Saudi POS transactions surge 2.6% to $3.6bn, driven by education sector growth
Telecommunication spending rose 17.4% to SR136.5 million
Expenditure on furniture saw the largest decline, dropping 11.7% to SR349.3 million
Updated 09 October 2024
MIGUEL HADCHITY
RIYADH: Saudi Arabia’s point-of-sale transactions climbed 2.6 percent to SR13.7 billion ($3.6 billion) in the week ending Oct. 5, driven by a sharp increase in spending within the education sector, official data showed.
The latest figures from the Saudi Central Bank, also known as SAMA, showed that the education sector led the growth with a 96.8 percent surge in transactions, totaling SR196.8 million, following weeks of declines since the academic year started in August.
Telecommunication spending followed, rising 17.4 percent to SR136.5 million. The public utilities sector recorded the third-largest increase, with a 13.9 percent jump to SR61.5 million.
Expenditure on furniture saw the largest decline, dropping 11.7 percent to SR349.3 million during this period.
Spending on electronic devices fell 8.4 percent to SR238 million, while clothing and footwear saw a 7.4 percent decrease to SR757.3 million. Recreation and restaurant expenditures also declined by 2.4 percent and 1.9 percent, respectively.
These five sectors were the only ones to register declines, while the majority of industries experienced growth.
In terms of transaction value, the food and beverages sector retained the largest share of POS spending, totaling SR2.22 billion, followed by restaurants and cafes at SR1.95 billion, and miscellaneous goods and services at SR1.77 billion.
Spending in these top three categories accounted for approximately 43.3 percent, or SR5.9 billion, of the week’s total POS value.
Geographically, Riyadh led POS transactions, representing 34.3 percent of the total, with spending in the capital reaching SR4.71 billion, the second-highest increase at 4.7 percent.
Jeddah followed with a 2.2 percent rise to SR1.86 billion, accounting for 13.6 percent of the total. Dammam ranked third with SR697 million, recording the highest increase at 5.8 percent.
Tabuk saw the third-largest spending increase, up 4.2 percent to SR276.2 million. Hail and Abha also experienced growth, with expenditures rising 1.7 percent and 0.5 percent to SR224.6 million and SR168.6 million, respectively.
In terms of the number of transactions, Dammam saw the highest increase at 6.8 percent, reaching 9,112 transactions. Hail and Buraidah recorded the smallest increases at 2.9 percent each, with 4,046 and 4,964 transactions, respectively.
Saudi Arabia, Germany ink 200k-tonnes green hydrogen export deal
Updated 22 sec ago
Nadin Hassan
RIYADH: Saudi Arabia and Germany have signed an agreement to export 200k tonnes of green hydrogen annually from the Kingdom to Europe by 2030, strengthening their clean energy partnership.
The memorandum of understanding was inked between ACWA Power and the German energy trading company SEFE, and will see the Saudi company serve as the developer, investor, and primary operator of green hydrogen and ammonia production assets.
SEFE will act as a co-investor and key buyer and will be responsible for marketing the green hydrogen to its customers in Germany and Europe.
The deal was signed during a meeting between the Kingdom’s Minister of Energy Prince Abdulaziz bin Salman and German Minister of Finance Jorg Kukies.
The agreement is part of the ongoing Saudi-German Energy Dialogue, and focuses on green hydrogen production, processing, and transportation.
This aligns with Saudi Arabia’s strategic push for clean energy, reinforcing the initiative’s goal to advance collaboration in renewables and hydrogen technologies while solidifying the Kingdom’s role in the global energy transition.
During the meeting, both sides explored areas of mutual interest in the energy sector, particularly clean hydrogen initiatives, building on the MoU signed between the two nations in 2021. This marks a continuation of Saudi Arabia and Germany’s growing energy cooperation following the agreement.
“By combining ACWA Power’s proven expertise in green hydrogen production with SEFE’s extensive market knowledge, we are forming a strong partnership to deliver substantial quantities of green hydrogen to Germany and beyond,” Marco Arcelli, CEO of ACWA Power, said in a statement.
He added: “This is contributing to global decarbonization efforts, European security of supply by offsetting gas demand, and industrial demand preservation in Europe by making available the most competitive green energy.”
Egbert Laege, CEO of SEFE, described the partnership as perfectly embodying the firm’s dual ambition of securing Europe’s energy supply while driving the energy transition.
“By expanding our green hydrogen portfolio and investing in local production, we are equipping ourselves with solutions to help our customers achieve decarbonization,” he said.
Saudi Arabia is ramping up efforts to establish itself as a global leader in green hydrogen production and exports by leveraging its vast renewable energy resources, particularly solar and wind, which, due to its high solar irradiance, enable more efficient and cost-effective hydrogen production than countries like Germany.
Round table talks
Aside from the MoU signing, the German finance minister met with the Kingdom’s Minister of Finance Mohammed Al-Jadaan following a Saudi–German roundtable meeting in Riyadh.
In a post on X, Al-Jadaan said the two discussed “the most prominent global financial and economic developments.”
كما سررت اليوم بلقاء معالي وزير المالية الألماني الدكتور يورغ كوكيس، لمناقشة أبرز التطورات المالية والاقتصادية العالمية، وبحث المواضيع ذات الاهتمام المشترك.
I was also pleased today to meet with His Excellency the German Minister of Finance, Dr. Jörg Kukies, to discuss the most… pic.twitter.com/7QUKOEyH71
— محمد عبدالله عبدالعزيز الجدعان | Mohammed Aljadaan (@MAAljadaan) February 2, 2025
The roundtable was attended by a number of the largest private sector firms from both nations.
Saudi Arabia’s Ministry of Investment, National Center for Privatization, and the Financial Sector Development Program reviewed the investment opportunities available for German companies.
The roundtable also saw a focus on how human capital expertise in both conventional and renewable energy, and the industrial and manufacturing strength of Germany, are part of the ongoing relationship that contributes to achieving the goals of Vision 2030.
The German finance minister also held talks with the Saudi Minister of Economy and Planning Faisal Al-Ibrahim, with the pair discussing areas of economic, trade, and investment cooperation between the two countries, according to the Saudi Press Agency.
A further meeting involved the Kingdom’s Minister of Commerce Majid Al-Kassabi and Kukies, with the Saudi official posting on X that the pair talked about “strengthening the Kingdom’s economic and trade cooperation and developing promising opportunities in our two friendly countries.”
RLC Global Forum to address the future of Saudi Arabia’s retail landscape
Updated 03 February 2025
Nadin Hassan
RIYADH: Over 100 speakers from more than 600 organizations will convene at the Retail Leaders Circle Global Forum 2025 in Saudi Arabia to discuss collaboration amid digital innovation and economic reforms.
The two-day event, taking place from Feb. 4-5 at the Fairmont Hotel in Riyadh, will bring together industry executives, policymakers, and investors to explore strategies for navigating a rapidly changing retail landscape.
Themed “Rebuilding a Shared Future,” the event aims to address how the sector can rebuild trust and cooperation while adapting to digital transformation, shifting consumer behaviors, and new regulatory frameworks.
This year’s forum comes as Saudi Arabia’s retail sector continues to show strong resilience and sustained growth, with total sales reaching SR37.4 billion ($9.97 billion) in the third quarter of 2024, despite ongoing global economic uncertainties.
Retail sales in the Kingdom are forecast to reach $161.4 billion by 2028, according to data platform Statista, while the e-commerce sector is projected to surpass $13.2 billion by 2025.
“Saudi Arabia’s Vision 2030 is really shaking up the retail sector, and we’re seeing exciting changes across the board,” said Panos Linardos, chairman of the RLC Global Forum, in an interview with Arab News.
He pointed out that retail is a key pillar of the Kingdom’s diversification efforts, and “it’s evolving rapidly with digital transformation, regulatory changes, and shifting consumer expectations.”
Linardos added: “There’s a lot of opportunity ahead, but also some challenges that need to be tackled to fully unlock the sector’s potential. That’s where the RLC Global Forum comes in.”
RLC is an invitation-only platform that brings together industry leaders, policymakers, and innovators to discuss key issues shaping the retail sector.
Some of the partners involved include Diriyah Co., Apparel Group, and Cenomi Centers, the largest owner, operator, and developer of contemporary lifestyle centers in Saudi Arabia.
Chalhoub Group, and Panda Retail Co. are also set to attend.
Panos Linardos, chairman of the RLC Global Forum. Supplied
The event provides data-driven research, thought leadership, and best practice sharing, in line with Saudi Arabia’s Vision 2030, which seeks to diversify the economy and position the Kingdom as a global retail and business hub.
“Retailers in Saudi Arabia face several challenges, such as competition from cross-border e-commerce, changing consumer expectations, and regulatory complexities,” Linardo said.
To stay competitive, he added that retailers need to “embrace digital transformation, adopt omnichannel strategies, and use data to better understand and serve their customers.”
The Kingdom’s retail sector is experiencing significant growth and investment opportunities, driven by Vision 2030 and the accelerated digital transformation.
The demand for seamless shopping experiences and experiential retail concepts continues to rise, driving expansion in e-commerce, lifestyle destinations, and mixed-use developments.
“Mega-projects like NEOM, ROSHN, and Diriyah Gate are also fueling demand for high-end retail and hospitality-focused shopping experiences, making the market even more attractive,” Linardos said.
The forum chairman mentioned that the growing focus on smart retail solutions, AI-driven insights, and sustainable practices is creating new opportunities for forward-thinking investors.
Strengthening investment climate
Saudi Arabia’s retail sector continues to attract international investors, supported by progressive economic reforms and policies aimed at fostering a transparent and competitive market.
The Kingdom has made significant strides in streamlining regulations, enhancing investor protections, and reducing barriers to entry, creating an environment that encourages long-term growth and foreign direct investment.
“Saudi Arabia’s booming investment landscape is no accident. It’s the result of deliberate efforts to create a business-friendly and secure environment, supported by policies and reforms that align with global investment standards,” Linardos said.
He mentioned that the International Monetary Fund had described the new law as a game-changer, offering equal opportunities to both Saudi and foreign investors, along with stronger protections and clearer rules of engagement.
Linardos explained that the challenge now is getting the word out — building investor confidence and showcasing Saudi Arabia’s retail market as a high-potential, forward-thinking destination.
Future of retail innovation
The rapid integration of artificial intelligence, data analytics, and predictive modeling is transforming the global retail landscape, and Saudi Arabia is no exception.
RLC will also explore how businesses can leverage AI to optimize operations, enhance customer engagement, and drive new business models.
“Innovation and technology are reshaping Saudi Arabia’s retail sector in a big way. AI and e-commerce are no longer just buzzwords — they’re driving real change,” Linardos said.
He pointed out that AI is providing businesses with deeper insights into consumer behavior, enhancing inventory management, and enabling more personalized marketing.
“At the same time, e-commerce is making shopping more convenient and accessible, with digital payment solutions and omnichannel strategies creating seamless experiences that meet rising customer expectations,” Linardos added.
The chairman further highlighted that for retailers, integrating advanced technologies is no longer optional but a necessity in an increasingly competitive and fast-evolving market.
In essence, he added, businesses that embrace innovation early can unlock new growth opportunities, expand their customer reach, and strengthen their market position.
Unlocking full value
Saudi Arabia’s e-commerce sector is rapidly expanding, fueled by a digitally engaged population, rising consumer demand, and the government’s commitment to digital transformation, with Linardos noting the Kingdom’s emergence as one of the region’s most promising e-commerce markets.
Industry experts highlight the growing influence of social media, mobile commerce, and fintech solutions, which are reshaping how consumers shop and engage with brands.
“The Kingdom’s high social media engagement and widespread mobile use also make it a prime market for further e-commerce expansion and investment,” said Linardos.
However, he acknowledged that challenges persist, pointing out that “cross-border platforms dominate a large share of the market,” while traditional retail remains deeply embedded in consumer habits.
To fully realize Saudi Arabia’s e-commerce potential, industry leaders stress the importance of creating a balanced competitive landscape, strengthening omnichannel strategies, and integrating online and offline shopping experiences.
What’s next?
As Saudi Arabia’s retail sector undergoes transformation, Linardos expects the industry to move beyond traditional retail models in the coming years, placing greater emphasis on lifestyle-oriented concepts, integrated retail-tourism experiences, and cutting-edge digital innovations.
“The growth won’t just come from more stores or online platforms — it will come from creating unique, immersive experiences that blend culture, entertainment, and commerce in ways that haven’t been seen before in the region,” he added.
Linardos also explained that the challenge for retailers will be to remain flexible, embracing innovation while maintaining a strong local connection.
Those who can strike the right balance — leveraging technology, data, and customer insights — will not only grow but also redefine what retail means in Saudi Arabia, he said.
GCC equity markets post monthly gains in January: Markaz
Kuwait’s All Share Index posted a monthly gain of 5.7%, Saudi Arabia’s equity market grew 3.1%
Abu Dhabi’s equity index rose 1.8%, Qatar Stock Exchange increased by 0.9%
Updated 54 min 17 sec ago
Nirmal Narayanan
RIYADH: Equity markets in the Gulf Cooperation Council countries saw strong growth in January, with Kuwait and Saudi Arabia emerging as top performers, according to an analysis.
In its latest report, Kuwait Financial Center, also known as Markaz, said the substantial increase in the equity markets of Kuwait and the Kingdom pushed up the S&P GCC Composite Index by 3 percent last month.
Kuwait’s All Share Index posted a monthly gain of 5.7 percent in January, followed by Saudi Arabia’s equity market which grew by 3.1 percent during the same period.
The S&P GCC Composite Index’s performance in January was higher than the S&P 500 indices, which expanded at 2.7 percent, and the MSCI EM index, which posted a growth of 1.7 percent. The MSCI World Index grew by 3.5 percent.
GCC Markets: A Strong Start to 2025
Kuwait’s All Share Index soared 5.7% in January, fueled by robust banking earnings and strong investor confidence.
Saudi’s TASI climbed 3.1%, driven by optimism around corporate earnings and economic growth. @marmoremena#Markazpic.twitter.com/ejN2HcdwEP
“Kuwait equities outperformed global and GCC markets driven by the anticipation of strong earnings of banking stocks and the increased deal activity in the energy and real estate sectors, with most sectors closing the month in positive territory,” said Markaz.
Abu Dhabi’s equity index rose by 1.8 percent, Dubai’s index grew by 0.4 percent, and the Qatar Stock Exchange increased by 0.9 percent in January.
Bahrain’s index fell by 5.4 percent due to the decline of Aluminum Bahrain stock by 18.5 percent after officially terminating a proposed deal with the Saudi Arabian Mining Co.
Kuwait’s equity market growth was supported by the movement in key sectors like oil and gas and real estate, which expanded by 11.7 percent and 11.1 percent, respectively, according to the report.
Last month, Saudi Telecom Co. was the top gainer in Tadawul, with the company’s share price rising by 8.7 percent.
Gold surged 6.8% in January, as investors sought safe-haven assets amid market volatility.
STC Bank, the financial arm of stc Group, received a non-objection certificate from the Saudi Central Bank to commence its banking operations in the Kingdom.
STC Bank is the first licensed digital bank in the Kingdom and the latest approval aligns with the financial institution’s strategy to promote digital transformation and competitiveness within the banking sector while safeguarding monetary and financial stability, SAMA said in a press statement at the time.
Saudi Arabia’s Etihad Etisalat Co.’s share price surged by 8.4 percent, while the stock price of energy giant Saudi Aramco dipped by 0.9 percent due to a delay in phasing out OPEC+ cuts.
Markaz added that Brent crude oil closed the month at $76.8 per barrel, marking a 2.8 percent increase from December.
Interest rate policies will be a key market driver, with the Fed’s stance influencing liquidity flows into emerging markets.
“This move was driven by the US energy sanctions against Russian entities. Further clarity on (US President Donald) Trump’s trade policies, possible increase in production from the US, and the recovery of demand from China will determine the further course of oil prices,” said the report.
Gold prices also increased by 6.8 percent month on month, closing at $2,759.3 per ounce.
The analysis said that the outlook of global asset classes in the coming months could be shaped by Trump’s trade policies and possible changes in the US Fed’s rate cut trajectory.
“With China being in the crosshair of Trump’s tariffs, oil prices could take a hit if the demand recovery from China weakens. Weakness in oil prices could alter OPEC+ plans to unwind production cuts, which would in turn affect GCC economies and markets,” the report added.
Pakistan January consumer inflation eases to 9-year low
Inflation rate fell to 2.4% year-on-year in January, statistics bureau says
Inflation rate is down from a multi-decade high of around 40% in May 2023
Updated 54 min 3 sec ago
Reuters
KARACHI: Pakistan’s consumer inflation rate fell to its lowest in more than nine years, dropping to 2.4% year-on-year in January, the statistics bureau said on Monday.
Inflation has cooled significantly, easing from 28.3% in January 2024.
Consumer prices in January rose 0.2% from the month before, according to the Pakistan Bureau of Statistics.
The South Asian country, currently bolstered by a $7 billion facility from the International Monetary Fund (IMF) granted in September, is navigating an economic recovery. The IMF is set to review Pakistan’s progress by March, with the government and central bank expressing confidence about meeting its targets.
“Inflation is lower because of the statistical base effect, also supported by currency stability and lower food and energy prices,” said Adnan Sami Sheikh, assistant vice president of research at Pakistan Kuwait Investment Company.
Pakistan’s central bank cut its benchmark interest rate by 100 basis points to 12% last week, as inflation eases and growth looks set to pick up after 1,000 basis points of rate cuts over the last six months.
The State Bank of Pakistan has slashed rates from an all-time high of 22% last June, one of the most aggressive moves among central banks in emerging markets and exceeding its 625 bps of rate cuts in 2020 during the COVID-19 pandemic.
Pakistan’s consumer inflation rate fell to 4.1% in December, its lowest in more than six years, helped by favorable base effects. That was below the government’s forecast and down from a multi-decade high of around 40% in May 2023.
After the policy rate decision, central bank Governor Jameel Ahmad told a press conference that inflation would ease further in January but noted core inflation remained elevated.
He forecast full-year inflation in the year to June would average 5.5%-7.5%.
Umm Al Qura moves forward with IPO to fund $26bn Masar project in Makkah
Updated 03 February 2025
Miguel Hadchity
RIYADH: Saudi contractor Umm Al Qura for Development and Construction Co. is proceeding with an initial public offering on the main market to fund its SR100 billion ($26.6 billion) Masar Destination in Makkah.
According to a statement, the Capital Market Authority approved the company’s IPO application, allowing it to issue 130,786,142 new stocks, representing 9.09 percent of its post-capital increase shares.
Spanning 3.5 km, Masar is designed as a multi-use destination that will offer a variety of hospitality, residential, retail, and commercial spaces. The project will feature 41,000 keys across hotels, serviced apartments, and 9,000 residential units for sale.
“The net proceeds of the offering will be utilized to fund costs associated with land settlements, infrastructure, activation of the Masar destination and project financing expenditures; in addition to other general corporate expenditures, such as those relating to sales, marketing, administrative, operating and financing,” the statement said.
Masar’s retail and commercial elements will cover over 330,000 sq. meters, including a major shopping mall and retail centers. Additionally, the development will include a hospital, a mosque, office spaces, and transport infrastructure to enhance mobility and accessibility within Makkah.
Chairman of Umm Al Qura, Abdullah Saleh Kamel, said: “I am deeply grateful to our wise leadership for their efforts in supporting the development of Makkah in alignment with Vision 2030’s goals to accommodate the growing number of pilgrims and visitors.”
He added: “Our IPO offers institutional and retail investors a highly compelling opportunity to invest in the development of Masar, a landmark project in the Kingdom. As we look to the future, our listing will be a key step in executing our strategy to maximize shareholder value.”
Yasser Abuateek, CEO of Umm Al Qura, emphasized that the firm was established in 2012 to enhance Makkah’s urban and investment landscape through Masar.
“As we prepare to list on the Saudi Exchange, we are ready to begin a new era of accelerated growth, delivering against the ambitions of Vision 2030 to transform the residents and visitor experience in Makkah,” he said.
Abuateek described the IPO as “a vote of confidence” in the company’s track record of growth to date, as well as its “commitment to building state-of-the-art urban destinations that create unparalleled experiences.”
Umm Al Qura’s major shareholders include the Public Investment Fund, the General Organization for Social Insurance, and Dallah Al-Baraka Holding.
Masar is set to become another major destination for residents and visitors, with 99.77 percent of the key infrastructure work already completed.
As of June 30, the company holds a strong financial position, with a capital base exceeding SR13.1 billion and additional bank facilities of over SR14 billion. The IPO is expected to attract significant interest from investors, given Makkah’s growing importance as a global religious and tourism hub.
