Saudis display outstanding spending power

Manama: Saudis are expected to spend over 22 billion Saudi riyals (Dh21 billion) during the Eid days, a business expert has said.

“Saudis have an outstanding purchasing power, especially during religious and social occasions and long breaks,” Wasef Kabli, a member of the commercial commission in the Red Sea city of Jeddah, said. “They are expected to spend more than SR22 billion during the Eid days both inside Saudi Arabia and abroad. Many families have opted to spend the days in neighbouring countries or in Sharm Al Shaikh, while other have selected the Eastern Region or the capital Riyadh,” he told local Arabic daily Al Sharq.

Most of the money is spent on accommodation in hotels or resorts and on transport, he said.

“The average daily spending is around SR300 ($80) per person in the city, such as Riyadh or Jeddah, but it goes up to SR2,000 ($534) in local resorts and up to SR3,000 ($800) in special hotels in Dubai and Sharm Al Shaikh,” he said.

Food and clothes are the sectors that benefit most from the spending habits of the Saudis, he said.

“Families go out every day and spend their money. In fact, some shops have problems securing their money after they shut down and I wish banks would open during Eid days to allow traders to deposit their cash so that they do not lose it,” he said.

According to the US-Saudi Arabian Business Council, the Saudi Arabia’s 2012 budget marks an all-time high as the government continues to invest in human and physical infrastructure.

Total expenditures are budgeted at SR690 billion, an increase of 19 per cent over the budgetary figure for 2011. Investment spending has increased to SR265 billion, with education and training receiving the largest share with 24 per cent of the total spending SR165 billion.