Talaat Moustafa Group's Saudi subsidiary signed a preliminary agreement with PIF-owned ROSHN Group to form a joint company exploring a mixed-use development in Riyadh expected to comprise more than 55,000 residential units, alongside retail, commercial, hospitality, entertainment, healthcare and education facilities. TMG Saudi will hold 51% of the joint company and ROSHN 49%, following a 7 June memorandum of understanding under PIF's urban development and livability ecosystem, part of its 2026-2030 strategy and the Kingdom's 70% homeownership target.
The minority stake shows that PIF is bringing in execution expertise. Developers who want to win Saudi residential projects should focus on improving their delivery track record instead of just acquiring more land.
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School fees hit the card data
Point-of-sale spending fell 2.8% to SR14.19 billion ($3.79 billion) in the week ended 15 August across 249.68 million transactions, down 1.5%, while education transactions jumped 62.7% week on week to SR446.08 million. Food and beverages led at SR2.2 billion, down 3.7%, and Riyadh accounted for SR4.84 billion across 79.80 million transactions.
The 62.7% increase in education spending, despite a 2.8% overall decline, reflects a calendar effect rather than increased consumer confidence. Households shifted funds rather than increasing total spending.
Confidence at fifty-six seven
Saudi Arabia's Business Confidence Index rose to 56.7 in August from 56.5 in July, holding above the 50-point neutral threshold, according to the General Authority for Statistics. The industrial sector's index climbed to 55.8 and the services index rose to 56.1, after the overall reading dropped to 52.1 in March amid regional tensions and rebounded to 54.5 in April.
Finance directors preparing Saudi budgets for next year should interpret the figure 56.7 as an indicator of continued customer spending expectations, while the March value of 52.1 reflects the pace of change in these expectations.
Cards flat, phones compounding
Mobile payments in Saudi Arabia ran at SAR 13,100 a second in July, up from SAR 4,200 a second in July 2021 — a 210% rise across five years, and around SAR 34 billion for the month. Card sales came in at SAR 25.7 billion in the same month, up 0.3% year on year, while e-commerce set a record at SAR 37.6 billion, up 26%.
When pitching to Saudi merchants, payment infrastructure vendors should highlight the 26% e-commerce figure instead of focusing on the 0.3% card statistic. This growth is happening in an area where their buyers are not fully meeting demand.
