May saw a 12 percent yearly increase in remittances from foreign residents of Saudi Arabia to SR12.6 billion ($3.4 billion), the biggest amount in over two years.
Remittances from Saudi citizens overseas rose by 6% during this time, reaching SR6.18 billion—the biggest amount since November 2022—according to the most recent bulletin from the Saudi Central Bank, or SAMA.
In addition, this sum represents a 25% rise from April.
This growing trend is mostly being driven by the post-pandemic job market’s recovery, the Kingdom’s high pay, effective government initiatives to draw and keep foreign workers, and affordable transfer expenses.
Enhancements in financial technology and mobile banking options, which facilitate and simplify international money transfers, are perceived to be a factor in the rise in remittance activity.
Additional financial responsibilities for Saudis include debt repayment, school tuition, and medical expenses for family members living outside.
Furthermore, Kingdom citizens engaged in foreign trade could increase their remittance outflows to fund partnerships, investments, or business-related costs.
According to expat.com, a website that offers information and guidance to expatriates, Saudi Arabia has some of the highest expatriate incomes in the Middle East, with an average executive earning over $100,000 annually, setting a global benchmark.
Recent data from the Saudi General Organization for Social Insurance indicates that the Kingdom’s plan to draw in and keep foreign labor has been successful.
The Kingdom’s social insurance plan now covers a significantly larger number of non-Saudis, a reflection of the government’s effective efforts in this area.
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