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Arab Times
4 days ago
- Business
- Arab Times
From Dubai to Doha to Kuwait: Where Do Expats Save the Most? The Answer May Surprise You
KUWAIT CITY, May 31: The Gulf Cooperation Council (GCC) nations—comprising Saudi Arabia, the UAE, Kuwait, Qatar, Oman, and Bahrain—have long been magnets for expatriates seeking tax-free income and better financial prospects. But when it comes to actual savings potential, not all GCC countries offer the same return on effort. GCC: A Remittance Powerhouse for Expats In 2024, the Gulf Cooperation Council (GCC) countries continued to be significant sources of global remittances. Saudi Arabia experienced a notable increase, with expatriate remittances reaching SR144.2 billion ($38.45 billion), marking a 14% rise from the previous year and the highest in three years. Conversely, the United Arab Emirates saw a slight decline in remittance outflows, totaling $38.5 billion, a nearly 3% decrease from 2023. Savings vs Cost While UAE and Saudi Arabia boast massive expat populations and robust economies, the high cost of living in cities like Dubai, Abu Dhabi, and increasingly, Riyadh, can significantly erode disposable income. Smaller GCC nations like Kuwait and Oman, while sending lower total remittances, may provide expats with greater per-capita savings opportunities. Top Contenders for Expat Savings 1. Kuwait: The Silent Saver Kuwait stands out for its mix of high, tax-free salaries (especially in oil, healthcare, and engineering sectors) and a relatively lower cost of living compared to the likes of the UAE or Qatar. International studies such as Mercer's Cost of Living Survey have repeatedly placed Kuwait as one of the more affordable GCC nations for expats, particularly when it comes to housing outside prime areas. This favorable balance allows many expats, particularly from India, Egypt, Bangladesh, the Philippines, and Pakistan, to remit substantial portions of their income. For many, Kuwait's restrained entertainment and lifestyle options actually encourage stronger saving discipline. 2. Oman: Affordability Meets Quality of Life Oman consistently ranks as the most cost-effective GCC nation, according to recent indices like Numbeo's 2025 World Cost of Living Index. While salaries may be lower than in Qatar or the UAE, the drastically reduced living expenses, especially for rent and daily necessities, mean expats can still save significantly, especially if they avoid lifestyle inflation. Additionally, Oman is praised for offering a high quality of life, safety, and a calmer environment—factors that also contribute to a more budget-conscious lifestyle. 3. Bahrain: Balanced and Budget-Friendly Though often overshadowed by its larger neighbors, Bahrain punches above its weight with a strong financial sector, moderate salaries, and a noticeably lower cost of living. Remittance data reveals consistent growth. In the first nine months of 2024, foreign workers in Bahrain remitted a total of BD 726.9 million, marking a 1.1% decrease compared to the same period in 2023. This dip occurred despite a growing expatriate workforce, which surpassed 631,000 by mid-2024. Factors such as global economic uncertainties and rising living costs may have influenced this trend, according to Gulf Press. For expats working in finance or industry and living frugally, Bahrain presents a compelling savings environment. Bahrain's remittance landscape in 2024 presents a nuanced picture. While overall remittance outflows experienced a slight decline, the nation's financial sector remains robust, offering expatriates a conducive environment for savings. Countries with High Salaries, But Hidden Pitfalls UAE and Qatar regularly rank among the top for gross salaries. Dubai and Doha attract professionals in finance, tech, and real estate with lucrative packages. However, high living costs—especially in housing, schooling, and entertainment—often neutralize those advantages. Without disciplined budgeting, many expats find their high earnings quickly consumed. Saudi Arabia, once a haven for savings, is undergoing rapid transformation under Vision 2030. While opportunities and salaries have increased, especially in construction, engineering, and management, the cost of living in Riyadh and Jeddah is climbing just as fast. Reports even suggest that in some cases, rents and school fees now rival or surpass those in Dubai. The Role of Nationality and Sector Expat income and savings potential vary widely depending on profession and nationality. Western expats in senior roles often earn significantly more than their South Asian or Arab counterparts in similar positions. Fields like oil & gas, healthcare, and IT offer the highest disposable income across all GCC countries. The GCC's Best Bet for Savers If maximizing savings is the goal, Kuwait, Oman, and Bahrain emerge as the most favorable destinations for expats. These countries strike the right balance between competitive salaries and manageable living costs. The UAE, Qatar, and Saudi Arabia continue to offer unmatched opportunities for career advancement and high incomes, but expats must navigate rising expenses carefully. At the end of the day, savings in the GCC aren't just about how much you earn—it's about how much you keep.
Arab News
15-02-2025
- Business
- Arab News
Saudi expat remittances surge to three-year high $38.5bn, SAMA reveals
RIYADH: Expatriate remittances from Saudi Arabia surged to SR144.2 billion ($38.45 billion) in 2024, a 14 percent increase over the preceding year, according to recent data. Figures from the Saudi Central Bank, also known as SAMA, revealed that this figure is the highest in three years. In December alone, non-Saudi transfers totaled SR14.02 billion, a 31.7 percent increase on the same month last year. Remittances sent abroad by Saudi citizens reached a two-year high in 2024, totaling SR68.61 billion — a 10.74 percent increase compared with 2023, according to SAMA data. In December, these transfers surged to their highest monthly value in more than seven years, reaching SR7.66 billion. Thamer Al-Harbi, an expert on remittances, told Arab News that this significant surge can be largely attributed to the robust growth of the Saudi economy, driven by Vision 2030 projects. He flagged up the 'high demands to get (laborers) from different levels and skills and from many parts in the world,' adding that the statistics underline an increase in non-Saudi workers. As these projects continue to expand, they require skilled and unskilled workers from all over the world, leading to a significant increase in the foreign workforce. He also explained that expatriates sending money 'to their loved ones' during the holiday season largely drove the 31.7 percent annual surge in December. Reflecting on how economic and regulatory trends in Saudi Arabia and the recipient countries affect remittance fluctuations, he said: 'It is playing a role. For example, the stability of their currency will reflect on remittance through banking channels as they trust the currency and they get a good rate.' The expert said that the top destinations for remittances from Saudi Arabia align closely with the largest expatriate communities in the Kingdom. Remittances sent abroad by Saudi citizens reached a two-year high in 2024, totaling SR68.61 billion — a 10.74 percent increase compared with 2023, according to SAMA data. Citing data from the General Authority for Statistics, he noted that the five largest expatriate groups in Saudi Arabia are from Bangladesh, India, Pakistan, Egypt, and the Philippines. These same countries are among the primary recipients of remittances, particularly for person-to-person transfers. The strong presence of these communities, coupled with family obligations and economic ties, continues to drive significant money flows to these destinations. 'The fintech post-COVID played a role in easing the customer experience, speeding up the movement of money to global bank accounts, and saving time by allowing senders to use the service at home without visiting centers or waiting in long queues,' Al-Harbi added. 'Today, most of the apps even provide the service in different languages, which gives customers the confidence to do this by themselves,' he said. To explain the surge in transfers by Saudis, Al-Harbi said that the Kingdom's citizens usually transfer to relatives abroad in Europe or the US to pay for tuition and bills related to their properties. Advances in blockchain technology and compliance solutions driven by artificial intelligence are enhancing the efficiency and security of cross-border transactions, according to a report by IBS Intelligence released in July. These innovations are crucial for improving financial inclusion and supporting the growth of the digital economy in the Middle East. Several fintech companies are driving this transformation, particularly in the realm of cross-border payments. These include Careem Pay, a digital wallet service from the popular ride-hailing app, which facilitates peer-to-peer and bill payments, and international money transfers. Other companies operating in this space are Mamo, a Dubai-based financial services company; PayMe, a fintech based in Egypt; and Saudi company urpay. Al-Harbi said that, in general, the Kingdom offers lower transfer fees compared ith other GCC countries and regions such as Southeast Asia and Africa, particularly for major remittance corridors. This can be attributed to the high volume of transactions and the presence of numerous remittance service providers, which create a competitive market and help keep costs relatively low for expatriates sending money abroad. Al-Harbi said that economic and regulatory trends in Saudi Arabia and recipient countries play a crucial role in shaping remittance flows. One key factor is currency stability. When a local currency is stable, expatriates are more likely to send money through official banking channels, because they trust that their funds will retain value and that they will receive favorable exchange rates. Additionally, regulatory policies in Saudi Arabia and recipient nations influence remittance trends. Policies that allow smooth and secure money transfers encourage more transactions through formal channels, while stricter regulations or economic instability in recipient countries may push some expatriates to seek alternative methods.
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.
