Saudi Arabia’s spending on electronic devices saw a 4% increase reaching SR170.6 million ($45.4 million) between February 16 and 22, 2024. This positive trend stood out even as overall point-of-sale (POS) transactions dropped by 2.1% to SR13 billion, according to the Saudi Central Bank (SAMA).

Electronics Sector Shines Amidst Decline

The electronics sector was one of the few industries to record growth last week. Saudis spent SR170.6 million on electronic gadgets marking a 4% rise from the previous week’s figures.

Other sectors showing positive growth included

- Clothing and Footwear: Up by 3.4% to SR873.1 million with a 2.9% rise in transactions totalling 6.5 million.

- Furniture: Increased by 3.3% reaching SR359.3 million.

- Hotels: Experienced a 2% boost to SR367 million.

- Recreation and Culture: Grew by 0.9% amounting to SR269.7 million.

Overall Spending Drops

Despite gains in some sectors, Saudi Arabia’s overall POS transactions fell by 2.1% dropping to SR13 billion from SR13.3 billion the week before.

Notable decreases included

- Food and Beverages: Down by 3.7% to SR1.904 billion.

- Restaurants and Cafes: Fell by 1.7%, totalling SR1.903 billion.

- Jewellery: The biggest drop down 11.6%, with spending at SR262.7 million.

- Public Utilities: Decreased by 7.7% to SR52.3 million.

- Health Sector: Declined by 7.3% to SR749.6 million.

Regional Insights

Geographically Riyadh led in POS transactions, accounting for 35.3% of the total but spending in the capital fell by 2.6% to SR4.6 billion.

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Other cities performance

- Jeddah: Declined by 1.2% recording SR1.8 billion.

- Dammam: Dropped by 2.1% reaching SR646.2 million.

- Tabuk: Saw the steepest decline falling 5.6% to SR229.4 million.

- Hail and Makkah: Experienced drops of 1.9% and 0.1% recording SR196.9 million and SR555.8 million, respectively.

Tabuk and Makkah also saw the largest decreases in the number of transactions slipping by 5.8% and 3.3% totalling 4.3 million and 8.4 million transactions.

While the electronics sector in Saudi Arabia showed promising growth overall consumer spending saw a slight decline. The Saudi Central Bank's data highlights the dynamic shifts in spending patterns with certain sectors like clothing, hotels and electronics gaining traction despite broader economic cooling.