Saudi Education Spending Surges to SAR 1.03 Billion as Schools Reopen

by Nausheen January 2026

January 2026

As students returned to classrooms across the Kingdom, education spending in Saudi Arabia soared to SAR 1.03 billion in the week ending 23 August, 2025. The figure represents a 132 percent increase compared with the previous week, according to data released by the Saudi Central Bank.

The surge placed education among only three sectors to record positive growth during the period, keeping overall point-of-sale (POS) transactions above the SR13 billion mark despite a modest 0.5 percent weekly decline.

Education in Focus

The rise in spending reflected the back-to-school season, with families investing heavily in fees, supplies, and related services. The number of education-related transactions climbed 47.8 percent to reach 270,000, highlighting the scale of consumer activity as schools reopened.

Education accounted for the third largest share of POS transactions across all categories for the week, reinforcing its importance as both a household priority and a key driver of consumer activity.

Broader Consumer Trends

While education spending spiked, other sectors painted a mixed picture.

Recreation and culture rose by 5.6 percent, with book and stationery sales up 34.5 percent to SAR 165.1 million, alongside a 40.2 percent increase in transaction volume. Recreation outlays, however, dipped 11.3 percent to SAR 185.9 million.
Food and beverages, the largest spending category, fell 5.2 percent to SAR 1.78 billion.
Restaurants and cafes dropped 8.4 percent, totalling SAR 1.55 billion, the second-biggest sector by value.
Airline spending posted the sharpest decline, falling 15.8 percent to SR41.8 million, followed by hotels, down 14.5 percent to SAR 272.1 million.
Spending at gas stations decreased 5.9 percent to SAR 936.4 million.
Transportation and health both saw 6.2 percent declines.
Smaller drops were recorded in furniture (down 3.1 percent) and construction materials (down 2.5 percent).

Students in a Saudi at the start of the academic year

Spending by Region

Geographically, Riyadh led the Kingdom’s spending with SR4.90 billion in POS transactions, a rise of 6.8 percent compared with the week before. Jeddah ranked second with SAR 1.77 billion despite a 2.5 percent dip, while Dammam came third with SAR 671.8 million, up 6.9 percent.

A Resilient Sector

The figures underscore the resilience of Saudi education spending, even as other consumer categories softened. With schools now back in session, education remains one of the most robust sectors, reflecting its central role in household budgets and in the Kingdom’s broader vision for human capital development.