Saudi restaurant and cafe sales boost August POS spending to $15.6bn

Saudi restaurant and cafe sales boost August POS spending to $15.6bn
Saudi Arabia’s point-of-sale spending reached around SR58.51 billion ($15.6 billion) in August. Shutterstock
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Updated 20 October 2024
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Saudi restaurant and cafe sales boost August POS spending to $15.6bn

Saudi restaurant and cafe sales boost August POS spending to $15.6bn

RIYADH: Saudi Arabia’s point-of-sale spending reached around SR58.51 billion ($15.6 billion) in August, marking a 9.67 percent rise compared to the same month last year, according to the latest data.

Figures from the Saudi Central Bank, known as SAMA, revealed that 36 percent of POS spending during this period — totaling SR16.55 billion — was spent on beverages, food, restaurants, and cafes, reflecting a 4.72 percent increase. This growth was primarily driven by higher spending in restaurants and cafes.

An additional 6.2 percent, amounting to SR3.63 billion, was allocated to clothing and footwear, while health and transportation each accounted for approximately 6 percent, or SR3.38 billion, of the total.

The strongest growth in POS spending during this period was in jewelry sales, which rose by 15 percent to SR982.15 million. Telecommunications also grew by 14 percent to SR493.5 million, although it represented only 1 percent of the total share. 

Expenditure on miscellaneous goods and services, including personal care, supplies, maintenance, and cleaning, saw a 12 percent increase, reaching SR6.56 billion in August.

The rise in POS spending across Saudi Arabia, particularly in the hospitality sector, is attributed to several interrelated factors that reflect the Kingdom’s ongoing economic transformation and digitalization initiatives. 

As technology adoption accelerates and consumers increasingly prefer cashless transactions, businesses are recognizing the need for robust POS systems to enhance operational efficiency and customer experiences.

The hospitality industry is at the forefront of this trend, driven by a flourishing tourism sector and government efforts to diversify the economy away from oil dependence. 

With Saudi Arabia hosting more international events and attracting tourists, hospitality operators are investing in advanced POS solutions to streamline service delivery, optimize inventory management, and leverage data analytics for valuable insights.

Additionally, the rise of digital payment options, driven by a young and tech-savvy demographic, is further accelerating this spending trend, as customers seek seamless and convenient payment experiences. 

In this dynamic landscape, TRAY, a leader in cloud-native POS systems, has expanded its partnership with Alraedah Finance, a prominent provider of financial and digital solutions in Saudi Arabia.

Alraedah’s significant financial investment will bolster TRAY’s development of its POS technology and support for enterprise customers. Alraedah Digital Solutions will also provide expertise in data analytics, product development, and system integration. This partnership, initiated in 2023 through a reseller agreement, aims to deliver cutting-edge POS solutions to both small and medium-sized enterprises and larger companies across the MENA region.   

Already, the collaboration has improved business operations for customers in the Kingdom and is set to enhance service offerings, including POS financing, while further supporting the development of the SME sector, particularly in the hospitality industry. 

Declining spending

Public utilities sales, however, saw a decline of 35 percent year on year, reaching SR324.7 million. Over the first eight months of 2024, spending in this sector decreased by 23 percent compared to the same period in 2023.

This drop can be attributed to privatization efforts in the Gulf’s utility sector.

With greater private sector participation, particularly in water desalination and power generation, companies like ACWA Power have implemented more efficient technologies and renewable energy solutions, driving down costs.

Innovations such as solar-powered desalination plants and tariff reforms have reduced utility bills, encouraging responsible consumption and promoting sustainability.

Spending on electronic and electric devices also dropped by 15 percent, reaching SR878.5 million. According to SAMA data, sales in this sector have fluctuated due to factors such as seasonal promotions, new product launches, and changing economic conditions. 

Figures also showed that Riyadh led in POS sales distribution in August with 34 percent, reaching about SR20 billion, followed by Jeddah, which accounted for 14 percent, totaling SR8.16 billion.

The capital’s vibrant hospitality scene, bolstered by a surge in both local and international tourism, has driven demand for advanced POS solutions in restaurants, cafes, and retail establishments. 

Furthermore, significant government initiatives aimed at diversifying the economy and promoting the tourism sector have led to increased consumer activity and spending.

Riyadh’s growing population, coupled with a young, tech-savvy demographic that favors cashless transactions, further contributes to its dominance in POS spending, positioning the city as a key player in the Kingdom’s evolving digital economy.   


Saudi Arabia’s ACWA Power signs multiple deals to supply clean energy to Europe

Saudi Arabia’s ACWA Power signs multiple deals to supply clean energy to Europe
Updated 7 sec ago
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Saudi Arabia’s ACWA Power signs multiple deals to supply clean energy to Europe

Saudi Arabia’s ACWA Power signs multiple deals to supply clean energy to Europe

RIYADH: Saudi utility giant ACWA Power has signed multiple agreements to export renewable electricity and green hydrogen to Europe, marking a major step in the Kingdom’s efforts to become a global clean energy hub. 

The deals, signed during an international workshop in Riyadh under the supervision of the Ministry of Energy, aim to build integrated systems for cross-border energy exports. 

The event, titled “Exporting Renewable Energy and Green Hydrogen,” underscores Saudi Arabia’s strategic push to lead the India-Middle East-Europe Economic Corridor by leveraging its geographic position between East and West, the Saudi Press Agency reported. 

The agreements support the Kingdom’s target to generate 50 percent of its electricity from renewable sources by 2030 and to become the world’s largest exporter of green hydrogen, with plans to produce 1.2 million tons annually by the end of the decade. 

The SPA report stated: “The agreements and memoranda of understanding signed by ACWA Power at the workshop included a multilateral memorandum of understanding with leading European companies, including Italy’s Edison, France’s TotalEnergies, the Netherlands’ ZeroEurope, and Germany’s ENPW, to export electricity generated from renewable energy sources from the Kingdom to Europe, while assessing commercial potential and European market trends toward sustainable energy solutions.” 

ACWA Power also signed memoranduma of understanding with global leaders in electrical interconnection and high-voltage DC transmission technologies, including Italy’s CESI as an independent technical adviser, as well as Prysmian, GE Vernova, Siemens Energy, and Hitachi. The partnerships aim to develop advanced cross-border transmission corridors to enhance supply reliability and infrastructure efficiency.  

In collaboration with Germany’s EnBW, ACWA Power also launched the first phase of the Yanbu Green Hydrogen Hub, an integrated project designed to help meet global demand for low-emission energy. The facility is expected to begin commercial operations in 2030. 

The project will feature renewable electricity generation, water desalination, electrolysis units, hydrogen-to-ammonia conversion, and a dedicated export terminal. It is intended to support Saudi Arabia’s ability to produce clean energy at competitive costs while meeting rising global industrial demand for sustainable energy solutions. 

The workshop and accompanying agreements highlight the Kingdom’s competitive advantages and reinforce its leadership in global energy transition efforts. The Ministry of Energy said the initiative supports Saudi Arabia’s commitment to energy security, regional integration, and its Vision 2030 goals. 

With a net-zero emissions target by 2060, Saudi Arabia is investing heavily in both green and blue hydrogen. ACWA Power and Saudi Aramco are spearheading several major projects, including a hydrogen venture in NEOM, to solidify the Kingdom’s role in the future hydrogen economy. 


Egyptian PM directs government to prepare investment package for US firms

Egyptian PM directs government to prepare investment package for US firms
Updated 58 min 40 sec ago
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Egyptian PM directs government to prepare investment package for US firms

Egyptian PM directs government to prepare investment package for US firms

RIYADH: Egypt’s prime minister has instructed his government to prepare a package of investment opportunities for US firms, aiming to strengthen bilateral relations.

In a meeting with his Cabinet ministers, Mostafa Madbouly stated that several opportunities are available, particularly given the significant advantages offered by the country’s government to foreign investors, according to Egypt’s State Information Service. 

Egypt is intensifying efforts to attract foreign direct investment as part of its broader economic reform agenda and Vision 2030 strategy for sustainable development. 

Amid global headwinds and domestic economic challenges, the Egyptian government has launched several initiatives to deepen economic partnerships with major international players, notably the US.

One key milestone in this effort was the US–Egypt Policy Leaders Forum 2025, held in May, at which Madbouly announced that over 1,800 US companies are currently operating in the country, generating $47 billion in investments over the past two decades.

Discussing the latest Cabinet meeting, the Egyptian State Information Service reported that Madbouly “highlighted the government’s interest in supporting Egyptian-US relations in light of the strategic and historical ties between the two sides, noting the many opportunities for cooperation that could be exploited to support joint collaboration.”

The Egyptian prime minister added that his government is keen to remove all obstacles to joint cooperation, as well as to propose specific projects that will be discussed for collaboration in the upcoming period. 

During the gathering, Egypt’s Minister of Industry and Transport, Kamel Al-Wazir, reviewed investment opportunities presented to US companies in sectors such as ports, maritime transport, and industrial zones. 

Minister of Planning, Economic Development, and International Cooperation Rania El-Mashat outlined Egypt’s development cooperation efforts with the US, highlighting successful collaborative programs that contribute to the country’s development and further strengthen relations between the two sides.

At the conclusion of the meeting, Madbouly instructed all relevant authorities to coordinate on preparing a set of promising investment opportunities and to ensure they are presented to US companies, to boost foreign direct investment in Egypt.

Egypt, Germany in talks for €100m debt swap deal

International Cooperation Minister Rania Al-Mashat spoke at a joint press conference in Cairo with Foreign Minister Badr Abdelatty and Germany’s Minister for Economic Cooperation and Development Reem Alabali-Radovan. State Information Service

In another major development, Al-Mashat announced that the country is in talks with Germany over a new debt swap agreement worth €100 million ($116.48 million), to be disbursed in two tranches. 

The first tranche is expected in December 2025 and the second in June 2026, according to the north African country’s State Information Service.

“These negotiations reflect the strength of Egyptian-German development cooperation and shared priorities in supporting sustainable development projects,” said Al-Mashat. 

According to Egypt’s Ministry of International Cooperation, the total value of debt swaps between Egypt and Germany would reach €340 million with this new agreement.


Oil Updates — prices little changed as investors eye impact of new sanctions on Russia

Oil Updates — prices little changed as investors eye impact of new sanctions on Russia
Updated 21 July 2025
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Oil Updates — prices little changed as investors eye impact of new sanctions on Russia

Oil Updates — prices little changed as investors eye impact of new sanctions on Russia
  • EU sanctions target Russian crude supply, impact uncertain
  • Iran nuclear talks for Friday may affect oil market dynamicsIran nuclear talks for Friday may affect oil market dynamics
  • US tariffs on EU imports could influence oil demand

SINGAPORE/BEIJING: Oil prices were little changed on Monday as traders assess the impact of new European sanctions on Russian oil supplies while they also worry about tariffs possibly weakening fuel demand as Middle East producers are raising output.

Brent crude futures dropped 10 cents to $69.18 a barrel by 8:55 a.m. Saudi time, after settling 0.35 percent lower on Friday. US West Texas Intermediate crude was at $67.33 a barrel, down 1 cent, following a 0.30 percent decline in the previous session.

The European Union approved on Friday the 18th package of sanctions against Russia over the conflict in Ukraine, which also targeted India’s Nayara Energy, an exporter of oil products refined from Russian crude.

Kremlin spokesperson Dmitry Peskov said on Friday that Russia had built up a certain immunity to Western sanctions.

The EU sanctions followed US President Donald Trump’s threats last week to impose sanctions on buyers of Russian exports unless Russia agrees to a peace deal in 50 days.

ING analysts said the lack of reaction showed the oil market is not convinced by the effectiveness of these sanctions.

“However, the part of the package likely to have the biggest market impact is the EU imposing an import ban on refined oil products processed from Russian oil in third countries,” the analysts led by Warren Patterson said.

“But clearly, it will be challenging to monitor crude oil inputs into refineries in these countries and, as a result, enforce the ban.”

Iran, another sanctioned oil producer, is due to hold nuclear talks in Istanbul with Britain, France and Germany on Friday, an Iranian Foreign Ministry spokesperson said on Monday. That follows warnings by the three European countries that a failure to resume negotiations would lead to international sanctions being reimposed on Iran.

In the US, the number of operating oil rigs fell by two to 422 last week, the lowest since September 2021, Baker Hughes said on Friday.

US tariffs on European Union imports are set to kick in on August 1, although US Commerce Secretary Howard Lutnick said on Sunday he was confident the United States could secure a trade deal with the bloc.

“US tariff concerns will continue to weigh in the lead up to August 1 deadline, while some support may come from oil inventory data if it shows tight supply,” IG market analyst Tony Sycamore said.

“It feels very much like a $64-$70 range in play for the week ahead.”

Brent crude futures have traded between a low of $66.34 a barrel and a high of $71.53 after a ceasefire deal on June 24 halted the 12-day Israel-Iran war.


Closing Bell: Saudi main index slips to close at 10,964

Closing Bell: Saudi main index slips to close at 10,964
Updated 20 July 2025
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Closing Bell: Saudi main index slips to close at 10,964

Closing Bell: Saudi main index slips to close at 10,964
  • Parallel market Nomu lost 0.48% to close at 27,162.60
  • MSCI Tadawul Index shed 0.4% to close at 1,405.02

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 42.27 points, or 0.38 percent, to close at 10,964.71.

The total trading turnover of the benchmark index was SR3.2 billion ($856 million), as 65 of the stocks advanced and 182 retreated. 

The Kingdom’s parallel market Nomu lost 132.37 points, or 0.48 percent, to close at 27,162.60. This comes as 27 of the listed stocks advanced while 51 retreated. 

The MSCI Tadawul Index lost 5.85 points, or 0.41 percent, to close at 1,405.02. 

The best-performing stock of the day was Tourism Enterprise Co., whose share price rose 9.2 percent to SR0.95. 

Other top performers included National Metal Manufacturing and Casting Co., whose share price rose 9.03 percent to SR16.91 , and Arab Sea Information System Co., whose share price increased 6.27 percent to SR5.59.

Fawaz Abdulaziz Alhokair Co., or Cenomi Retail, recorded the most significant drop, falling 9.95 percent to SR29.70.

SHL Finance Co. also saw its stock price fall 6.99 percent to SR21.70.

Alandalus Property Co. witnessed a decline of 6.31 percent to SR19.90.

On the announcements front, Aldrees Petroleum and Transport Services Co. disclosed its interim financial results for the period ending on June 30. 

According to a Tadawul statement, the firm recorded a net profit of SR99.7 million during the second quarter of the year, reflecting a 20.98 percent increase compared to the same period a year earlier.

The climb is mainly attributed to higher sales in the petrol and transport divisions, along with increased income from deposits, sukuk, and other sources, despite a decline in returns from the joint venture investment.

Marketing, selling, general, and administrative financing costs, along with Zakat expenses, have all risen. The total comprehensive income for the current quarter increased compared to the same quarter last year, primarily due to the remeasurement of employee-defined benefit obligations.

Aldrees Petroleum and Transport Services Co. ended the session at SR129.20, down 0.78 percent.

Cenomi Retail announced that it has been notified by a number of its substantial shareholders regarding the signing of a share purchase agreement with Al Futtaim Retail Co. for the sale of part of their stake in Cenomi Retail to Al Futtaim. 

According to a bourse filing, under the terms of the deal, the selling shareholders will transfer 57.3 million shares, representing 49.95 percent of the company’s total share capital, to Al Futtaim in a private transaction valued at SR2.52 billion, with each share priced at SR44.

Saudi Exchange has also announced the listing of Sport Clubs Co. shares on the main market on July 22.


Saudi Arabia approves new Dammam-based budget airline backed by Air Arabia

Saudi Arabia approves new Dammam-based budget airline backed by Air Arabia
Updated 20 July 2025
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Saudi Arabia approves new Dammam-based budget airline backed by Air Arabia

Saudi Arabia approves new Dammam-based budget airline backed by Air Arabia
  • Eastern Province governor unveils $426 million aviation development package

RIYADH: Saudi Arabia has granted a low-cost airline license to an Air Arabia-led consortium, aiming to boost air connectivity, create jobs, and upgrade transport in the Eastern Province. 

The new carrier, a joint venture between the UAE-based budget airline, KUN Investment Holding, and Nesma, will be headquartered at Dammam’s King Fahd International Airport. It is expected to operate both domestic and international routes, helping expand access and competition in the Kingdom’s growing aviation market. 

According to the General Authority of Civil Aviation, the new airline aims to serve 24 domestic and 57 international destinations, transporting around 10 million passengers annually. Its operations will be supported by a fleet of 45 aircraft and are projected to create more than 2,400 direct jobs, aligning with Saudi Arabia’s Vision 2030 goals to boost the non-oil economy and local employment. 

In a statement, GACA stated: “This move aims to enhance air connectivity in the Eastern Province, increase seat capacity, and provide passengers with competitive options.”  

The announcement comes as part of broader efforts to transform Saudi Arabia into a regional aviation hub. The country plans to handle 330 million passengers and transport 4.5 million tons of air cargo annually by 2030, under the National Strategy for Transport and Logistics Services. 

As part of this strategy, Eastern Province Gov. Prince Saud bin Naif bin Abdulaziz also inaugurated the master plans for King Fahd International, Al-Ahsa, and Al-Qaisumah airports, alongside a new corporate identity for Dammam Airports Co. The governor also launched a SR1.6 billion ($426 million) development package covering 77 infrastructure projects to improve passenger experience and airport services.   

King Fahd International Airport handled 12 million passengers in 2024, up 15 percent from the previous year, with over 99,000 flights recorded, according to data from Dammam Airports Co. The airport also set a daily passenger traffic record, surpassing 50,000 travelers in a single day for the first time.  

With air traffic steadily rising and infrastructure rapidly expanding, the introduction of a new budget airline based in Dammam is expected to solidify the region’s position as a key aviation gateway and support Saudi Arabia’s ambitions to lead the Middle East civil aviation sector by the end of the decade.