leading provider of cloud-native POS systems, has expanded its partnership with Alraedah Finance, a major financial and digital solutions provider in Saudi Arabia. This collaboration aims to deliver cutting-edge POS solutions to businesses across the MENA region.
On the other hand, public utilities sales declined by 35 percent year-on-year to SR324.7 million. This drop is attributed to privatization efforts in the utility sector, which have led to more efficient technologies and renewable energy solutions, reducing costs.
Spending on electronic and electric devices also fell by 15 percent to SR878.5 million, influenced by seasonal promotions and economic conditions.
Riyadh dominated POS sales in August with 34 percent, reaching about SR20 billion, followed by Jeddah with 14 percent, totaling SR8.16 billion. The capital's thriving hospitality scene and government initiatives to promote tourism and diversify the economy have significantly boosted consumer activity and spending.
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