Riyadh Expats Send Record-High Remittances in May
Expatriates living in Saudi Arabia sent a record-high of SR12.6 billion ($3.4 billion) in remittances in May, marking a 12 percent annual increase and the highest level in nearly two years, according to the Saudi Central Bank (SAMA).
Factors Driving the Upward Trend
The surge in remittance activities can be attributed to the recovery of the post-pandemic job market, high salaries in the Kingdom, successful government strategies to attract and retain expatriates, and low transfer costs. Additionally, advancements in financial technology and mobile banking solutions have made sending money abroad easier and more convenient.
Financial Obligations and Business-Related Expenses
Saudis are increasingly sending money abroad to fulfill financial obligations such as debt repayments, educational fees, and healthcare costs for family members. Moreover, nationals engaged in international commerce may boost remittance outflows for business-related expenses, investments, or partnerships.
Saudi Arabia’s Economic Landscape
The Kingdom’s efforts to attract and retain foreign workers have been successful, with multinational corporations relocating their regional headquarters to Saudi Arabia. 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 Vision 2030 initiative.
Global Perspectives on Remittance Flows
According to the World Bank’s Migration and Development Brief, remittance flows are influenced by various factors in both source and recipient countries. Saudi Arabia led in outward remittances as a percentage of GDP last year, with the US being the largest source of transfers globally. Saudi Arabia and South Korea have the lowest transfer costs among G20 countries for remittances.
Remittance Trends in Different Regions
In the Middle East and North Africa region, Egypt received $19.5 billion in remittances in 2023, followed by Morocco and Lebanon. In South Asia, India topped remittance receipts, with Pakistan and Bangladesh following suit. Countries like the UAE, Saudi Arabia, Kuwait, Oman, and Qatar collectively account for a significant portion of India’s total remittances.