Foreign remittances from Saudi Arabia recorded a significant increase of 14 per cent on an annual basis during the year 2024, reaching $38.4 billion (SAR 144 billion).
This marked the highest level since 2022, according to the monthly statistical bulletin issued by the Saudi Central Bank (SAMA).
The increase was reportedly mainly due to the growth in employment rates and the improvement of wages in some sectors.
According to economic analyst Rawan bint Rabian, the rise in expat remittances was on account of strong economic growth, in addition to increased employment.
The expansion in implementing Vision 2030 projects led to a surge in demand for foreign labour, 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 per cent on an annual basis, which was directly reflected in the volume of remittances,” she said.
The rise in average salaries in some sectors also contributed to the increased remittances last year.
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.
The rise in expat remittances, however, could impact the Saudi economy, with analysts pointing out that the increased outward cash flows may affect the balance of payments, besides having a limited impact on local liquidity.
Outward remittances represent 5.25 per cent of total deposits in Saudi banks, according to the SAMA report for November 2024.
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