Saudi Arabia’s point-of-sale (POS) transactions surged past the $4 billion mark in the final week of May 2025, driven by a sharp increase in consumer activity ahead of the Eid Al-Adha holiday. The spending boom reflects a seasonal uptick in consumer confidence and purchasing habits, as well as the Kingdom’s ongoing push towards a cashless economy.
According to data released by the Saudi Central Bank (SAMA), POS spending for the week ending May 25 recorded a total of SAR 15 billion ($4 billion) — marking one of the highest weekly spending volumes so far this year. Analysts attribute this surge to widespread demand across retail, hospitality, food and beverage, and fashion sectors, as families prepare for the festive season.
Holiday Momentum Drives Consumer Spend
Eid Al-Adha, one of the most significant religious holidays in the Islamic calendar, traditionally brings a wave of consumer activity, particularly in food preparation, gift-giving, travel, and wardrobe purchases. This year’s figures show a notable increase not just in volume but also in transaction frequency, signaling a vibrant retail environment.
Clothing and footwear outlets saw a 14% week-on-week increase, while spending on food and beverages jumped by 11%, according to SAMA’s report. Electronics and household goods also reported significant sales growth as consumers prepared for hosting family gatherings and exchanging gifts.
Restaurants, cafes, and dining establishments accounted for a large chunk of the increase, with many offering promotional deals and festive menus. POS transactions in the food and beverage sector alone exceeded SAR 2.3 billion ($613 million) for the week, reflecting both dine-in and takeaway service demand.
Tourism and Hospitality Benefit from Eid Travel
The hospitality sector also witnessed strong performance, driven by domestic travel and pilgrimage preparations. Hotels and accommodation services saw POS spending rise sharply as residents and pilgrims booked stays in Mecca and Medina. With the Ministry of Hajj and Umrah forecasting record attendance for this year’s Eid, spending on travel-related services — including transport, hotel bookings, and religious supplies — saw a combined increase of over 18%.
Airlines, car rentals, and ride-hailing services similarly benefited from the surge, reflecting the growing mobility of both local citizens and foreign visitors.
Digital Payments Continue to Dominate
The latest figures further underscore the Kingdom’s rapid shift towards digital transactions and cashless ecosystems, in line with Vision 2030’s goals. Over 95% of the recorded POS transactions were carried out via debit or credit cards, NFC mobile wallets, and wearable devices, reflecting deep market penetration of fintech and digital payment platforms.
“The seasonal spike in POS transactions demonstrates the success of Saudi Arabia’s digital transformation in retail,” said a Riyadh-based financial analyst. “What used to be cash-heavy festive spending is now being captured in real-time through data-rich, trackable transactions — giving policymakers and businesses invaluable insight into consumer behavior.”
Retailers Optimistic Ahead of Eid Al-Adha
With Eid Al-Adha set to begin on the evening of Sunday, June 15, retailers across the Kingdom are gearing up for one of their busiest periods. Many brands have launched Eid promotions and flash sales, while malls and shopping centers have extended hours to accommodate the shopping rush.
Retail groups such as Jarir, Panda, Extra, and Othaim have reported stronger-than-expected performance in the final two weeks of May, bolstered by both online and in-store sales. E-commerce platforms like Noon and Amazon.sa are also seeing a bump in orders as consumers opt for the convenience of delivery amid the festive rush.
Economic Implications: A Pulse on Recovery and Growth
The $4 billion in POS spending is more than just a seasonal statistic — it is a barometer of the Kingdom’s post-pandemic economic recovery and the resilience of its consumer sector. It also aligns with growing GDP forecasts and non-oil sector expansion in Q2 2025.
With consumer sentiment on the rise and inflation relatively under control, the Eid Al-Adha period could act as a launchpad for continued growth into the summer months, particularly in retail, entertainment, and services.
As Saudi Arabia continues to diversify its economy and promote digital financial infrastructure, robust consumer spending — especially during key cultural and religious moments — remains a crucial driver of economic momentum.
