Saudi Arabia’s POS transactions fluctuate in early September to reach $3.5bn

Saudi Arabia’s POS transactions fluctuate in early September to reach $3.5bn
Saudis spent SR209.8 million on electronic and electric devices and SR1.92 billion at restaurants and cafes. ShutterstockSaudis spent SR209.8 million on electronic and electric devices and SR1.92 billion at restaurants and cafes. Shutterstock
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Updated 20 November 2024
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Saudi Arabia’s POS transactions fluctuate in early September to reach $3.5bn

Saudi Arabia’s POS transactions fluctuate in early September to reach $3.5bn
  • Spending in the education sector led the dip, recording the highest decrease at 43.6%
  • Spending on public utilities saw the second-largest decline at 25.1%

RIYADH: Saudi Arabia’s point-of-sale transactions dipped in the first week of September, dropping by 4.9 percent from the previous week to reach SR13.3 billion ($3.5 billion), with the education sector leading the decline.

The latest figures from the Saudi Central Bank, also known as SAMA, showed that spending in the education sector led the dip, recording the highest decrease at 43.6 percent, with total transactions reaching SR350 million.

This week marks the third time in a row the education sector witnessed a decrease in spending after surging for four consecutive weeks, coinciding with the start of the academic year on Aug. 18.

During the first week of September, spending on public utilities saw the second-largest decline at 25.1 percent to SR59 million.

Spending on culture and recreation recorded the third biggest dip with a 12.2 percent negative change, reaching SR293.4 million. 

Expenditure on miscellaneous goods and services recorded the smallest decline at 0.7 percent, reaching SR1.57 billion during this period. 

Saudis spent SR209.8 million on electronic and electric devices and SR1.92 billion at restaurants and cafes. These two sectors experienced the second and third smallest declines, dropping 0.8 percent and 1.3 percent, respectively.

Looking at the biggest value of transactions this week, the food and beverages sector saw the biggest share of the POS at SR2.10 billion, followed by restaurants and cafes and miscellaneous goods and services.

Spending in the top three categories accounted for 41.98 percent or SR5.6 billion of this week’s total value.

The most significant increase, at 7.8 percent, occurred in spending on jewelry, boosting the total to SR247.8 million. Expenditures on furniture came in second place, surging by 5.4 percent to SR309.3 million. In third place, hotel spending increased by 3 percent to SR245.3 million.

Geographically, Riyadh dominated POS transactions, representing 34.1 percent of the total, with spending in the capital reaching SR4.55 billion — a 4.6 percent decrease from the previous week. 

Jeddah followed with a 5 percent decline to SR1.82 billion, accounting for 13.6 percent of the total, and Dammam came in third at SR662.1 million, down 4.2 percent.

Tabuk saw the most significant decrease in spending, down by 9.9 percent to SR265 million. Buraidah and Abha also experienced downsticks, with expenditure dipping 7.9 percent and 7.7 percent to SR309.1 million and SR176.5 million, respectively.

In terms of the number of transactions, Makkah recorded the highest increase at 1.9 percent, reaching 8.6 million. Tabuk recorded the highest decrease at 2.7 percent, reaching 4.8 million transactions.


Egypt approves largest economic support package for SMEs worth $100.8m

Egypt approves largest economic support package for SMEs worth $100.8m
Updated 34 sec ago
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Egypt approves largest economic support package for SMEs worth $100.8m

Egypt approves largest economic support package for SMEs worth $100.8m

RIYADH: Entrepreneurs in Egypt’s priority sectors will soon gain access to affordable financing, as the 2025/2026 state budget earmarks 5 billion Egyptian pounds ($100.8 million) to support micro, small, and medium-sized enterprises.

This partnership between the North African country’s Ministry of Finance and the Micro, Small, and Medium Enterprises Development Agency, which accounts for the largest economic support in the new budget, represents a significant step in bolstering the private sector and productive industries, according to a statement.

This move supports financial policies that boost private sector activity and promote entrepreneurship, aiming for financial sustainability while enhancing MSMEDA’s contribution to business growth nationwide.

It also aligns with recent data showing that startups across the Middle East and North Africa raised $289 million through 44 deals in May, a 25 percent increase from April and a 2 percent rise year-on-year. Egypt led regional fundraising with $125 million, driven by Nawy’s $75 million round alongside seven other deals totaling $50 million.

The newly released ministry statement said the money “will contribute to providing easy financing for young entrepreneurs, targeting priority sectors more closely.”

It added: “This comes as part of a new phase of strong and effective cooperation with the agency, aiming to achieve financial sustainability for the agency to drive economic growth.”

The statement further revealed that Egypt’s Finance Minister Ahmed Kouchouk noted that an initial agreement with MSMEDA has been reached to fund initiatives that support tax relief beneficiaries, promote entrepreneurship, and boost local manufacturing, as well as empower low-income households and advance export-focused projects.

Kouchouk added that this fiscal year, the initial group of businesses enrolling in the simplified and unified tax system would receive access to preferential, low-cost financing.

Basel Rahmi, CEO of MSMEDA, commended the Ministry of Finance’s efforts to back emerging businesses and boost private-sector expansion.

Rahmi praised the minister’s proactive vision, noting it would open doors for empowering young entrepreneurs economically.

In June, a statement issued by the Ministerial Group for Entrepreneurship indicated that Egypt’s startup ecosystem saw notable progress in securing venture capital and debt financing in the first five months of the year, with tracked deals totaling $228 million since January.

The statement further revealed at the time that 16 deals were completed between January and May, with 11 of them publicly disclosing investments amounting to $156 million. These investments represented a 130 percent rise compared to the volume during the same period last year.


Oil Updates — prices edge up, investors eye Trump statement on Russia

Oil Updates — prices edge up, investors eye Trump statement on Russia
Updated 14 July 2025
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Oil Updates — prices edge up, investors eye Trump statement on Russia

Oil Updates — prices edge up, investors eye Trump statement on Russia

SINGAPORE: Oil prices nudged higher on Monday, adding to gains of more than 2 percent from Friday, as investors eyed further US sanctions on Russia that may affect global supplies, but a ramp-up in Saudi output and ongoing tariff uncertainty limited gains.

Brent crude futures rose 21 cents, or 0.3 percent, to $70.57 a barrel by 09:51 a.m. Saudi time, extending a 2.51 percent gain on Friday. US West Texas Intermediate crude futures climbed 20 cents, 0.3 percent, to $68.65, after settling 2.82 percent higher in the previous session.

US President Donald Trump said on Sunday that he will send Patriot air defence missiles to Ukraine. He is due to make a “major statement” on Russia on Monday.

Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress in ending the war in Ukraine and Russia’s intensifying bombardment of Ukrainian cities.

In a bid to pressure Moscow into good-faith peace negotiations with Ukraine, a bipartisan US bill that would hit Russia with sanctions gained momentum last week in Congress, but it still awaits support from Trump.

EU envoys are on the verge of agreeing an 18th package of sanctions against Russia that would include a lower price cap on Russian oil, four EU sources said after a Sunday meeting.

Last week, Brent rose 3 percent, while WTI had a weekly gain of around 2.2 percent, after the International Energy Agency said the global oil market may be tighter than it appears, with demand supported by peak summer refinery runs to meet travel and power generation.

However, ANZ analysts said price gains were limited by data showing Saudi Arabia lifted oil output above its quota under the Organization of the Petroleum Exporting Countries and allies' supply agreement.

The IEA said Saudi Arabia exceeded its oil output target for June by 430,000 barrels per day to reach 9.8 million bpd, compared with the Kingdom’s implied OPEC+ target of 9.37 million bpd.

Saudi Arabia’s energy ministry said on Friday that it had been fully compliant with its voluntary OPEC+ output target, adding that Saudi-marketed crude supply in June was 9.352 million bpd, in line with the agreed quota.

China’s June oil imports increased 7.4 percent to 49.89 million tonnes from a year earlier, equivalent to 12.14 million barrels per day, reaching the highest daily rate since August in 2023, according to customs data released on Monday.

China is likely to continue stockpiling, but with storage at 95 percent of the peak inventory build from 2020, these inventories are likely to emerge in “visible” Western market locations that are crucial for price formation, exerting downward pressure on prices, JP Morgan’s research team said in a client note.

Investors are also eyeing the outcome of US tariff talks with key trading partners that could impact global economic growth and fuel demand.


Saudi financial ecosystem hits $267bn milestone in 2024 in line with Vision 2030

Saudi financial ecosystem hits $267bn milestone in 2024 in line with Vision 2030
Updated 6 min 24 sec ago
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Saudi financial ecosystem hits $267bn milestone in 2024 in line with Vision 2030

Saudi financial ecosystem hits $267bn milestone in 2024 in line with Vision 2030
  • FSDP annual report highlights booming fintech, capital market growth, and strengthened investor confidence
  • Foreign investor holdings surge 501 percent since 2017, while financial literacy and inclusion gain ground

RIYADH: Saudi Arabia’s financial ecosystem reached a record SR1 trillion ($267 billion) in locally managed assets in 2024, marking a significant milestone in its transformation under Vision 2030.

This achievement, highlighted in the Financial Sector Development Program’s annual report, underscores the Kingdom’s accelerating shift toward a diversified, innovation-driven economy.

The Kingdom’s financial sector recorded exceptional growth in 2024, with fintech firms reaching 261, venture capital investment in the sector exceeding SR7.6 billion, and gross written premiums in insurance climbing to SR76.1 billion.

Saudi Finance Minister Mohammed Al-Jadaan, also chairman of the Financial Sector Development Program Committee, emphasized that the program continues to deliver on its promise of sustainable success.

He said the FSDP is building an economic future that solidifies Saudi Arabia’s regional and international standing while reflecting the rapid development across all sectors in this prosperous era.

The FSDP has implemented a wide range of reforms and initiatives to build a robust, diversified, and inclusive financial system. The program has helped to strengthen the Kingdom’s regional and global economic standing while enabling innovation, job creation, and investment growth.

Fintech emerged as a key success story in 2024, with the number of operating companies surpassing initial targets and contributing to the creation of over 11,000 direct jobs. The Saudi Central Bank licensed D360 Bank to begin operations, and electronic payments accounted for 79 percent of total retail transactions — underscoring the shift toward a cashless economy. The year also saw the launch of FinTech2024, the Kingdom’s first international fintech conference.

Capital markets continued their upward trajectory. With 44 new listings, the number of publicly traded companies reached 353. Locally managed assets grew 169 percent compared to 2017, reaching SR1 trillion, while foreign investor holdings jumped by 501 percent over the same period to SR420 billion.

Notable developments included the introduction of the TASI 50 index, single-stock options, Real Estate Investment Certificates, and the listing of Saudi ETFs in Tokyo, Shanghai, and Shenzhen. The Capital Market Authority also launched the Kingdom’s Green Finance Framework to encourage sustainable investment.

In the debt capital market, the CMA unveiled a strategic roadmap and issued the first license for an alternative trading system. The Kingdom successfully conducted its first international dollar bond issuance under the Government’s Global Bond Program, attracting approximately $30 billion in orders.

Meanwhile, the government introduced “Sah,” a savings product aimed at fostering a culture of personal saving. Credit rating agencies Moody’s, Fitch, and S&P issued upward revisions to Saudi Arabia’s sovereign credit ratings in response to the country’s fiscal discipline and financial reforms.

The insurance sector also posted strong performance. Gross written premiums rose 16.3 percent from 2023 to reach SR76.1 billion, while net profits increased by 12.5 percent to SR3.6 billion. The Insurance Authority mandated the Saudization of all insurance product sales roles and launched a Regulatory Sandbox to support startup innovation. The number of licensed InsurTech firms rose by 56 percent. New digital services included automated motor insurance, simplified claims processes, and TELEMATICS—a unified platform for tracking driver behavior.

The finance minister noted that the progress reflected in the report underscores the Kingdom’s broader development efforts under the leadership of King Salman and Crown Prince Mohammed bin Salman.

Support for small and medium enterprises remained a cornerstone of financial sector development. Saudi startups attracted SR2.8 billion ($750 million) in venture capital, maintaining the Kingdom’s lead in the MENA region. The share of bank credit to SMEs increased from 8.4 percent in late 2023 to 9.4 percent by the end of 2024.

The SME Bank disbursed over SR1.5 billion in financing to 1,029 enterprises, while the Kafalah program facilitated SR107.2 billion in financing guarantees—advancing the Vision 2030 target for SMEs to contribute 35 percent of GDP.

On the regulatory front, the FSDP advanced significant legislative reforms to enhance transparency, competitiveness, and investor protection. Updates included new principles for finance and real estate refinance companies, revisions to debt crowdfunding rules, and regulatory changes to real estate financing. The CMA also approved omnibus accounts and relaxed conditions for debt offerings, further liberalizing capital markets.

Financial literacy and capability development remained a key focus. The Financial Academy trained more than 59,000 participants through its programs since inception. The third edition of the Gulf Smart Investor Award continued to raise awareness of personal finance, while the “Malee” program began measuring and promoting financial literacy among children aged 8 to 12.

Looking ahead, the Financial Sector Development Program aims to build on this momentum in 2025 by aligning with global standards, expanding financing options, increasing financial inclusion, and deepening capital market participation. As outlined in its annual report, the FSDP remains committed to fostering innovation, enhancing regulatory efficiency, and driving sustainable growth to realize the full ambitions of Saudi Vision 2030.


Saudi Arabia issues over 1,300 new industrial licenses in 2024: Ministry report

Saudi Arabia issues over 1,300 new industrial licenses in 2024: Ministry report
Updated 13 July 2025
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Saudi Arabia issues over 1,300 new industrial licenses in 2024: Ministry report

Saudi Arabia issues over 1,300 new industrial licenses in 2024: Ministry report
  • Private sector investments in industrial cities and zones totaled SR1.9 trillion
  • Ministry developed 454 investment opportunities worth SR143 billion

RIYADH: Saudi Arabia has issued 1,346 new industrial licenses in 2024, attracting over SR50 billion ($13.3 billion) in new investments, a recent report revealed.

Private sector investments in industrial cities and zones totaled SR1.9 trillion, and the number of licensed workers in the field was 1.09 million, with a 36 percent Saudization rate, the analysis by the Kingdom’s Ministry of Industry and Mineral Resources said.

The new figures are consistent with the nation’s efforts to transform its industrial sector to boost the number of factories to 36,000 by 2035, of which 4,000 will be fully automated. The goal is part of the Kingdom’s strategy to foster a dynamic, innovation-driven industrial sector.

They also align with data from January, when the country’s industrial production index rose by 1.3 percent year-on-year, driven by ongoing growth in manufacturing and waste management, according to the General Authority for Statistics. Monthly, the index remained stable at 103.9, unchanged from December.

“We have all the capabilities to achieve a competitive and sustainable industrial economy, including ambitious young talent, a distinguished geographical location, rich natural resources, and leading national industrial companies,” the report said, citing Crown Prince Mohammed bin Salman. 

“Through the National Industrial Strategy and in partnership with the private sector, the Kingdom will become a leading industrial power, contributing to securing global supply chains and exporting high-tech products to the world,” he added.

The ministry has also developed 454 investment opportunities worth SR143 billion, which are linked to the industrial sectors targeted in the National Industrial Strategy.

The report shed light on how Saudi Arabia has achieved a global ranking of 33 in the Competitive Industrial Production Index.

“This progress reflects the Kingdom’s significant efforts to strengthen its industrial sector as part of Saudi Vision 2030, which aims to diversify the economy and reduce dependence on oil. This achievement also represents an advance of two places from the target, which is 35th place globally,” the Minister of Industry and Mineral Resources, Bandar Alkhorayef, said.

“These visions and objectives set forth major ambitions to align with the Kingdom’s position as an influential regional power within the G20 group and achieve Saudi Arabia 2030, which envisions the Kingdom as a leading industrial nation in which the mining sector is the third pillar of the national economy,” Alkhorayef added.

In June, Saudi Arabia launched the second phase of its standardized industrial incentives program to enhance competitiveness and strengthen the Kingdom’s trade balance.

Speaking at the Saudi Industry Forum in Dhahran at the time, Khalil Ibn Salamah, deputy minister of industry and mineral resources for industrial affairs, said the initiative supports the government’s efforts to drive high-value investments in priority sectors.

This comes as the nation works to position itself as a regional and global industrial hub. Since its initial launch, the program has drawn more than 1,000. Of the 118 applications received, 12 have reached the final qualification stage.


ACWA Power-led consortium signs $8.3bn deals for massive renewable energy push

ACWA Power-led consortium signs $8.3bn deals for massive renewable energy push
Updated 13 July 2025
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ACWA Power-led consortium signs $8.3bn deals for massive renewable energy push

ACWA Power-led consortium signs $8.3bn deals for massive renewable energy push
  • Five of the new projects are photovoltaic solar initiatives
  • Deals mark largest single-phase capacity signed globally for renewable energy projects

RIYADH: A Saudi consortium led by ACWA Power has signed agreements worth SR31 billion ($8.3 billion) to develop seven major solar and wind energy projects with a combined capacity of 15,000 megawatts, the Saudi Press Agency reported on Sunday.

The consortium includes the Water and Electricity Holding Co., a subsidiary of the Public Investment Fund, and Aramco Power, which is owned by Saudi Aramco. The deals were signed in the presence of Energy Minister Prince Abdulaziz bin Salman and fall under the National Renewable Energy Program, overseen by the Ministry of Energy.

Five of the new projects are photovoltaic solar initiatives, including the Bisha Project in the Asir region and the Humaij Project in Madinah, each with a capacity of 3,000 MW. The Khulis Project in Makkah will generate 2,000 MW, while the Afif 1 and Afif 2 projects, both located in the Riyadh region, will add another 4,000 MW combined.

In addition, two wind energy projects will be developed in Riyadh: the 2,000 MW Starah Project and the 1,000 MW Shaqra Project.

The agreements mark the largest single-phase capacity signed globally for renewable energy projects.

They underscore the Kingdom’s ongoing commitment to expanding its renewable energy infrastructure and its ability to deliver electricity at globally competitive costs.

This achievement reflects strong investor confidence and the success of Saudi Arabia’s financing and development strategies in the energy sector.