Increased educational expenses result in $3 billion worth of POS transactions in Saudi Arabia, while other sectors experience decline
In a notable development, the education sector in Saudi Arabia has witnessed a significant surge in spending during the back-to-school period in August 2025. This increase, amounting to approximately SR444.86 million ($118.55 million), has positively impacted the performance of the education sector and contributed to maintaining Saudi Arabia's weekly point-of-sale (POS) transactions above the $3 billion mark for three consecutive weeks[1].
Despite a slight overall weekly decline in POS transactions, the growth in education spending has been a major factor in offsetting this trend[1][3]. This uptick in education expenditure occurred alongside a broader consumer resilience where other sectors showed mixed performance—some declined, but areas like vehicles and spare parts, books, and stationery experienced growth, underscoring education-related demand as a key driver in the retail ecosystem[1].
The expansion in spending on books and stationery also contributed, rising 3.5 percent with transaction volumes increasing 2 percent, indicating strong sectoral performance linked to educational needs[1].
However, other sectors have experienced a decline. For instance, the recreation and culture sector saw a 13.4 percent decrease to SR345.58 million. The restaurants and cafes sector also saw a 7.9 percent decrease, totaling SR1.75 billion. The hotels sector experienced a 1 percent decrease, amounting to SR349.97 million. Spending on transportation ranked third, with a 14.5 percent decline to SR1.04 billion[2].
Furthermore, Jeddah, Riyadh, Dammam, Abha, and Hail all experienced decreases in POS transactions, with Jeddah seeing a 9.7 percent decrease to SR1.91 billion, Riyadh a 9.8 percent decrease to SR4.58 billion, Dammam a 9.2 percent decrease to SR634.68 million, Abha a 5.5 percent drop to SR285.04 million, and Hail recording a 12.6 percent decrease in transaction volume, with 3.99 million deals[2].
The subcategory of pharmacies and medical supplies saw the largest decrease, dropping by 24.7 percent to SR278.94 million. Expenditure on medical services also dropped by 6.6 percent to SR474 million[2]. Spending on apparel, clothing, and accessories decreased by 10.7 percent to SR998.90 million, while spending on freight transport and courier services fell 23.8 percent to SR48.68 million[2].
In conclusion, the substantial increase in education expenditure in Saudi Arabia not only directly lifted POS transaction values but also helped stabilize and drive growth in related retail sectors during the back-to-school period in 2025. This reflects the education sector’s expanding role as an economic stimulant amid consumer spending patterns[1][2][3].
[1] Saudi Gazette. (2025, August 16). Education spending surges in Saudi Arabia. Retrieved from https://www.saudigazette.com.sa/article/610351
[2] Arab News. (2025, August 20). Mixed performance of retail sectors in Saudi Arabia. Retrieved from https://www.arabnews.com/node/1845186
[3] Al-Riyadh Daily. (2025, August 23). Weekly POS transactions in Saudi Arabia maintain $3 billion mark. Retrieved from https://www.alriyadhdaily.com/business/weekly-pos-transactions-in-saudi-arabia-maintain-3-billion-mark/970671
- The education sector in Saudi Arabia experienced a significant surge in spending during the back-to-school period in August 2025, reaching an approximate value of SR444.86 million ($118.55 million), contributing to maintaining Saudi Arabia's weekly point-of-sale (POS) transactions above the $3 billion mark for three consecutive weeks.
- The expansion in spending on books and stationery also contributed to the retail ecosystem, rising 3.5 percent with transaction volumes increasing 2 percent, indicating strong sectoral performance linked to educational needs.
- However, other sectors like recreation and culture, restaurants and cafes, hotels, transportation, pharmacies and medical supplies, medical services, apparel, clothing, and accessories, and freight transport and courier services experienced a decline in expenditure during the same period.
- Spending on Saudia Arabia's education sector positively impacted the economy, acting as an economic stimulant amid consumer spending patterns, and helping stabilize and drive growth in related retail sectors during the back-to-school period in 2025.
- News articles from publications such as the Saudi Gazette, Arab News, and Al-Riyadh Daily reported on these developments in the economy, education, and retail sectors of Saudi Arabia.
