Saudi POS spending reaches $3.78bn, driven by surge in utilities and jewelry

Saudi POS spending reaches $3.78bn, driven by surge in utilities and jewelry
Jewelry sales recorded the second-largest growth, rising 8.2 percent to SR288.13 million. Shutterstock
Short Url
Updated 18 December 2024
Follow

Saudi POS spending reaches $3.78bn, driven by surge in utilities and jewelry

Saudi POS spending reaches $3.78bn, driven by surge in utilities and jewelry
  • Spending on public utilities rose by 11.5% to SR63.32 million
  • Total POS transactions in the Kingdom reached SR14.22 billion, a 0.7% decrease from the previous week

RIYADH: Saudis have increased their spending on utilities and jewelry during the first week of December, while food and beverage sales showed a slight decline, according to the latest data from the Saudi Central Bank. 

In the week from Dec. 1 to 7, spending on public utilities rose by 11.5 percent to SR63.32 million ($16.85 million), driven by higher demand for essential services. The sector also saw a rise in transactions, which climbed 4.9 percent to SR803,000. 

Data from the weekly point-of-sale reports showed that jewelry sales recorded the second-largest growth, rising 8.2 percent to SR288.13 million, followed by an uptick in spending on construction materials, which grew by 4.4 percent to SR382 million. 

Total POS transactions in the Kingdom reached SR14.22 billion, a 0.7 percent decrease from the previous week. 

This comes as spending on food and beverages experienced a modest decline. Expenditures fell by 0.8 percent to SR2.20 billion, still maintaining the largest share of total POS value. Restaurant and cafe spending also dipped by 1.4 percent to SR1.97 billion, representing the second-largest category by value. 

Certain sectors saw positive growth, such as electronics, which rose by 2.1 percent to SR221.30 million, and miscellaneous goods and services, which jumped by 3.5 percent to SR1.76 billion. 

Telecommunications spending declined by 3.1 percent, amounting to SR138.84 million. Health sector spending remained relatively flat with a 0.6 percent increase, reaching SR867.53 million. Furniture expenditures grew by 1.5 percent to SR348.52 million, marking the second-smallest increase. 

Riyadh accounted for the largest share of POS transactions, making up 34.7 percent of the total with SR4.94 billion in spending, though this was down 1.1 percent compared to the previous week. 

Jeddah saw a 3.1 percent increase, reaching SR1.92 billion, while Dammam recorded a slight decline of 0.1 percent to SR719.3 million. 

Among smaller cities, Tabuk saw the steepest drop in spending, down 5.1 percent to SR281 million, followed by Hail and Abha, which declined by 2.9 percent to SR234.71 million and 1.3 percent to SR166.55 million, respectively. 

In terms of transaction volumes, Makkah and Jeddah experienced the most significant increases, with transaction numbers up 3.8 percent and 2.3 percent, respectively. Makkah recorded 8.97 million transactions, while Jeddah saw 26.31 million. 

Hail and Tabuk reported the largest decreases, with transactions falling by 1.5 percent 3.93 million and 1.1 percent 4.82 million, respectively. 


OPEC sticks to 2025, 2026 global oil demand growth forecasts

OPEC sticks to 2025, 2026 global oil demand growth forecasts
Updated 10 sec ago
Follow

OPEC sticks to 2025, 2026 global oil demand growth forecasts

OPEC sticks to 2025, 2026 global oil demand growth forecasts

LONDON: OPEC on Wednesday stuck to its forecast for relatively strong growth in global oil demand in 2025, saying air and road travel would support consumption and potential trade tariffs were not expected to impact economic growth.

In a monthly report, it said world oil demand will rise by 1.45 million barrels per day in 2025 and by 1.43 million bpd in 2026. Both forecasts were unchanged from last month.

OPEC’s view on oil demand is at the higher end of industry forecasts and it expects oil use to keep rising in coming years, unlike the International Energy Agency which see demand peaking this decade as the world switches to cleaner fuels.

In the report, OPEC said the trade policy of US President Donald Trump has added more uncertainty into markets, potentially creating supply-demand imbalances that are not reflective of market fundamentals, but it made no change to its 2025 economic growth forecast.

“It remains to be seen how and to what extent potential tariffs and other policy measures will play out,” OPEC said in the report. “So far, they are not anticipated to materially impact the current underlying growth assumptions.”

Oil was steady after the OPEC report was released with Brent crude trading lower towards $76 a barrel.

The IEA sees 2025 demand growth at 1.05 million bpd, lower than OPEC, although the gap between the two on 2025 is much smaller than it was for 2024 when the split reached a record high driven by differences over the pace of the energy transition.

OPEC+, which groups OPEC and allies such as Russia, has implemented a series of output cuts since late 2022 to support the market. Its current plan calls for oil output to be gradually increased from April.


Ma’aden to test data from Aramco warehouses to inform new mines plan

Ma’aden to test data from Aramco warehouses to inform new mines plan
Updated 29 sec ago
Follow

Ma’aden to test data from Aramco warehouses to inform new mines plan

Ma’aden to test data from Aramco warehouses to inform new mines plan

RIYADH: The Saudi Arabian Mining Co., or Ma’aden, will analyze terabytes of data from Aramco’s warehouses as part of its efforts to build two mines, its CEO revealed. 

In a discussion titled “Ma’aden: Saudi Arabia’s Mining Industry Pioneer” on the first day of the Public Investment Fund Private Sector Forum, taking place from Feb. 12-13 in Riyadh, Robert Wilt explained that the company intends to test the core samples using artificial intelligence as part of its 2025 key performance indicators. 

This falls in line with the Kingdom’s goal to increase the mining industry’s gross domestic product contribution from $17 billion to $75 billion by 2035.

It also aligns well with Saudi Arabia’s efforts to establish mining as the third pillar of the nation’s industrial economy.

“We are in the process of finalizing the joint venture with Aramco to partner together to explore all of the Arabian platform. Our efforts to date have been focused on the Arabian Shield. Aramco has been exploring the platform for oil and gas now for 80 some years. They’ve got, I can’t tell you how many terabytes of data and core samples in warehouses as big as this hall that have not been tested for minerals,” Wilt said. 

“Another one of our KPIs this year is to find two mines by mining that data using artificial intelligence. So, we’re throwing technology, AI, digitization, and innovation across everything from exploration all the way through processing to reduce costs, make it more sustainable, and most of all for us is acceleration,” he added. 

 During the talk, the CEO also shed light on the fact that Ma’aden is utilizing 72 percent of its exploration budget this year on copper. 

This comes as the company has not “really spent as much time looking for the energy transition metals and some of the other minerals that we know are here,” Wilt said. 

He added: “Just this year, we’ve announced two or three major gold discoveries and we’re on the precipice of announcing two copper discoveries. So, I can tell you the minerals are here and it’s just up to us to get them out of the ground, to extract them sustainably, safely, responsibly.” 

The CEO also emphasized that the firm is only 10 to 15 years old and that it is already the third-largest exporter of phosphate fertilizers.

“We’re the fastest growing mining company in the world for the last five years and we’re the eighth-most valuable mining company in the world by market capitalization. So, a meteoric rise over the last decade and a half,” Wilt said.

He added: “We need to make this thing 10 times bigger by 2040. So, the aspiration is to not be one of the most valuable mining companies in the world — has to be the most valuable mining company in the world. It is to feed more than 10 percent of the world’s population; it is to provide the metals and minerals required for the downstream diversification across the Kingdom, whether it’s aluminum, copper, lithium, zinc.”

The CEO noted that the company estimates that there are $2.5 trillion worth of reserves buried in the sands of Saudi Arabia. 

“If you look at the $2.5 trillion, 45 percent of its phosphate, and we know where that is. We’re already mining it; we’re already producing it. It’s the biggest part of our business,” Wilt said.

“But then some of the exotic minerals like rare earth elements, you know, we’re close to being able to talk about that publicly. There’s a lot of interest in the Kingdom for some from some near-stage discoveries where we’re making there, so I would say probably 60 percent has been actively explored, and then the 40 percent we’ve got to accelerate through to the pipeline,” he added.

The forum, which will unite more than 90 PIF-backed companies, seeks to strengthen supply chains, boost local manufacturing, and accelerate economic diversification under Vision 2030.  

Now in its third year, the event will spotlight business opportunities with the sovereign wealth fund and its portfolio companies, identify potential prospects for investors and suppliers, and expand avenues for collaboration. It will also serve as a bridge between PIF, its portfolio companies, and the private sector, reinforcing localization efforts.


$53bn private sector investment powering Saudi Arabia’s urban development

$53bn private sector investment powering Saudi Arabia’s urban development
Updated 6 min 28 sec ago
Follow

$53bn private sector investment powering Saudi Arabia’s urban development

$53bn private sector investment powering Saudi Arabia’s urban development

RIYADH: The private sector is playing a pivotal role in Saudi Arabia’s urban development, with 65 local developers collectively investing over SR200 billion ($53.32 billion) in the housing sector, according to Saudi Minister of Municipalities and Housing Majid Al-Hogail.

The housing sector in the Kingdom has experienced significant transformation in recent years, driven by the ambitious goals outlined in Vision 2030.

Under this initiative, Saudi Arabia’s real estate landscape is evolving—from affordable housing projects to luxury living developments—reflecting the broader changes brought by the Vision 2030 reform agenda.

Speaking at the third PIF Private Sector Forum in Riyadh on Wednesday, Al-Hogail emphasized the ongoing urban transformation and the private sector's crucial role in driving it. “There are now over 600 regional hubs, coupled with economic diversification and a rapidly growing urban population,” he noted.

Vision 2030 prioritizes affordable housing and improved living standards for Saudi citizens, which Al-Hogail believes requires a redefinition of urban planning. “We must redefine the concept of the city in alignment with these economic transformations and diverse needs to ensure sustainability. This is where the concept of sustainability becomes essential.”

The minister also revealed that the municipal and housing sectors contributed more than 16 percent to Saudi Arabia’s real gross domestic product in 2024, with the real estate, construction, and building sectors receiving nearly 16 percent of total foreign investment inflows.

“In 2024, we completed three local plans, and by 2025, in partnership with the Authority Support Center, we aim to finalize over 33 master plans to accommodate the evolving needs of our cities,” Al-Hogail added.

The growing urban population in Saudi cities is driving a surge in housing demand. From July 2023 to July 2024, residential transactions in Riyadh alone increased by 51.6 percent, totaling 18,500 sales valued at SR26.6 billion, according to a report from real estate services firm CBRE.

“The hardest part—establishing the framework, legislation, and incentive programs—is now behind us. Momentum is accelerating rapidly,” Al-Hogail said.

He continued: “Today, we believe the Kingdom’s investment environment has reached a favorable stage, based on our engagement with both local and international private sectors. There are still substantial opportunities for further development.”

Al-Hogail also highlighted the significant growth in real estate financing, with the banking sector’s real estate financing portfolio rising from SR165 billion to over SR850 billion in a short period. “This shows how the private sector, when provided with a stimulating and supportive environment, can achieve remarkable growth,” he concluded.


Riyadh Air targets digital innovation, global expansion

Riyadh Air targets digital innovation, global expansion
Updated 18 min 5 sec ago
Follow

Riyadh Air targets digital innovation, global expansion

Riyadh Air targets digital innovation, global expansion

RIYADH: Riyadh Air is enhancing the travel experience by leveraging digital technology to simplify bookings and airport procedures, catering to Saudi Arabia’s young and tech-savvy population, its CEO said. 

Speaking at the Public Investment Fund Private Sector Forum, Tony Douglas highlighted Saudi Arabia’s young population, noting its high iOS usage per capita and strong digital-native environment. 

Expected to start operations later this year, the new national carrier — backed by Saudi Arabia’s Public Investment Fund — aims to connect over 100 international cities by 2030 and contribute more than $20 billion to the Kingdom’s economy. 

“We are a new airline unencumbered by legacy,” Douglas said, emphasizing Riyadh Air’s digital-first approach. He compared the airline’s booking experience to e-commerce platforms like Noon.com and Amazon, allowing passengers to bundle multiple tickets in a single transaction. 

Riyadh Air is also exploring biometric verification to replace traditional travel documents. 

“Your face is the transaction receipt. Going forward, the face will be the ticket when you go through the airport,” Douglas said. “Your face then becomes your passport.” 

By integrating facial recognition into airport processes, Riyadh Air aims to streamline passenger journeys and set a new benchmark for digital transformation in aviation. 

The airline has already secured major partnerships, including a deal with Delta Air Lines. Douglas highlighted the speed of the agreement, noting that Delta’s CEO Ed Bastian finalized the partnership within 30 days of visiting Saudi Arabia — an unprecedented timeline in the industry.  

He said the warmth of the Kingdom and the opportunity here played a key role, adding: “We want to bring as many people here directly as possible so they can see for themselves.” 

Riyadh Air has also partnered with Singapore Airlines, known for its industry-leading customer service. 

“We did it again to set the bar absolutely where it should be, with the Kingdom’s new national carrier, working with the global A-listers,” Douglas noted. 

The airline is making significant local investments, including a SR2.3 billion ($613.2 million) catering contract with CATRION and a fuel and sustainability deal with Aramco. 

Riyadh Air’s fleet expansion is underway, with its first Boeing 787-9 Dreamliner, Jamila, set to be joined by additional aircraft later this year.  

“We’re currently engaged in what we would call an extra wide-body campaign,” Douglas said, hinting at an upcoming aircraft order announcement in the second quarter of this year. 

The airline is also prioritizing Saudi talent, with plans to recruit tens of thousands of pilots, cabin crew, and support staff. 

“Wherever possible, where it’s capability driven and commercially appropriate, we will always favor going Saudi first,” Douglas said.   

He positioned Riyadh Air as a key enabler of Saudi Arabia’s Vision 2030, aiming to improve global connectivity and facilitate international business and tourism.   

“Importantly, we want to connect all of you, your friends, your family, your colleagues, to the world, and of course, for the world to have better connectivity to the Kingdom of Saudi Arabia,” he said. 


Private sector to drive 80% of Saudi Arabia’s transport, logistics growth

Private sector to drive 80% of Saudi Arabia’s transport, logistics growth
Updated 43 min 25 sec ago
Follow

Private sector to drive 80% of Saudi Arabia’s transport, logistics growth

Private sector to drive 80% of Saudi Arabia’s transport, logistics growth

RIYADH: Saudi Arabia’s Minister of Transport and Logistic Services Saleh Al-Jasser has predicted that 80 percent of the targeted investments in the country’s transport and logistics sector will come from the private sector.

Speaking at the third PIF Private Sector Forum in Riyadh, Al-Jasser emphasized the crucial role of the private sector, announcing that new agreements worth over SR18 billion ($4.8 billion) have been signed with private companies in the port and maritime industries.

“The private sector is a vital partner in developing the transport and logistics system, and this partnership continues to grow and strengthen,” Al-Jasser remarked. He also mentioned that four major road projects are currently being offered to the private sector.

Air transport has shown significant growth, with an increase of 15 percent last year and around 26 percent in 2023.

Al-Jasser highlighted the ongoing expansion of Madinah airport, noting that the private sector is overseeing the entire capacity expansion.

“The private sector is responsible for the construction, operation, and management of this project,” he explained.

The minister also drew attention to upcoming privatization plans for Abha, Taif, Hail, and Qassim airports, as well as additional road projects.

“The total value of opportunities that will be made available through partnerships with the private sector—whether through privatization or other models—amounts to SR240 billion in the transport and logistics sectors,” Al-Jasser added.

He concluded by noting that private sector participation in the transport system is already substantial, with many operations under private management.