Overview:
Saudi Arabia's point-of-sale spending declined to 12.92 billion riyals in the week ending September 19, marking a 6.3 percent drop from the previous week and the third successive decline. Education expenditure fell 43 percent while furniture sales surged 11 percent, reflecting shifting consumer priorities. The Kingdom's real estate sector remains active with multiple development projects launched, while international economic headwinds persist.
Details:
Point-of-sale transactions across Saudi Arabia totaled 12.92 billion riyals during the period from September 13 to 19, continuing a downward trend across three consecutive weeks. Education spending posted the steepest decline at 43 percent, while furniture and home goods reversed course with an 11 percent increase. The contraction reflects typical post-national-holiday retail patterns following the Kingdom's 96th National Day celebrations.
In real estate development, the General Authority for Real Estate announced commencement of title registration for 22,937 properties across the Qassim and Riyadh regions, including 15,346 units in Qassim. Al-Saadoun Real Estate Company simultaneously launched a public auction for commercial and residential land plots within the Wurud Al-Taif development project in Taif city. The Ministry of Commerce conducted 14,529 field inspections across markets and commercial centers nationwide, recording 819 violations of national day discount regulations, underscoring regulatory focus on consumer protection compliance.
Internationally, crude oil prices recovered after previous weakness, with Brent futures climbing above 1 percent to 101.49 dollars per barrel as market volatility eased. Gold remained stable near 4,357 dollars per ounce, while the Saudi Arabia Tadawul Index closed marginally lower at 10,680.61 points on trading volume of 3.1 billion riyals.
Outlook:
Investors should monitor whether the three-week consumer spending decline represents seasonal normalization post-holiday or signals broader demand weakness. Real estate sector momentum, combined with active government regulatory oversight, suggests sustained policy support for residential and commercial development markets.