THE BASELINE.
THE NUMBER
billion riyals, a week of card spending, down 6.3%
Point-of-sale spending fell to SR12.92 billion in the week ending 19 September, down 6.3% from the previous week, with 241.1 million transactions recorded. But this doesn’t necessarily mean consumers are cutting back. Education spending fell sharply by 42.8% to SR180.69 million, and spending on books and stationery dropped 18.4%. Meanwhile, furniture and home supplies spending rose 11.4% to SR503.8 million, which economist Talat Hafiz says is likely due to National Day promotions. We believe the drop in education spending is because most term fees and supplies have already been paid, though the data doesn’t confirm this. The figures for the week that includes National Day will be released soon, and those will be worth watching.
THREE SIGNALS
PIF launched Tawrid Co. for Financing Solutions, a digital platform connecting buyers, suppliers and funders with products including early settlement against approved invoices, as the Kingdom works to widen SME financing. The Financial Sector Development Program targets raising SMEs' share of bank financing to 20% by 2030, while the latest IMF data show SME loans accounted for 11% of total bank loans in 2025.
Invoice-backed credit is the chosen mechanism to reach 20%, so a finance director at a Saudi SME should prepare payables data instead of another loan application.
Abdullah Alkherb
BlackRock's report puts Saudi Arabia at 359 of the 590 private-capital funds closed in the Middle East since 2015, or about 61%, against 143 in the UAE and 88 across other regional markets. Middle East sovereign wealth funds allocate 43.2% of assets to private capital against 35% for peers elsewhere, regional venture capital averaged $2.4 billion of deal value a year between 2021 and 2025 with a peak of $3.5 billion in 2022, and the GCC is entering an estimated $2.1 trillion investment cycle through 2030.
Holding 359 of 590 regional funds is not just a fundraising advantage; it is a gravitational force. Managers must now be in Riyadh to participate in the market.
Abdulrahman Al Mottahar
Saudi Minister of Municipalities and Housing Majed Al-Hogail said the Kingdom's facility management market has surpassed $50 billion, driven by urban expansion and national projects including preparations for Expo 2030 Riyadh and the 2034 FIFA World Cup. He was speaking at the third International Facility Management Conference and Exhibition in Riyadh, which drew more than 200 public and private entities.
This market grows through operating budgets rather than capital budgets. Therefore, owners of Saudi facilities services firms should pursue multi-year contracts instead of bidding on individual projects.
Mohammed Altuwaijri
THE MOVE
Two insurers, two sizes of stop
The Insurance Authority suspended UCA from issuing or renewing policies across all its products. UCA's accumulated losses reached SR459.57 million by the end of Q2, 115% of its capital, and its shares have been suspended since 13 September while a court considers a creditor's petition to start liquidation. IA Also suspended ACIG from issuing new comprehensive motor policies, citing violations of supervisory instructions. Renewals and ACIG's other products continue. (Argaam)
Consider the extent of each suspension. UCA is unable to sell any products, while ACIG cannot offer even a single product to new customers. The insurance authority issued both a total and a limited suspension in the same week. The timing for ACIG is also problematic. Just two days before, the CMA approved its SR9 million capital increase to meet the SR300 million minimum required for insurers, but this increase still needs approval from shareholders.
ACIG's vote and the court's decision about UCA. If you have fleet or group coverage, make sure to check your insurer's status before you renew. ACIG is still offering renewals, but they are not issuing new motor policies.
FROM THE FIELD
We have been named the exclusive partnership sponsor for the 12th Riyadh Economic Forum, 12–14 October, under royal patronage and organized by the Riyadh Chamber. One key point to note if you are considering it: the forum's recommendations are presented to the Royal Court, and many have become government initiatives and decisions. Eleven sessions have produced 57 studies. This one covers five themes, from traffic congestion to water security, and we are choosing partners based on what each one adds. For more info, contact us: sponsorship@impactors.com.sa
