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
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