Saudi POS spending hits $3bn, fueled by jewelry sales
Updated 5 sec ago
Miguel Hadchity
RIYADH: Jewelry spending in Saudi Arabia hit SR320.7 million ($85.4 million) between April 20 and 26, marking a weekly rise of 18.2 percent, according to the latest official figures.
The point-of-sale transactions bulletin issued by the Saudi Central Bank showed that this sector was one of the few that registered positive growth over the seven-day period.
The overall point-of-sale value decreased by 0.8 percent to SR11.3 billion during the week, with the number of transactions dropping 1.1 percent to 199.7 million.
Spending on electronics and electronic devices saw the second-largest increase, at 3.5 percent, to reach SR152.7 million. The number of transactions in this area increased 0.8 percent to 1 million.
Food and beverages spending followed with a 0.6 percent uptick to SR1.65 billion, accounting for the largest share of the week’s POS value.
Expenditure on education saw the biggest decrease, dipping by 17.5 percent to SR137.2 million, followed by hotels with a 13.7 percent drop to SR254.6 million.
Spending in restaurants and cafes saw a 2.1 percent fall to SR1.64 billion, although it still claimed the second-largest share of the POS value. Outlays on miscellaneous goods and services dropped 2.7 percent to SR1.34 billion.
Spending in the leading three categories accounted for approximately 40.8 percent, or SR4.6 billion, of the week’s total value.
Recreation and culture spending dropped by 7.4 percent to SR210.4 million, and expenditure on furniture decreased by 1.3 percent to SR224.9 million.
The clothing and footwear sector saw the smallest decline at 0.1 percent to SR607 million, with the number of transactions dropping by 1.9 percent to 4.6 million.
Geographically, Riyadh dominated POS transactions, representing around 36.1 percent of the total, with expenses in the capital reaching SR4.1 billion — a 0.1 percent increase from the previous week.
Jeddah followed with a 0.5 percent decrease to SR1.7 billion; Dammam came in third at SR602.5 million, up 1.7 percent.
Madinah experienced the most significant decrease in spending, dropping by 7.7 percent to SR421.1 million. Makkah followed with a 5.7 percent reduction to SR420.7 million.
Among Saudi cities, only Riyadh, Dammam, and Alkhobar experienced growth in transaction numbers. Riyadh reached 65.8 million transactions, reflecting a marginal uptick, while Dammam climbed to 8.5 million and Alkhobar to 4.5 million, marking modest gains compared to other regions.
Chinese carmakers to capture 34% of MEA market by 2030: AlixPartners
Updated 1 min 2 sec ago
Nirmal Narayanan
RIYADH: Chinese automotive brands are expected to achieve a market share of 34 percent in the Middle East and Africa region by 2030, marking a rise from 10 percent in 2024, according to an analysis.
In its latest report, global consulting firm AlixPartners stated that the MEA region will hold the highest share of vehicles produced by the Asian country outside of China, Russia, and Belarus by the end of the decade.
The projections align with findings published in November by media intelligence firm CARMA, which revealed that car buyers in countries such as Saudi Arabia and the UAE show trust levels above 70 percent for Chinese automotive brands — more than double the confidence seen in the US.
Alessandro Massaglia, partner and managing director at AlixPartners, said: “Chinese car manufacturers are rapidly gaining traction in the Middle East, positioning the region as a critical growth engine for their global exports.”
According to Massaglia, the technical prowess of Chinese vehicles and competitive pricing are two major factors attracting buyers in the Middle East.
“Customers appreciate the competitive pricing and high technology content of Chinese vehicles. These brands are steadily gaining ground on established players, a trend expected to accelerate with the gradual shift toward electric vehicles,” he added.
Countries including Saudi Arabia have already set clear targets for EV adoption, with the Kingdom aiming to have 30 percent of all vehicles in Riyadh electric by the end of this decade as part of its Vision 2030 initiative.
The report noted that the Middle East region is set to play an increasingly strategic role in the global growth ambitions of Chinese vehicle brands.
“The region’s appetite for innovation, coupled with its investments in future mobility and sustainability, positions it as a key destination for next-generation automotive solutions,” said AlixPartners.
It added: “The growing alignment between Chinese brands’ offerings and Middle Eastern market needs is expected to drive deeper partnerships, technology adoption, and competitive intensity across the automotive landscape in the coming years.”
Middle East growth
According to AlixPartners, the Middle East and Russia emerged as the most important markets for Chinese exports in 2024, surpassing North America and Europe in volume for the first time.
“This shift comes as China continues to flex its muscles in the global automotive-export market, even amid the ongoing global tariff storm gripping the industry,” said AlixPartners.
The global automotive industry has faced major upheaval since early April, after US President Donald Trump imposed a 145 percent tariff on Chinese imports — the highest so far in the trade dispute between the two countries.
According to the report, China’s exports globally rose by 23 percent year on year to reach 6.4 million passenger vehicles in 2024.
The analysis noted that this growth is expected to moderate to 40 percent in 2025 as tariffs ripple through the market.
Russia and the Middle East together accounted for 35 percent of China-origin vehicle exports in 2024, surpassing the combined shipments to Europe and North America for the first time.
“China’s car sales to Russia and Belarus have more than doubled over the past five years, insulating it in part from the volatility of tariffs,” said Andrew Bergbaum, global leader of the automotive and industrial practice at AlixPartners.
The report also forecasted that Chinese brands will account for 30 percent of the global automotive market by 2030, up from 21 percent in 2024, primarily driven by strong gains in emerging markets.
Impact of tariffs
President Donald Trump holds a chart as he announces a plan for tariffs on imported goods during an event Wednesday, April 2, 2025. Getty
According to AlixPartners, tariffs issued by the US and other countries will have a muted impact on the Chinese automotive industry.
“Although recent tariffs from the US and other countries will increase the cost of China’s vehicle and auto components exports by about 24 percent, or $46 billion, this represents only about 3.8 percent of China’s total auto-industry production value,” said the consulting firm.
Growth in the Chinese automotive industry will also be supported by domestic demand, which is expected to grow by 4 percent in 2025, reaching 26.8 million units.
The report highlighted that domestic growth in China is primarily driven by the rapid adoption of EVs, increasingly featuring intelligent-vehicle technologies such as autonomous-driving systems.
AlixPartners projected that EV sales in China will account for 54 percent of the domestic market in 2025.
Highlighting innovation in Chinese vehicles, the report noted that Advanced Driving Assistance Systems, or ADAS, Level 2 and above were included in nearly 60 percent of passenger vehicle sales in China in 2024, compared to less than 40 percent in the US.
ADAS refers to electronic technologies used in vehicles to enhance safety and driving comfort.
As Chinese automakers strengthen their presence in the Middle East, driven by competitive pricing, technology adoption, and evolving market demand, continued growth is expected in the years ahead.
Oil Updates — crude drops, poised for biggest monthly fall in 3 years
Updated 30 April 2025
Reuters
SINGAPORE: Oil prices extended declines on Wednesday and were set for their largest monthly drop in more than three years as the global trade war eroded the outlook for fuel demand, while fears of mounting supply also weighed.
Brent crude futures fell by 83 cents, or 1.29 percent, to $63.42 per barrel by 10:30 a.m. Saudi time. US West Texas Intermediate crude futures dropped 92 cents, or 1.52 percent, to $59.50 a barrel.
Brent and WTI have lost 15 percent and 17 percent respectively so far this month, the biggest percentage drop since November 2021.
Both benchmarks slumped after US President Donald Trump’s April 2 announcement of tariffs on all US imports. They then sank further to four-year lows as China responded with its own levies against US imports, stoking a trade war between the top two oil-consuming nations.
Trump’s tariffs on imports into the US have made it probable the global economy will slip into recession this year, according to a Reuters poll.
China’s factory activity contracted at the fastest pace in 16 months in April, a factory survey showed on Wednesday.
Worries about demand amid the trade war have weighed on investor sentiment, said ANZ bank senior commodity strategist Daniel Hynes.
“There are also concerns that recent strength in US economic data was only temporary, due to stockpiling ahead of the tariffs that now appears to be abating,” he added.
US consumer confidence slumped to a nearly five-year low in April on growing concerns over tariffs, data showed on Tuesday.
Recent signs of a de-escalation in the trade wars, including a pair of orders Trump signed on Tuesday to soften the blow of his auto tariffs, eased some jitters among global investors.
That said, analysts believe the oil market will stay under pressure as the Trump administration continues to prioritize lower oil prices to manage inflation.
Oil prices were also undermined by fears of mounting supply from the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+.
Several OPEC+ members will suggest a ramp-up of output hikes for a second straight month in June, sources told Reuters last week. The group will meet on May 5 to discuss output plans.
On the supply front, US crude oil inventories rose by 3.8 million barrels last week, market sources said on Tuesday citing American Petroleum Institute data.
US government data on stockpiles is due at 5:30 p.m. Saudi time on Wednesday. Analysts polled by Reuters expect, on average, an 400,000 barrel increase in US crude oil stocks for last week.
Saudi Arabia’s PIF starts selling 7-year sukuk, document shows
Updated 30 April 2025
REUTERS
RIYADH: Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, has begun accepting bids for the sale of benchmark-sized, dollar-denominated 7-year Islamic bonds, or sukuk, according to an arranging bank document seen by Reuters on Wednesday.
The indicative price for the sukuk sale has been placed around 145 basis points over US Treasuries, the document shows.
Last week, Reuters reported through sources that Gulf issuers, including Saudi Arabia’s $925 billion sovereign wealth fund, are preparing a series of bond offerings despite market volatility caused by US President Donald Trump’s tariff policies.
Saudi Arabia, Azerbaijan sign SME deal to strengthen trade ties
Updated 29 April 2025
Nadin Hassan
RIYADH: Saudi Arabia and Azerbaijan have signed a comprehensive agreement focused on strengthening economic collaboration through the development of small and medium-sized enterprises, in a move that underscores both nations’ commitment to enhancing bilateral trade and investment.
The memorandum of understanding was formalized during the 8th session of the Saudi-Azerbaijani Joint Committee, held in Riyadh. It was signed between Saudi Arabia’s Small and Medium Enterprises General Authority, known as Monsha’at, and Azerbaijan’s Small and Medium Business Development Agency, known as KOBIA.
The SME agreement aligns with Saudi Arabia’s Vision 2030 strategy, which prioritizes economic diversification and entrepreneurship. For Azerbaijan, it marks another step in forging strategic partnerships in the Gulf region to bolster private-sector growth and create new market opportunities for innovative enterprises.
In a statement posted on X, Monsha’at said: “In the presence of H.E Minister of Investment, Eng. Khalid bin Abdulaziz Al-Falih, and the Deputy Prime Minister of the Republic of Azerbaijan, Samir Sharifov, Monsha’at, signed a MoU with ‘KOBİA’ Agency, as part of the 8th session of the Saudi-Azerbaijani Joint Committee activities, to strengthen cooperation in supporting the SMEs and entrepreneurship’s growth between the two countries.”
The agreement encompasses a broad range of initiatives, including knowledge exchange, joint training programs, and support for technical innovation. It also promotes investment opportunities, cross-border partnerships, and institutional collaboration through exhibitions and shared platforms.
Saudi Arabia and Azerbaijan come together at the 8th Session of the Joint Commission between the two nations to unlock new investment opportunities, strengthen economic ties, and drive future collaboration across key sectors. pic.twitter.com/6O3iv34Bw4
In a separate announcement, the Saudi Ministry of Investment revealed the signing of two additional memorandums of understanding between private-sector companies from both countries.
“These agreements cover the development of maritime infrastructure and the establishment of industrial and medical facilities in the Kingdom, including the production of biotechnology and oncology medicines, the establishment of research and development centers, and infrastructure for re-export warehouses,” the Ministry noted in a post on X.
The joint committee also reviewed a series of potential joint ventures aimed at strengthening cooperation across mutually beneficial sectors. These initiatives are closely aligned with both countries’ long-term goals for economic diversification.
Officials from Saudi Arabia and Azerbaijan emphasized the importance of fostering dynamic SME ecosystems as engines of job creation, innovation, and global competitiveness. By aligning policy frameworks and enabling institutional collaboration, the two nations aim to unlock greater private-sector engagement and regional trade expansion.
Closing Bell: Saudi main index closes in red at 11,746
Updated 29 April 2025
Miguel Hadchity
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Tuesday, losing 38.43 points, or 0.33 percent, to close at 11,746.20.
The total trading turnover of the benchmark index was SR6.87 billion ($1.83 billion), as 86 stocks advanced, while only 157 retreated.
The MSCI Tadawul Index decreased by 5 points, or 0.33 percent, to close at 1,493.77.
The Kingdom’s parallel market, Nomu, dipped, losing 89.34 points, or 0.31 percent, to close at 28,331.37. This comes as 35 stocks advanced, while 43 retreated.
The best-performing stock on the main index was Arabian Contracting Services Co., with its share price surging by 9.88 percent to SR131.20.
Other top performers included Al-Baha Investment and Development Co., which saw its share price rise by 4.94 percent to SR4.25, and Sumou Real Estate Co., which saw a 3.93 percent increase to SR 46.25.
The worst performer of the day was Alistithmar AREIC Diversified REIT Fund, whose share price fell by 3.39 percent to SR9.41.
Saudi Tadawul Group Holding Co. and Saudi Kayan Petrochemical Co. also saw declines, with their shares dropping by 2.94 percent and 2.83 percent to SR185 and SR5.83, respectively.
On the announcements front, Alinma Bank announced its interim financial results for the first three months of the year, with net profit amounting to SR1.5 million, a 1.3 percent dip compared to the previous quarter.
The bank’s total comprehensive income saw a 56 percent increase in the first quarter of 2025 to reach SR1.6 million.
Saudi Ceramic Co. also announced its financial results for the same period, with its net profit dipping by 88.4 percent to SR20.8 million compared to the previous quarter. Similarly, the company’s total comprehensive income saw a decrease of 88.7 percent to SR20.8 million.
Saudi Ceramic Co.’s share price traded 3.15 percent higher on the main market to reach SR27.85.
In the first quarter of 2025, Astra Industrial Group’s net profits saw a 30.7 percent quarter-on-quarter increase to reach SR171.8 million. The group attributed the increase to an uptick in gross profit in the pharmaceuticals sector and a decrease in finance costs in the specialty chemical sector.
The group’s share price traded 0.52 percent lower to reach SR153.
