11 Jul 2024
RIYADH: Remittances by expatriates living in Saudi Arabia saw an annual rise of 12 percent in May to SR12.6 billion ($3.4 billion), marking the highest level in nearly two years.
The latest bulletin from the Saudi Central Bank, also known as SAMA, further revealed that remittances sent abroad by the Kingdom’s nationals also increased by 6 percent during this period, totaling SR6.18 billion, the highest since November 2022.
This amount also marks a 25 percent increase compared to April.
The recovery of the post-pandemic job market, along with the Kingdom’s high salaries, successful government strategies to attract and retain expatriates, and low transfer costs, are pivotal factors driving this upward trend.
Improvements in financial technology and mobile banking solutions, which make sending money abroad easier and more convenient, are also seen as contributing to the increased remittance activities.
For Saudis, other factors include increased financial obligations such as debt repayments, educational fees, or healthcare costs for family members abroad.
Additionally, the Kingdom’s nationals involved in international commerce may boost remittance outflows for business-related expenses, investments, or partnerships.
Expatriate salaries in Saudi Arabia are among the highest in the Middle East, with an average executive earning over $100,000 per year, setting a global benchmark, according to expat.com, a portal providing information and advice to expats.
The Kingdom’s strategy to attract and retain foreign workers has shown success, evidenced by recent data from the Saudi General Organization for Social Insurance.
The number of non-Saudis covered by the Kingdom’s social insurance scheme has notably increased, reflecting the government’s successful efforts in this area.
Additionally, several multinational corporations have relocated their regional headquarters to Saudi Arabia, further boosting the country’s economic landscape.
Crown Prince Mohammed bin Salman aims to elevate Riyadh into one of the world’s top 10 economic hubs by 2030, as part of the broader Vision 2030 initiative to diversify the economy and enhance its global standing.