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Back-to-School Boom: Saudi Education Spending Skyrockets 91.5%

Education spending in Saudi Arabia witnessed a significant surge, soaring by 91.5% to SR220.76 million ($58.8 million) between 12th and 18th January. This remarkable growth coincided with students returning to school after the midyear break. According to the Saudi Central Bank’s point-of-sale (POS) transactions bulletin, the education sector was the only one to record positive growth during this period.

POS Transactions Highlight Sectoral Shifts

The number of education-related transactions rose by 60% to 153,000, showcasing a strong rebound in the sector. Meanwhile, overall POS transactions in Saudi Arabia declined by 12.1%, dropping to SR11.77 billion from SR13.4 billion the previous week. This decline reflected cooling spending across most sectors, with clothing and footwear experiencing the sharpest drop at 27.5%, totaling SR663.16 million.

Spending on hotels fell by 19.9% to SR324.45 million, while recreation and culture recorded a 19.7% decline to SR221.8 million. Similarly, food and beverages expenditure decreased by 9.2% to SR1.73 billion, claiming the largest share of total POS value. Restaurants and cafes followed with an 18% drop, reaching SR1.73 billion.

Miscellaneous Goods and Services See Decline

Moreover, miscellaneous goods and services accounted for the third-largest POS share, declining by 12.3% to SR1.42 billion. Spending in the top three categories—food and beverages, restaurants and cafes, and miscellaneous goods—represented approximately 41.5% of the week’s total POS value, amounting to SR4.8 billion.

The smallest decrease occurred in construction materials, with spending dipping by just 2.1% to SR340.1 million. Transportation expenditures followed, falling by 2.6% to SR661.6 million, while public utilities recorded a 6% decline to SR48.1 million.

Regional Spending Trends

Geographically, Riyadh dominated POS transactions, accounting for 35.5% of the total, with expenses reaching SR4.18 billion—a 9% decrease from the previous week. Jeddah followed with a 12.5% drop to SR1.71 billion, while Dammam came in third at SR602.91 million, down 7.1%. Madinah experienced the most significant spending decline, falling by 19.6% to SR471 million.

Hail and Makkah also saw substantial decreases, with spending dropping by 18.6% and 17% to SR171.87 million and SR497.28 million, respectively. In terms of transaction numbers, Madinah and Makkah recorded the largest declines, slipping by 13.5% and 12.7% to 7.98 million and 8.18 million transactions, respectively.

The surge in education spending highlights the sector’s resilience as students return to classrooms. However, the broader decline in POS transactions underscores shifting consumer priorities and economic adjustments across Saudi Arabia.

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