Saudi consumer spending falls 5.6% in nine months

Riyadh – Mubasher: Consumer spending in Saudi Arabia fell by 5.57% on a year-on-year (YoY) basis during the first nine months of 2020, equivalent to SAR 42.52 billion.

Saudi consumer spending recorded SAR 721.18 billion in the January-September period, compared with SAR 763.7 billion in the year-ago period, according to data collected by Mubasher based on official figures from the Saudi Arabian Monetary Authority (SAMA).

This decline was driven by the closure of some economic and commercial activities during the year, particularly during the second quarter (Q2), due to the COVID-19 outbreak.

Cash withdrawals dropped by 15.4% YoY or SAR 85.4 billion in the nine-month period, reaching SAR 469.41 billion.

On the contrary, points of sale (POS) deals amounted to SAR 251.78 billion in the current-year period, posting a 20.53% annual growth.

Consumers spent SAR 45.91 billion on the food and beverage sector, and SAR 26.25 billion and SAR 21.35 billion, respectively, on the restaurants and hotels, and the health sectors.

Riyadh city saw the highest consumer spending at SAR 77.99 billion, followed by Jeddah and Dammam with SAR 39.39 billion and SAR 14.2 billion, respectively.

During the third quarter (Q3), consumer spending rose by 0.19% or SAR 472.6 million to stand at SAR 254.63 billion, compared with SAR 254.15 billion in the year-ago quarter.