Saudi education spending surges 91.5% amid school return 

Saudi education spending surges 91.5% amid school return 
Education was the only sector to register positive growth during the week. Shutterstock
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Updated 26 February 2025
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Saudi education spending surges 91.5% amid school return 

Saudi education spending surges 91.5% amid school return 
  • Overall POS transactions in the Kingdom declined by 12.1%, dropping to SR11.77 billion from SR13.4 billion the previous week
  • Spending on clothing and footwear saw the sharpest decline, falling 27.5% to SR663.16 million

RIYADH: Education spending in Saudi Arabia surged by 91.5 percent to SR220.76 million ($58.8 million) between Jan. 12 and 18, fueled by students returning to school after the midyear break. 

According to the latest point-of-sale transactions bulletin, this sector was the only one to register positive growth during the week, with the number of transactions rising by 60 percent to 153,000. 

The education sector experienced a 44.4 percent drop in transaction value to SR115.2 million from Jan. 5 to 11, before rebounding this week.

Overall POS transactions in Saudi Arabia declined by 12.1 percent, dropping to SR11.77 billion from SR13.4 billion the previous week, as spending in other sectors cooled, revealed the bulletin issued by the Saudi Central Bank. 

Spending on clothing and footwear saw the sharpest decline, falling 27.5 percent to SR663.16 million. Expenditure on hotels followed with a 19.9 percent dip to SR324.45 million, while recreation and culture recorded a 19.7 percent drop to SR221.8 million. 

Spending on food and beverages recorded a decrease of 9.2 percent to SR1.73 billion, claiming the biggest share of the total POS value. Expenditure in restaurants and cafes followed, recording an 18 percent decrease to SR1.73 billion. 

Miscellaneous goods and services accounted for the third biggest POS share with a 12.3 percent downstick, reaching SR1.42 billion. 

Spending in the leading three categories accounted for approximately 41.5 percent or SR4.8 billion of the week’s total value. 

At 2.1 percent, the smallest decrease occurred in spending on construction materials, leading total payments to reach SR340.1 million. 

Expenditures on transportation followed dipping by 2.6 percent to SR661.6 million, while public utilities recorded a 6 percent fall to SR48.1 million. 

Geographically, Riyadh dominated POS transactions, representing around 35.5 percent of the total, with expenses in the capital reaching SR4.18 billion — a 9 percent decrease from the previous week. 

Jeddah followed with a 12.5 percent dip to SR1.71 billion, and Dammam came in third at SR602.91 million, down 7.1 percent. 

Madinah experienced the most significant decrease in spending, dipping by 19.6 percent to SR471 million. 

Hail and Makkah followed recording decreases of 18.6 percent and 17 percent reaching SR171.87 million and SR497.28 million, respectively. 

Madinah and Makkah saw the largest decreases in terms of number of transactions, slipping 13.5 percent and 12.7 percent, respectively, to 7.98 million and 8.18 million transactions. 

The Kingdom’s POS transactions saw a decline in the week from Jan. 5 to 11, with the total number of transactions dropping by 3.7 percent to 216.5 million. The value of transactions fell by 11.2 percent to SR13.4 billion. 

Key sectors experienced significant contractions, including telecommunications at 20.4 percent and transportation at 20.9 percent. The downturn in spending was also evident in discretionary sectors like clothing and footwear, which saw an 18.7 percent drop in transaction value.

The hotel sector was the only industry to show growth, with a 12.5 percent rise in the number of transactions and a 1.1 percent increase in transaction value. 

Riyadh and Jeddah, the two largest markets, saw transaction values decline by 10 percent and 7.8 percent, respectively, signaling a broader slowdown across major cities.


Saudi banks extend $2.4bn in home loans in Feb.; demand broadens across nationals and expats

Saudi banks extend $2.4bn in home loans in Feb.; demand broadens across nationals and expats
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Saudi banks extend $2.4bn in home loans in Feb.; demand broadens across nationals and expats

Saudi banks extend $2.4bn in home loans in Feb.; demand broadens across nationals and expats

RIYADH: Saudi Arabia’s banks issued SR8.91 billion ($2.37 billion) in new residential mortgages to individuals in February — a 28.33 percent annual increase, according to official data.

Figures from the Saudi Central Bank, also known as SAMA, show that apartment lending recorded the highest growth during this period, rising by 46.45 percent to SR2.9 billion.

While houses continue to dominate residential real estate financing with a 62.6 percent share, this is down from 65.24 percent in February 2024 as demand gradually shifts toward apartments.

House loans posted strong growth of 23.05 percent, reaching SR5.57 billion, yet land financing stayed modest at SR436 million, with a minimal increase of 0.61 percent.

This momentum comes as Saudi Arabia pushes toward its Vision 2030 target of achieving 70 percent home ownership.

Demand is being fueled by citizens and a growing expatriate population. A March report by Knight Frank revealed that 72 percent of Saudis and expats aspire to own homes, with the figure soaring to 93 percent among high-income citizens earning more than SR50,000 per month. Among expats, 77 percent now express a desire to buy property in the Kingdom.

Despite the strong demand, affordability remains a challenge, according to Knight Frank — particularly in cities such as Riyadh, where apartment prices have climbed 75 percent since 2019 and villa prices are up 40 percent.

To address this, Saudi authorities are rolling out a wave of regulatory and urban planning reforms. In March, the Royal Commission for Riyadh City and the Council of Economic and Development Affairs unveiled initiatives aimed at stabilizing prices and expanding access to homeownership.

These include lifting restrictions on land transactions and development in key zones of northern Riyadh, unlocking 81.5 sq. km of land for new housing and commercial projects.

At the time, Finance Minister Mohammed Al-Jadaan said the move was expected to reduce price volatility, with new plots priced at no more than SR1,500 per sq. meter and made available to Saudi citizens over the age of 25.

As part of its broader Vision 2030 strategy, Saudi Arabia has also been liberalizing real estate laws to attract more foreign investment, especially in fast-growing sectors such as tourism, housing, and special economic zones.

In 2024, officials confirmed that new regulations are underway to expand foreign ownership rights in strategic projects such as NEOM and the Red Sea.

While foreigners can already own residential property in specific zones and access 99-year leases according to the Real Estate Saudi platform, most residential mortgages are concentrated among Saudi nationals, supported by programs like Sakani and Dhamanat.

​Foreign investment in Saudi Arabia’s commercial real estate sector is subject to specific regulations and approval processes. Foreign investors are llowed to own real estate necessary for conducting their licensed business activities, including property for offices and employee accommodation, provided they obtain the requisite approval from the Ministry of Investment.

Additionally, for real estate intended for investment purposes — such as buying, selling, or leasing — the investment must meet a minimum threshold of SR30 million, with a commitment to develop the property within five years, according to the Saudi Embassy website in the US.

These measures ensure that foreign investments align with Saudi Arabia’s broader economic objectives and development plans.


Lebanon central bank must counter money laundering and terrorist financing, new governor says

Lebanon central bank must counter money laundering and terrorist financing, new governor says
Updated 04 April 2025
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Lebanon central bank must counter money laundering and terrorist financing, new governor says

Lebanon central bank must counter money laundering and terrorist financing, new governor says

BEIRUT: Lebanon’s newly appointed central bank governor Karim Souaid said on Friday the bank must counter money laundering and terrorist financing.

He also said at a press conference that the bank would work to reschedule public debt and pay back depositors.


Office returns: Up to 59% of firms to increase investment in workplace fit-outs by 2030, says JLL 

Office returns: Up to 59% of firms to increase investment in workplace fit-outs by 2030, says JLL 
Updated 04 April 2025
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Office returns: Up to 59% of firms to increase investment in workplace fit-outs by 2030, says JLL 

Office returns: Up to 59% of firms to increase investment in workplace fit-outs by 2030, says JLL 

RIYADH: The global office sector is rebounding as companies scale back hybrid employment options, increasing demand for workspaces, a new survey shows.

The study by JLL, featured in the Global Office Fit-Out Costs Guide 2025, reveals that 59 percent of organizations are increasing investments in design and fit-outs. 

The report, which analyzes data from 68 cities across 40 countries, also highlights that office fit-out costs have risen in the past 12 months across all regions surveyed, with varying degrees of increase.

According to JLL, as in previous years, the highest fit-out costs are found in the US, Canada, and the UK, as well as Switzerland, Saudi Arabia, and the UAE.

Singapore and Japan also feature high in the list.

This correlates with the global office spaces market, which was valued at $3.1 trillion in 2022 and is projected to grow to $4.9 trillion by 2032. According to Allied Market Research, this represents a compound annual growth rate of 4.6 percent.

It also aligns with the growth of the office space market fueled by a rise in infrastructure projects for the commercial sector, including the development of new office buildings, business parks, and the renovation of workplaces in urban areas.

In a statement reflecting on the study, JLL’s CEO of Project and Development Services at Work Dynamics Cynthia Kantor said: “Five years following the start of the global pandemic, we continue to see the evolution and growing momentum toward the office sector.”

The JLL analysis further highlighted that multinational corporations must understand regional disparities in office fit-out costs to inform strategic planning.

Regionally, North America commands the highest office fit-out premium, with an average cost of 3,070 per sq. meter, well above the global average of 1,830 per sq. meter.

In Latin America, the average cost is 1,790, while in Europe, the Middle East, and Africa, the average price is 1,970. The Asia Pacific region offers the lowest average fit-out cost at $1,460.

Significant variations in office fit-out costs also exist between major urban areas. US cities lead the top 20 municipalities with the highest office fit-out costs, alongside prominent locations like Vancouver, Tokyo, London, and Dubai.

Fast-growing cities in India, South Africa, Vietnam, and China offer some of the lowest fit-out costs despite the fact they are seeing rapid construction growth and an evolving cost landscape.

Macro-economic impacts

The JLL report further sheds light on how, in the markets evaluated, increases in fit-out costs over the past 12 months were primarily driven by inflation, rising material costs, and currency fluctuations. 

Additionally, 75 percent of the markets saw a rise in raw material prices, while 50 percent experienced labor shortages that contributed to higher construction costs.

“Organizations need to factor in these potential cost factors throughout global construction when developing their fit-out budgets,” the JLL statement said.

It added that builder works or construction account for the largest component of fit-out costs  — 37 percent —  in all regions except Latin America. 

These costs can be most susceptible to raw material prices and supply chain risks. Mechanical and electrical expenses account for the second-largest cost, varying from 20 percent to 45 percent.

Sustainability continues to fuel growing demand

The study by JLL explains that as interest in healthier, energy-efficient workspaces surges and supply struggles to meet demand, the need for sustainable fit-outs is growing.

According to the survey, 60 percent of markets have seen a rise in client inquiries for more sustainable fit-outs over the past year.

This aligns with recent JLL Future of Work research, which revealed that 66.66 percent of organizations worldwide plan to increase their investment in sustainability over the next five years.

“A large part of sustainable fit-out costs are dedicated to mechanical and electrical services, which, across all countries, were found to account for an average of 29 percent of total fit-out expenses, with some regions reporting 40-50 percent of costs,” the JLL report said.

“However, these upfront costs are often where the greatest long-term cost efficiencies can be found, as research has also shown that investing in upgrades to M&E services can save between 10 percent - 40 percent on operational energy costs, depending on the level of investment and upgrade,” it added.

Investing in energy-efficient components during fit-outs and consulting with sustainability experts early in the planning phase can help incorporate sustainability requirements and costs into decision-making, thereby minimizing the risk of late adjustments, the JLL statement justified.

Optimism for offices amid caution over potential challenges

Despite a positive outlook, office fit-out development faces several challenges.

That said, the report underlines a need for global firms to address local and regional issues such as labor shortages, talent acquisition, and material availability, as well as liquidity to ensure project success.

The report also suggests that economic and political uncertainty, particularly trade and tariff implications, continue to create instability.

Consequently, early planning for lease expirations and strategic investment in existing buildings is set to benefit both landlords and occupiers, helping to manage costs and navigate the tighter timeframes caused by hesitancy around investment.

“The global office sector faces a complex landscape of challenges and opportunities in 2025,” the Director of Research and Strategy at Work Dynamics Europe, the Middle East, and Africa, Ruth Hynes, said.

“As corporate clients grow and expand their footprints, we anticipate the office construction will remain active even amid market uncertainty, and encourage early, strategic planning to ensure the success of fit-out initiatives,” Hynes added.


Oil Updates — crude set for worst week in months over Trump’s new tariffs

Oil Updates — crude set for worst week in months over Trump’s new tariffs
Updated 04 April 2025
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Oil Updates — crude set for worst week in months over Trump’s new tariffs

Oil Updates — crude set for worst week in months over Trump’s new tariffs

LONDON: Oil prices fell further in early Asian trade on Friday, and were on track for the worst week in months over US President Donald Trump’s new tariffs, stoking concerns over a global trade war that could weigh on oil demand.

Brent futures fell 60 cents, or 0.86 percent, to $69.54 a barrel by 9:04 a.m. Saudi time. US West Texas Intermediate crude futures were down 61 cents, or 0.91 percent, to $66.34.

Brent was on course for its biggest weekly loss in percentage terms since the week ended Oct. 14, and WTI since the week ended Jan. 21.

Adding to the bearish sentiment was a decision by the Organization of Petroleum Exporting Countries and their allies to advance their plan for oil output increases, with the organization now aiming to return 411,000 barrels per day to the market in May, up from 135,000 bpd as initially planned.

“This brings forward the expected surplus that we see in the oil market this year. More OPEC+ supply should translate to more medium sour crude oil and a wider Brent-Dubai spread,” analysts at ING said on Friday. “This spread has seen an unusual discount for much of the year.”

Both benchmarks started plunging lower since Trump’s news conference on Wednesday afternoon, which he called “Liberation Day” as he announced a 10 percent baseline tariff on all imports to the US and higher duties on dozens of the country’s biggest trading partners.

Imports of oil, gas and refined products were exempted from Trump’s sweeping new tariffs, but the policies could stoke inflation, slow economic growth and intensify trade disputes, weighing on oil prices. 


Closing Bell: Saudi main index slips to close at 11,882.65

Closing Bell: Saudi main index slips to close at 11,882.65
Updated 03 April 2025
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Closing Bell: Saudi main index slips to close at 11,882.65

Closing Bell: Saudi main index slips to close at 11,882.65

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 142.40 points, or 1.18 percent, to close at 11,882.65.

The total trading turnover of the benchmark index was SR5.53 billion ($1.47 billion), as 58 stocks advanced and 184 retreated.

Similarly, the Kingdom’s parallel market Nomu lost 445.6 points, or 1.43 percent, to close at 30,640.93. This came as 27 listed stocks advanced while 67 retreated.

The MSCI Tadawul Index lost 20.19 points, or 1.32 percent, to close at 1,504.15.

The best-performing stock of the day was Fitaihi Holding Group, whose share price surged 9.65 percent to SR4.43.

Other top performers included Zamil Industrial Investment Co., whose share price rose 6.57 percent to SR38.85, as well as Mobile Telecommunication Co. Saudi Arabia, whose share price surged 4.97 percent to SR11.82.

Tabuk Agricultural Development Co. recorded the most significant drop, falling 8.58 percent to SR12.36.

Arabian Co. for Agricultural and Industrial Investment also saw its stock price fall 7.59 percent to SR53.60.

Raydan Food Co. also saw its stock price decline 7.44 percent to SR19.16.

Horizon Food Co. has announced the board resolution to transfer from Nomu to the main market and appoint Al-Istithmar Capital as a financial adviser for the transition. According to a Tadawul statement, the transfer is contingent upon approval from the Capital Market Authority in accordance with listing regulations and is subject to meeting all requirements set by the Saudi Exchange.

Horizon Food Co. ended the session at SR40, up 2.56 percent.

Emaar, The Economic City seeks to convert SR4.12 billion worth of debt owed to the Public Investment Fund into capital. 

The proposed debt conversion is one component of the company’s capital optimization plan announced in September, designed to stabilize the entity’s financial and operational positions as well as optimize its capital structure to boost its ability to move forward with its growth plans.

Emaar, The Economic City ended the session at SR14.44, down 0.28 percent.

The Saudi Stock Exchange has announced the suspension of trading in the shares of seven listed companies for one session on Thursday due to the firms’ failure to disclose their annual financial statements ending Dec. 31 within the statutory period specified in the Securities Offerings and Continuing Obligations Rules issued by the CMA Board.

From the main market, the firms include Saudi Industrial Development Co., Development Works Food Co., and National Gypsum Co., as well as Arabian Contracting Services Co. and Al Jouf Cement Co.

From the parallel market, the companies are Keir International Co. and Knowledge Net Co.