Expatriate remittances from Saudi Arabia surged 14% annually in 2024, reaching $38.4 billion (SAR144 billion). This marks the highest outflow since 2022, driven by Vision 2030-driven employment growth and wage improvements. The Saudi Central Bank (SAMA) confirmed the milestone in its latest report.
Vision 2030 Projects Fuel Labor Demand
Economic analyst Rawan bint Rabian linked the rise to booming private-sector hiring, notably in construction and services. Non-Saudi workers in these sectors grew 3.5% to 8.9 million, amplifying remittance volumes. Average monthly wages for expats rose to 1,119 (SAR4,200), up from 1,026 (SAR3,850) in 2023.
Mohammed Al-Faraj of Arbah Capital highlighted four factors: expat workforce expansion, stable exchange rates, better home-country economies, and fintech advancements. Digital platforms streamlined cross-border transfers, while the riyal’s stability against the dollar bolstered remittance efficiency.
Economic Impact and Liquidity Considerations
Increased remittances may pressure Saudi Arabia’s balance of payments, though local liquidity remains stable. Outflows accounted for 5.25% of total bank deposits as of November 2024. Analysts note uncertainties ahead, citing labor market shifts and global economic trends.
While remittances reflect Saudi Arabia’s thriving economy, policymakers monitor their long-term fiscal effects. With Vision 2030 accelerating diversification, expat contributions remain vital to global labor markets and recipient economies.
