RIYADH: Expatriate remittances from Saudi Arabia reached an impressive SR144.2 billion ($38.45 billion) in 2024. This marked a 14 percent increase compared to the previous year, according to the latest data from the Saudi Central Bank (SAMA). This surge in remittances is the highest seen in the last three years.
The month of December alone saw non-Saudi remittances total SR14.02 billion. This represents a significant 31.7 percent year-on-year increase. Meanwhile, remittances sent by Saudi citizens also saw a notable rise, reaching SR68.61 billion in 2024. This is a 10.74 percent increase from the previous year. December marked the highest monthly remittance value for Saudi citizens in over seven years, with transfers reaching SR7.66 billion.
Thamer Al-Harbi, an expert on remittances, attributed this surge largely to the robust growth of Saudi Arabia’s economy. This growth is driven by Vision 2030 initiatives. He explained that the expanding demand for labor across various sectors has resulted in an influx of workers from many countries. As these projects continue to expand, there is a significant increase in the number of skilled and unskilled expatriates. All contribute to the rise in remittance flows.
“The substantial increase in December can be attributed to the holiday season, as many expatriates sent money home to their families,” Al-Harbi noted. He also highlighted how economic stability, particularly in the recipient countries, can influence remittance patterns. When recipient countries’ currencies remain stable, expatriates are more likely to send money through formal banking channels. This ensures favorable exchange rates and secure transfers.
The largest expatriate communities in Saudi Arabia — including those from Bangladesh, India, Pakistan, Egypt, and the Philippines — are also among the top recipients of these remittances. These countries, with their strong economic ties and familial connections to the workers in Saudi Arabia, continue to see significant financial flows.
FAST FACT: Remittances from Saudi citizens reached SR68.61 billion in 2024. This marks a two-year high and a 10.74 percent increase from 2023.
Al-Harbi also noted the role of fintech advancements in facilitating remittances, particularly in the post-COVID world. The use of digital wallets, mobile apps, and blockchain technology has significantly enhanced the ease and speed of money transfers. This allows expatriates to send funds without the need to visit physical transfer centers. These innovations have also provided greater convenience with multi-language support for users.
Saudi Arabia’s competitive remittance fees, lower than those found in other GCC countries and regions like Southeast Asia and Africa, also contribute to the high volume of transactions. The presence of numerous service providers in the Kingdom fosters a competitive market, keeping fees relatively low.
Al-Harbi concluded that regulatory policies and economic trends in both Saudi Arabia and the recipient countries continue to play an essential role in shaping remittance flows. Stable currencies and supportive regulations are key factors. These ensure more money is sent through official channels, benefiting both the expatriates and the economies of the recipient nations.
