Saudis dig deep into their wallets as Eid Al-Adha drives spending surge

Arab News

14 hours ago

RIYADH: Saudi Arabia's Eid Al-Adha holiday is proving to be a major economic driver, fueling robust growth across the Kingdom's livestock, retail, and domestic tourism sectors.
Coinciding with the annual Hajj pilgrimage, the extended public holiday channels billions of riyals into the economy as businesses ramp up operations to meet soaring seasonal demand.
Livestock markets are bustling, shopping centers are teeming with eager consumers, and hotels and resorts across the Kingdom are reporting high occupancy rates — all pointing to a dynamic shift in consumer behavior and an increasingly diversified economic landscape.
Retail activity, in particular, is experiencing a seasonal boom. From glittering gold souqs and fashion boutiques to thriving e-commerce platforms, shoppers are on the lookout for Eid gifts, festive attire, and high-end products.
A recent survey by Toluna and MetrixLab shows that 47 percent of Saudi consumers expect to spend more this Eid than last year. Over half (51 percent) are boosting their shopping budgets, while 44 percent are allocating more for dining out.
Among the most in-demand items this season are fashion apparel, gold and diamond jewelry, perfumes, and electronics. In response, retailers are rolling out aggressive promotions, with 49 percent of consumers attracted to price discounts, 40 percent favoring bundled deals, and 33 percent looking for cash-back incentives.
The digital retail landscape is also witnessing significant momentum. The survey highlights that 31 percent of consumers now fall into the 'heavy digital shopper' category — individuals who make purchases daily or several times a week.
'Eid gifting remains a core element of celebrations, with 89 percent of KSA residents planning to give gifts in 2025,' the report stated.
The report added: 'Luxury gifting continues to rise, with 41 percent opting for fashion cloths, up from 36 percent in 2024, dates, and sweets 45 percent, and major electronic devices gaining popularity, rising from 22 percent to 24 percent.'
Fragrances and gourmet items such as dates and chocolates also continue to dominate gifting choices, reflecting cultural values and the desire to present meaningful and luxurious tokens of appreciation.
The trend of self-gifting, while slightly down from 2024, remains strong, indicating the growing role of Eid as a moment for personal indulgence.
The tourism and hospitality sector stands out as one of the biggest winners during Eid Al-Adha, with hotels, resorts, and travel operators across Saudi Arabia witnessing a surge in demand.
JS Anand, founder and CEO of Leva Hotels, told Arab News that the holiday's timing alongside the Hajj pilgrimage makes it a uniquely impactful season, not only for spiritual observance but also for economic momentum driven by both local and international tourism.
'Eid Al-Adha will increasingly serve as a key driver for business and consumption, benefiting both local and regional markets. Beyond its economic impact, the holiday is also a time for spiritual reflection, generosity, and community, while highlighting Saudi Arabia's vibrant culture and hospitality,' Anand said.
He added: 'Increased consumer spending during this period benefits industries such as transportation, hospitality, and retail, while the extended holiday period further amplifies economic activity.'
Speaking on shifting consumer behaviors, Anand noted that travelers are becoming more discerning and value-conscious. While they are not necessarily looking for the cheapest option, they want to ensure they're getting meaningful value for what they pay.
He added: 'Guests increasingly expect hotels to deliver not just a place to stay, but a personalized, experience-rich offering that resonates with their lifestyle and preferences.'
Domestic tourism continues to thrive, but international travel has surged in popularity among Saudi residents.
According to Wego, 96.12 percent of Eid-related travel searches in the Kingdom are now for international destinations, up from 87.34 percent last year.
Top destinations include Egypt, India, and the UAE, as well as Pakistan, Turkiye, and Bangladesh, along with a rising interest in European and Southeast Asian locales such as Italy, Thailand, and Malaysia.
Despite the international travel boom, domestic destinations like Jeddah, Riyadh, and Madinah, alongside Dammam and Abha, remain popular for their cultural attractions and spiritual experiences.
Wego data suggests that cultural exploration is becoming a primary driver in destination selection, as travelers seek meaningful connections during the holiday.
Anand affirmed this trend: 'The hospitality sector must be agile, crafting offerings that cater not only to the loyal domestic traveler but also to the rising wave of international visitors.'
He continued: 'For hotels, this means providing thoughtfully tailored packages, seamless digital booking experiences, and culturally resonant, memorable stays that appeal to both local guests and the growing base of inbound international tourists discovering Saudi Arabia during the festive Eid season and beyond.'
Businesses are also preparing for the holiday through targeted promotions and operational enhancements. 'Today, it's all about creating value-added, memorable, immersive experiences and curating unique, personalized offerings to meet the surge in demand and deliver exceptional value.'
Mohammed Al-Mu'ajil, a tourism expert, told Arab News that Saudi Arabia is seeing remarkable shifts in travel and consumer behavior this Eid season.
'In 2025, Saudi Arabia witnessed a significant rise in consumer spending, with total expenditure reaching approximately SR148 billion ($39.46 billion) in March, the highest level since May 2021, reflecting a 17 percent increase compared to the previous year. This growth is attributed to the Ramadan and Eid Al-Fitr seasons, in addition to the Umrah season,' Al-Mu'ajil said.
With more people shopping and traveling, businesses are also recalibrating their approach to Eid.
Al-Mu'ajil also highlighted the increasing role of technology and digital outreach stating: 'Companies are increasingly relying on digital channels to engage with customers, with 94.03 percent of internet users in the Kingdom active on social media platforms such as X, TikTok, and Snapchat.'
He also explained that domestic hotel nights increased by 14 percent, while international hotel nights rose by 13 percent.
The Kingdom recorded a 48 percent increase in international visitors during the first quarter compared to the previous year, driven by Vision 2030 initiatives and relaxed visa regulations.
International destinations are seeing strong demand from Saudi tourists, particularly Egypt, Turkiye, and Dubai, due to their geographic proximity, cultural similarities, and diverse tourism offerings,' he said.
'Red Sea cruises have also emerged as a new and appealing option, offering luxurious and comprehensive travel experiences.'
He added that domestic travel remains a strong draw, stating: 'On the domestic front, cities such as AlUla, Abha, Al-Baha, Jeddah, and Riyadh have become favored destinations for Saudi travelers. These cities are distinguished by their natural and cultural diversity as well as advanced infrastructure, making them attractive to families and holidaymakers during the Eid season.'
Al-Mu'ajil added that digital platforms are increasingly central to consumer engagement, noting that the number of e-commerce users in Saudi Arabia is projected to reach 34.5 million by the end of 2025.
'With Internet penetration expected to rise from 66.7 percent in 2023 to 74.7 percent by 2027, digital engagement is reshaping how Saudis prepare for Eid, from online bookings to promotional offers,' he said.
Increased spending
More than half — 51 percent — of consumers in the Kingdom said they are willing to spend more on Eid gifts this year.
According to the Toluna and MetrixLab report, this is driven by a mix of improved financial confidence and a desire to make the holiday more special after years of pandemic-related limitations.
About 38 percent of consumers expressed a desire to make this Eid more special to compensate for pandemic-era limitations, while 36 percent noted improved financial standing.
In addition, 35 percent plan to expand their gift lists to include more people, and 30 percent expressed a desire to be more generous with their families and friends.
These sentiments are reflected in higher spending across multiple categories. Fashion apparel, fragrances, and electronics have seen a significant bump, while gold and diamond jewelry purchases have also increased slightly.
The trend underscores Eid's growing role not just as a religious and cultural moment, but as a peak period of emotional expression through gifting and consumer engagement
With 89 percent of consumers planning to give gifts, and significant growth in retail and travel expenditures, Eid Al-Adha is proving to be not just a spiritual cornerstone — but a vital pillar of the Kingdom's economy.
The economic impact of Eid Al-Adha is particularly evident in the livestock sector, which sees a surge in demand — particularly in sheep and goats.
Local farmers, traders, and international suppliers navigate challenges such as rising feed costs and supply chain constraints while ensuring a steady supply.
Although the Kingdom's livestock market remains robust, escalating feed prices have put upward pressure on animal prices, prompting some households to consider shared sacrifices or smaller livestock options.
Seasonal livestock markets are also set up across major cities to accommodate the peak demand period.
The evolving behavior of Saudi consumers — seeking quality, cultural relevance, and immersive experiences — indicates broader societal shifts and economic resilience.
As Vision 2030 continues to reshape the Kingdom's economic landscape, seasonal events like Eid Al-Adha serve not only as cultural milestones but also as indicators for consumer confidence and economic diversification.