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Cash withdrawals in Saudi Arabia rise for first time in 5 years

cash withdrawals people shopping Saudi Arabia Alamy
In 2024 point of sale transactions for jewellery rose the most, surging 22%, followed by 19% for telecommunications and 8% for clothing
  • Withdrawals underpin spending
  • Consumers spend 7.5% more
  • Highest increase on jewellery

Cash withdrawals in Saudi Arabia in 2024 increased for the first time in five years, helping to underpin a rise in consumer spending, the local advisory company Jadwa Investment has reported.

Consumer spending in the largest Arab economy rose by nearly 7.5 percent for the year and the value of point of sale (POS) transactions – the place at which a retail transaction takes place – by almost 9 percent, Jadwa said in a report shared with AGBI. Cash withdrawals climbed 0.7 percent year on year.

“Spending shifted higher due to three factors, including (government) revenue overperformance, the kingdom’s ample fiscal space and the government’s policy priorities to accelerate economic diversification and improve the quality of public services and infrastructure,” Jadwa said.

Consumer spending on jewellery and telecommunications rose the most, Jadwa said, without giving figures.

By contrast, consumer spending the year before, 2023, climbed 7 percent to about SAR1.3 trillion ($328 billion), central bank figures show, suggesting an acceleration in 2024.

POS transactions swelled by about 10 percent that year to SAR614 billion, while cash withdrawals slipped by around 1 percent to a little below SAR549 billion, according to the central bank.

For 2024, POS transactions for jewellery rose the most, surging 22 percent, followed by telecommunications, clothing, transport and restaurants. Point of sale spending also went up in education, hotels, and food and beverage industries.

Improved consumer spending in 2024 coincided with higher than budgeted government revenue and spending for the year, finance ministry figures show. Revenue rose 1.4 percent and spending 4 percent year on year.

After slumping in 2019 on the back of lower oil exports – on which the Saudi government depends for the bulk of its revenue – GDP per capita hit among its highest levels in 2023 at $32,445. 

GDP per capita is expected to have roughly held steady last year at $32,247 and will climb to $33,117 this year, Jadwa said.

Saudi Arabia’s Purchasing Managers’ Index (PMI) score was 60.5 in January, up from 58.4 in December and its highest since September 2014.