Consumer spending in Saudi Arabia remained above $3 billion in the week ending October 17, though it registered a notable decline compared to the previous week, driven largely by a sharp drop in education-related transactions, according to data released by the Saudi Central Bank (SAMA).

Point-of-sale (POS) transactions totaled 12.60 billion Saudi riyals ($3.36 billion), marking a 6.8 percent decrease from the prior seven-day period. The total number of transactions fell by 2.7 percent to 246.42 million. Education-related spending experienced the most significant contraction, falling 50.9 percent week on week to 83.46 million riyals, accompanied by a 24.2 percent decrease in the number of related transactions.

Economist Talat Hafiz attributed the decline partially to ongoing regional geopolitical tensions, which may have influenced consumer behavior, particularly in travel-related sectors. He suggested that residents and citizens are opting to stay within the Kingdom due to its perceived stability and security amid regional uncertainties. Hafiz added that this may be leading to a cautious approach toward international travel and discretionary leisure expenditures. However, he expressed optimism that consumer spending patterns would normalize as regional tensions subside, emphasizing that the current shifts in spending reflect temporary responses to external factors rather than underlying economic weaknesses.

Sector-specific data showed that spending at gas stations was the highest, reaching 998.21 million riyals, followed by the transportation sector at 921.87 million riyals. Healthcare transactions amounted to 823.29 million riyals, down 6.7 percent from the previous week. Expenditures in professional and business services totaled 733.39 million riyals.

Discretionary spending categories experienced notable declines as well. Airline-related transactions decreased by 29.7 percent to 28.17 million riyals, with the number of transactions falling by 9.9 percent. Hotel spending dropped by 17.7 percent to 222.98 million riyals, while jewelry purchases declined 16.7 percent to 357.52 million riyals. Spending on books and stationery fell 14.1 percent week on week, amounting to 102.29 million riyals.

Geographically, Riyadh accounted for the largest share of POS transactions, with spending reaching 4.41 billion riyals, reflecting an 8.4 percent decrease from the previous week. The number of transactions in the capital similarly dropped by 4.8 percent to 81.60 million. Jeddah recorded POS spending of 1.67 billion riyals, a decline of 7.2 percent, with 27.47 million transactions conducted during the same period.

Overall, while Saudi consumer spending remains robust, the data indicates a temporary pullback influenced by external geopolitical dynamics and a decrease in education and travel-related expenditure.