Saudi Arabia's Expat Remittances Surge to SR144 Billion in 2024, Highest Since 2021
Saudi Arabia's expatriate remittances have reached an all-time high since 2021, with a 14% year-on-year increase to SR144.2 billion in 2024, according to official figures released by the Saudi Central Bank. This surge marks a significant recovery for the Kingdom's remittance sector, signaling continued strong financial flows from the substantial expatriate community residing in Saudi Arabia.
The amount for 2024 surpasses the SR126.8 billion recorded in 2023, reflecting the ongoing contribution of foreign workers to the Kingdom's economy. Expatriate remittances continued to rise in most months of 2024, with the exception of January and February, the Central Bank's data revealed.
December's Record Surge
The month of December saw the highest remittance outflow, with transfers surging to approximately SR14 billion, the highest monthly figure since March 2022. This sharp increase highlights the continued demand for expatriate services in Saudi Arabia and the strong ties between the Kingdom and workers' home countries, many of whom rely on these remittances as a key financial lifeline.
The robust growth in remittances in 2024 is seen as a reflection of the stable job market and the strong economic activity within Saudi Arabia. The Kingdom has been pushing forward with reforms to attract skilled labor and encourage employment across various sectors, boosting economic performance.
Saudis' Transfers Abroad Also Rise
In parallel, Saudi nationals also saw an increase in their financial transfers abroad. In 2024, SR68.6 billion was sent overseas by Saudis, marking an 11% increase from 2023. Like expatriate remittances, Saudi transfers also grew in all months of 2024 except for March and June.
Impact of Labor Market Reforms
Saudi Arabia's push for labor market reforms has been a key component in stabilizing the expatriate workforce and ensuring their continued participation in the country's economy. Recent reforms include adjustments to employment contract termination notices, which now require a 30-day notice by the worker and 60-day notice by the employer for contracts without a specified duration.
Additionally, maternity leave has been extended from 10 weeks to 12 weeks, further supporting the rights and welfare of workers in the Kingdom. These labor law amendments are part of broader efforts to create a more competitive and sustainable labor market for both expatriates and nationals.
Growing Expat Community
With a population exceeding 35.3 million as of mid-2024, nearly half of Saudi Arabia's population is expatriates, with 44.4% or approximately 15.7 million non-Saudis residing in the Kingdom. This large and diverse expat community plays an integral role in various industries, from construction to healthcare, retail, and education, contributing significantly to Saudi Arabia's economic development.
Saudi Arabia's continued focus on improving labor conditions and supporting economic growth ensures that expatriate remittances will remain an essential part of the Kingdom's financial landscape for years to come.
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