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Daily Tribune
11-02-2025
- Business
- Daily Tribune
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.
Gulf Insider
07-02-2025
- Business
- Gulf Insider
Saudi Arabia: Expat Remittances Jump 14% In 2024, The Highest In 2 Years
Foreign remittances from Saudi Arabia recorded a significant increase of 14 percent on an annual basis during the year 2024, reaching SR144 billion ($38.4 billion), which marks the highest level since 2022, according to the monthly statistical bulletin issued by the Saudi Central Bank (SAMA). The volume of remittances amounted to SR126.8 billion ($33.8 billion) in 2023, compared to SR143 billion ($38 billion). The increase was mainly influenced by the growth in employment rates and the improvement of wages in some sectors, according to a report in Asharq Al-Awsat newspaper. Economic analyst Rawan bint Rabian attributed this increase to strong economic growth, in addition to increased employment. 'The expansion in implementing Vision 2030 projects led to a surge in demand for foreign labor, especially in the construction and services sectors. The data indicates that the number of non-Saudi workers in the private sector increased to 8.9 million in 2024, an increase of 3.5 percent on an annual basis, which was directly reflected in the volume of remittances,' she said. Rawan reported that some sectors witnessed an improvement in salaries, as the average monthly wages for foreign workers in the construction and services sector reached SR4,200 ($1,119) compared to SR3,850 ($1,026) in 2023, which increased the volume of transferable income. The stability of the Saudi riyal against foreign currencies also contributed to supporting the growth of remittances, as the exchange rate remained stable at SR3.75 to the US dollar. She said that the rising cost of living in Saudi Arabia played a role in increasing remittances, as the consumer price index rose by 2.5 percent in 2024, prompting many to send a larger portion of their income abroad, in addition to the growth in rental prices and basic services. Mohammed Al-Faraj, senior director of Asset Management at Arbah Capital, attributed this increase to several key factors, including the increase in the number of foreign workers, the improvement of economic conditions in some countries to which foreign workers belong, the stability of exchange rates, and the development of financial services that facilitate the movement and transfer of funds. Al-Faraj said that this increase is reflected in the Saudi economy in several ways, including increased outward cash flows, which may affect the balance of payments, and a limited impact on local liquidity, as remittances represent 5.25 percent of total deposits in Saudi banks, according to the SAMA report for November 2024. 'It is difficult to predict the continuation of this trend in the coming years, as it depends on several factors, including changes in the local labor market, global economic conditions, technological developments, and digital banks,' he noted.
Saudi Gazette
06-02-2025
- Business
- Saudi Gazette
Expat remittances jump 14% in 2024, the highest in 2 years
Saudi Gazette report RIYADH — Foreign remittances from Saudi Arabia recorded a significant increase of 14 percent on an annual basis during the year 2024, reaching SR144 billion ($38.4 billion), which marks the highest level since 2022, according to the monthly statistical bulletin issued by the Saudi Central Bank (SAMA). The volume of remittances amounted to SR126.8 billion ($33.8 billion) in 2023, compared to SR143 billion ($38 billion). The increase was mainly influenced by the growth in employment rates and the improvement of wages in some sectors, according to a report in Asharq Al-Awsat newspaper. Economic analyst Rawan bint Rabian attributed this increase to strong economic growth, in addition to increased employment. "The expansion in implementing Vision 2030 projects led to a surge in demand for foreign labor, especially in the construction and services sectors. The data indicates that the number of non-Saudi workers in the private sector increased to 8.9 million in 2024, an increase of 3.5 percent on an annual basis, which was directly reflected in the volume of remittances,' she said. Rawan reported that some sectors witnessed an improvement in salaries, as the average monthly wages for foreign workers in the construction and services sector reached SR4,200 ($1,119) compared to SR3,850 ($1,026) in 2023, which increased the volume of transferable income. The stability of the Saudi riyal against foreign currencies also contributed to supporting the growth of remittances, as the exchange rate remained stable at SR3.75 to the US dollar. She said that the rising cost of living in Saudi Arabia played a role in increasing remittances, as the consumer price index rose by 2.5 percent in 2024, prompting many to send a larger portion of their income abroad, in addition to the growth in rental prices and basic services. Mohammed Al-Faraj, senior director of Asset Management at Arbah Capital, attributed this increase to several key factors, including the increase in the number of foreign workers, the improvement of economic conditions in some countries to which foreign workers belong, the stability of exchange rates, and the development of financial services that facilitate the movement and transfer of funds. Al-Faraj said that this increase is reflected in the Saudi economy in several ways, including increased outward cash flows, which may affect the balance of payments, and a limited impact on local liquidity, as remittances represent 5.25 percent of total deposits in Saudi banks, according to the SAMA report for November 2024. "It is difficult to predict the continuation of this trend in the coming years, as it depends on several factors, including changes in the local labor market, global economic conditions, technological developments, and digital banks," he noted. Page 2
