Riyadh – Mubasher: Point of Sales (POS) transactions in Saudi grew by more than 30% in October, and according to a recent report, digital transactions could increase consumption and contribute to economic growth.
The growth in POS sales is attributed to restaurants and hotels segment, as shown by a recent report by Al Rajhi Capital Research.
The private sector credit reported annual growth of 4.2% in October, its highest in two years, while bank claims on the public sector grew 24.2% year-on-year (YoY) in the same month.
Money supply (M3) increased by more than 4.9% YoY, driven by growth in both, M1 and M2.
However, banking profits declined by 1.2% in October compared with 33.9% in September.
The research firm further noted that remittances by Saudi Nationals increased by 5.1% in October after retreating by 5.2% in September.
Al Rajhi Capital expects the tourist visa in September to further support the growth of retail and consumer sectors in the coming months.
More than 50,000 tourists visited the Kingdom since introducing the Visa in September.
The Saudi government is focusing on reviving the manufacturing sector, which should positively impact the non-oil gross domestic product (GDP) growth.
It is worth noting that the headline Purchasing Managers Index (PMI) in Saudi Arabia surged to a 51-month high in November, recording 58.3 points in November, up from 57.8 in October. Its highest level in more than four years.