Saudi Arabia’s Education Sector Sees Significant Growth Amidst Economic Slowdown
The education sector in Saudi Arabia experienced a notable surge in spending during the week ending March 8, with a significant increase of 144.6 percent to SR200.7 million ($53.5 million). This growth is all the more remarkable given the economic slowdown across various sectors in the kingdom.
Sectoral Breakdown
The education sector’s rise was a stark contrast to the decline experienced by other categories. According to data from the central bank, consumer spending across the kingdom contracted sharply, with total POS transactions falling 25.5 percent to SR13.09 billion. This decrease is attributed to various sectors experiencing significant declines in expenditure.
Leading Decliners
Among the leading decliners were furniture sales, which fell 38.7 percent to SR321.5 million. Electronics spending also slid 29.2 percent to SR159.1 million, while recreation and culture dropped 21.2 percent to SR266.5 million. The decline in these sectors was particularly pronounced, contributing significantly to the overall contraction in consumer spending.
Spending Patterns
Spending on food and beverages recorded a decrease of 38.1 percent to SR2.06 billion, accounting for the largest share of total POS value. Expenditure in restaurants and cafes followed closely, with a 38.3 percent decrease to SR1.29 billion. Miscellaneous goods and services ranked third, down 21.3 percent to SR1.66 billion.
Geographical Breakdown
Geographically, Riyadh dominated POS transactions, representing around 34.9 percent of the total, with expenses in the capital reaching SR4.58 billion—a 21.9 percent decrease from the previous week. Jeddah followed with a 24.4 percent dip to SR1.85 billion, and Dammam came in third at SR666.6 million, down 21.4 percent.
Regional Declines
Hail experienced the most significant decrease in spending, dipping by 36 percent to SR188.4 million. Abha and Tabuk followed, recording decreases of 30.4 percent and 28.57 percent, reaching SR139.7 million and SR239.4 million, respectively.
Transaction Volumes
Transaction volumes rose 7.6 percent to 116,000 across the education sector, after registering a 33.6 percent slump in the previous week. This growth was an exception among the various sectors, which generally experienced declines in transaction volumes.
Regional Declines in Transactions
Hail and Buraidah saw the largest decreases in terms of the number of transactions, slipping 27.2 percent and 23.4 percent, respectively, to 2.9 million and 4 million transactions.
Conclusion
In conclusion, the education sector’s surge in spending during the week ending March 8 was a notable exception amidst the economic slowdown across various sectors in Saudi Arabia. The sector’s growth is all the more remarkable given the decline experienced by other categories. As the kingdom continues to navigate its economic landscape, the education sector’s performance will undoubtedly be closely watched.
This article has been rewritten to provide a comprehensive and detailed analysis of the education sector’s growth amidst the economic slowdown in Saudi Arabia.