Saudi Arabia's total point-of-sale (POS) transactions surged to SR12.1 billion ($3.2 billion) in the week ending April 25, fueled by a significant increase in hotel sector receipts. According to the latest data from the Saudi Central Bank (SAMA), hotel spending rose by 40.3 percent to SR331.9 million, with the number of transactions climbing 20.9 percent to 859,000.
Hajj Season Drives Spending
The spike in hotel spending coincides with the arrival of Hajj pilgrims from around the world. Travelers from Pakistan, India, and Turkiye have been arriving in the Kingdom since mid-April, marking the start of the annual pilgrimage season. During the April 21 Cabinet session, Crown Prince Mohammed bin Salman ordered that all resources and capabilities be utilized to ensure the success of organizational, security, and preventative plans for this year's Hajj.
The pilgrims' spending has significantly influenced the retail market. Makkah, the main site of Hajj, experienced a 28.5 percent surge in spending during the monitored week.
Overall POS Trends
The Hajj season has helped ease the overall decline in POS spending. The total value fell 1.9 percent week on week, compared with a 7.9 percent drop the previous week. During the seven-day period ending April 25, the number of transactions reached 225.2 million.
Sector Performance
Other sectors also saw positive changes. Expenditure on airlines rose 4.6 percent to SR43.2 million, while freight transport and courier services increased by 11.7 percent to SR45 million. Outlays on food and beverages, the largest share of POS transactions, fell 4.8 percent to SR1.9 billion. Spending on restaurants and cafes declined 3.1 percent to SR1.61 billion, and apparel spending edged down 0.5 percent to SR902.6 million.
City-wise Breakdown
Riyadh, which accounted for the largest share of total POS spending, saw a 2.6 percent drop to SR4.26 billion, with transactions down 2.2 percent to 73.9 million. Jeddah's transaction values decreased 0.6 percent to SR1.68 billion, while Dammam reported a 3.1 percent decrease to SR630.4 million.
Digital Payment Growth
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia. The data highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives. The growth of digital payment technologies aligns with Saudi Arabia's Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom's broader digital economy.
