New data has shown that consumer spending during Ramadan 2022 in Saudi Arabia is likely to exceed last year as the kingdom recovers from the COVID-19 pandemic.
Saudi Central Bank data analyzed by Arab News, including the peak week in Shaaban and the next two weeks, showed that Saudi consumers spent 33.7 billion riyals this year, an increase of 13.7 percent over the same period last year year.
Research by Toluna Consumer Sentiment also showed that one in two people in Saudi Arabia plans to spend more during Ramadan compared to the same month last year.
Spend achievement during Ramadan 2022
If we look at the data of the last Hijri year 1442, spending activity peaked during the third week of Sha’ban – the week that ended in April 42021, that is, two weeks before the beginning of fasting. Spending during the week rose 29 percent on a weekly basis to 11.4 billion Saudi Riyal ($ 3.04 billion), the highest weekly level ever at that time.
Then consumer spending saw a steady decline over the next three weeks, reaching its lowest level during the second week of Ramadan.
Growth resumed during the third week of the month, with about 47 percent on a weekly basis.
However, the spending value remained lower than Shaaban’s peak, and remained quiet over the next few months, with a weekly value of 9 billion riyals, which is clearly lower than Shaaban’s peak.
The value of consumer spending during the fourth week of Shaban (the week ending April 2, 2022) reached 1443 this year, the highest level ever, amounting to 14.1 billion riyal, an increase of 31.7 percent over the previous week. Then, in the following week – the first week of Ramadan – it dropped by 31.4 percent to 9.6 billion Saudi Riyals, but it actually recovered to 10.0 billion Saudi Riyals during the second week of Ramadan ( the week ending 9 April 2022). to reach.
It remains to be seen whether the pattern of Saudi consumer spending last year will also emerge this year. Spending data for the third week of Ramadan (the week ending April 23) of the Central Bank will be published this Tuesday, April 25th.
Interestingly, Saudi consumer spending moves up and down in waves during the months of the Hijri year, as evidenced by Sama’s weekly data.
Spending usually peaks during the second or, less frequently, third week of the month, while the first and last weeks of the month are usually characterized by quiet activity and reduced spending.
Saudi Consumer Expenditure The activity of the Saudi consumer is characterized by high fluctuations during the pre-Ramadan and Ramadan periods.
Ramadan Expenditure Forecast: Survey
According to a study by Toluna Consumer Confidence, one in two people in Saudi Arabia plans to spend more during the current month of Ramadan compared to the same month last year.
Survey results show that 46 percent of respondents in Saudi Arabia plan to spend more of Ramadan this year compared to Ramadan 2021.
However, 29 percent of respondents intend to have a spending habit similar to last year’s two symbols.
Among the 46 percent of the group who indicated plans to spend more Ramadan this year, 35 percent said they would spend a little more than last year, while the remaining 11 percent said “too much.”
Expected cost by category …
41 percent of respondents plan to spend more on entertainment this year.
39 percent of respondents will spend more on ordering food this year than last year.
90% plan to buy Eid gifts for their families and friends.
The most common gift options are sweets, money, toys, games and perfume.
In terms of consumer spending habits on holiday gifts, the study showed that 57 percent of respondents plan to spend more on gifts this year than last year.
People are ready to spend more on gifts this year as life returns to normal after two years of pandemic, social distance and disruption of traditional social gatherings.
In addition, the study indicates that one in two people – an estimated 53 percent – plan to travel domestically during Eid al-Fitr, with the most popular destinations Jeddah and Mecca, show study results.
35 percent of respondents plan to travel abroad, including the United Arab Emirates and Egypt.
At the same time, 37 per cent of respondents said they would spend more on travel during the festive season this year compared to last year, 29 per cent indicated that their spending would remain the same, and 20 per cent said they would spend less.
While fashion-related shopping is moving toward e-commerce, shopping in categories such as groceries, chocolates and sweets is expected to be offline during Ramadan, compared to other times of the year.
The shopping channel for most of the remaining categories is expected to remain the same during Ramadan and the rest of the year.