Expatriate remittances from Saudi Arabia hit $3.2 billion in June, marking an 11.32% annual increase, according to the Saudi Central Bank (SAMA). This figure underscores Saudi Arabia’s significant role in global remittance flows.
The SAMA bulletin revealed a 1% annual decrease in remittances sent abroad by Saudi nationals, totaling SAR 5.12 billion. This follows a peak in May, the highest value recorded in a year and a half.
Attraction for Expatriates
Saudi Arabia continues to attract expatriates due to its robust economic growth and high salary levels. The average executive salary exceeds $100,000 annually, making it one of the highest in the Middle East.
Several factors contribute to the increase in remittances. The job market’s recovery from the COVID-19 pandemic has boosted employment and earnings for expatriates. Additionally, Saudi Arabia’s strategies to attract and retain foreign workers, including favorable policies, have further increased the expatriate workforce.
Impact of Technology
Technological advancements have facilitated this growth. Innovations in financial technology and mobile banking have made transferring money faster, more secure, and less expensive. Digital payment systems and mobile apps have made it easier for expatriates to send funds.
Non-Saudis make up 41.6% of the Kingdom’s population, approximately 13.4 million people. This diverse community includes individuals from Bangladesh, India, Pakistan, Yemen, Egypt, Sudan, the Philippines, Syria, Nepal, and Jordan. The high net migration rate, averaging 79 individuals per day, highlights the Kingdom’s economic appeal.
Saudi Arabia’s Role in Global Remittances
Saudi Arabia and the UAE are key players in the global remittance market. In 2022, their combined remittance outflows totaled about $79 billion, with Saudi Arabia contributing $39.3 billion. This underscores Saudi Arabia’s significant impact on remittance-receiving countries’ economies.
Key Recipient Countries
Pakistan and Bangladesh are major recipients of Saudi remittances. In Pakistan, Saudi Arabia is the largest source of remittance inflows, contributing 50% from July 2022 to March 2023. In Bangladesh, remittances improve living standards and support economic stability.
Despite economic uncertainties, the global remittance market has shown resilience. During the pandemic, remittances remained stable, with only a minor decline in India, the top recipient. The market rebounded, reflecting its critical role in supporting economies worldwide.
The increase in expatriate remittances from Saudi Arabia highlights the Kingdom’s key role in the global remittance landscape. High salaries, favorable employment conditions, technological advancements, and a large expatriate population drive this robust flow of funds, supporting economies and households globally.
