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Foreign Remittances from Saudi Arabia Reach Highest Level Since 2022

Wage improvements in certain sectors contributed to higher disposable incomes (Photo: Reuters)
Wage improvements in certain sectors contributed to higher disposable incomes (Photo: Reuters)
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Foreign Remittances from Saudi Arabia Reach Highest Level Since 2022

Wage improvements in certain sectors contributed to higher disposable incomes (Photo: Reuters)
Wage improvements in certain sectors contributed to higher disposable incomes (Photo: Reuters)

Foreign remittances from Saudi Arabia saw a notable increase of 14% in 2024 compared to the previous year, reaching SAR144 billion ($38.4 billion), the highest level since 2022, according to data from the Saudi Central Bank (SAMA). Experts attribute this surge to rising employment rates and wage improvements in certain sectors.

In 2023, total remittances stood at SAR 126.8 billion ($33.8 billion), while in 2022, they reached SAR 143 billion ($38 billion), according to SAMA’s monthly statistical bulletin.

Economic analyst Rawan bin Rubayan linked the rise in remittances to strong economic growth and increased employment opportunities, fueled by Saudi Arabia’s ambitious Vision 2030 projects. The expansion of construction and service sectors has particularly driven the demand for foreign labor.

She highlighted in remarks to Asharq Al-Awsat that the number of non-Saudi workers in the private sector rose to 8.9 million in 2024, a 3.5% increase year-on-year, directly impacting remittance volumes.

Additionally, wage improvements in certain sectors contributed to higher disposable incomes. In 2024, the average monthly salary for foreign workers in construction and services rose to SAR4,200 ($1,119), up from SAR3,850 ($1,026) in 2023. The stable exchange rate of the Saudi riyal at SAR3.75 per US dollar also supported remittance growth.

Another contributing factor was the rising cost of living in Saudi Arabia. The Consumer Price Index (CPI) increased by 2.5% in 2024, pushing many expatriates to send a larger portion of their earnings back home. Rent and essential service prices also saw an upward trend.

According to Mohammed Al-Farraj, Senior Asset Management Executive at Arbah Capital, multiple factors drove the remittance surge, including a growing expatriate workforce, economic recovery in expatriates’ home countries, stable exchange rates, and advancements in financial services that facilitate money transfers.

Speaking to Asharq Al-Awsat, Al-Farraj explained that while rising remittances increase outbound cash flows, potentially impacting Saudi Arabia’s balance of payments, the effect on domestic liquidity remains limited. According to SAMA’s November 2024 report, remittances accounted for 5.25% of total bank deposits in Saudi Arabia.

However, predicting whether this trend will continue remains uncertain. Al-Farraj noted that factors such as changes in Saudi labor market policies, global economic conditions, and the evolution of digital banking technologies will determine the trajectory of remittances in the coming years.

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Business

French Economy Likely to Grow at Least 0.8% in 2025, Finance Minister Says

French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)
French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)
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French Economy Likely to Grow at Least 0.8% in 2025, Finance Minister Says

French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)
French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)

Unless there is a sharp reversal in the final three months of the year, the French economy is likely to grow by at least 0.8% in 2025, outpacing the 0.7% that the government had anticipated, Finance Minister Roland Lescure said on Sunday.

"We will most likely exceed the government's growth forecast for this year. We had predicted 0.7%, but I think we will have at least 0.8%. That's good news," Lescure told LCI television.

"So we would really need to have a bad fourth quarter, which I don't believe will happen, for us to be below 0.8%, so 0.8% is within reach," he added.

France's economy grew 0.5% in the third quarter, final data from statistics office INSEE showed in November, reflecting resilience in the euro zone's second-largest economy.

Business

Saudi Real Estate Shifts from Temporary Upswing to Operational Maturity

Real estate projects in Riyadh (SPA) 
Real estate projects in Riyadh (SPA) 
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Saudi Real Estate Shifts from Temporary Upswing to Operational Maturity

Real estate projects in Riyadh (SPA) 
Real estate projects in Riyadh (SPA) 

Saudi Arabia’s listed real estate sector recorded an exceptional and unprecedented transformation in the third quarter of 2025, with profits surging more than sixfold. Total earnings jumped 633.6 percent to $496 million (SAR 1.86 billion), compared with $67.5 million a year earlier, an indication that the industry has entered a phase of sustained operational maturity rather than a short-term cyclical rebound.

The sharp rise reflects the companies’ success in restructuring their product portfolios, enhancing cash flows, and shifting from “paper growth” to revenue-driven expansion supported by project deliveries and operational income.

Sector analysts attributed the leap in profitability to the rollout of major real estate projects in large cities, higher project quality, improved financing conditions, and stronger liquidity.

They noted that the leap aligns with the rapid expansion of Saudi Arabia’s non-oil economy, which now contributes about 56 percent of GDP. This has strengthened demand across residential, commercial, industrial, and office real estate, supporting profit growth alongside recent regulatory reforms.

During the first nine months of 2025, listed real estate firms achieved combined profits of $1.44 billion (SAR 5.4 billion), led by Cenomi Centers, Jabal Omar, and Masar (Umm Al-Qura for Development and Construction) - a 244 percent increase from the same period in 2024.

Financial disclosures show that nine out of sixteen listed developers reported higher profits in Q3, while four companies returned to profitability. Masar topped the sector in Q3 with SAR 516.6 million in earnings, up 341.9 percent year-on-year. Cenomi Centers ranked second with SAR 499.8 million, a rise of 52.2 percent, followed by Dar Al-Arkan, whose profits climbed 89 percent to SAR 255.6 million.

Real estate specialist Abdullah Al-Mousa told Asharq Al-Awsat that the historic profit surge confirms the sector has “entered a stage of operational maturity,” reflecting companies’ improved efficiency, stronger recurring revenues, and the successful transition to asset-operation models.

He identified three key drivers: higher-quality projects and stronger occupancy across income-generating assets; improved financing conditions amid stabilizing interest rates; and the completion of major projects, particularly in Riyadh and Makkah.

Al-Mousa expects continued positive performance in coming quarters, though at a more moderate pace, supported by new strategic projects entering operation, sustained housing demand, rising commercial activity in Riyadh, and ongoing regulatory reforms that reduce risk and attract institutional investment.

Real estate analyst Salman Saeed said the strength of the non-oil economy has sharply boosted demand in housing, retail, industrial, and office markets. He highlighted reforms such as the expansion of the white-land tax and rental-regulation measures, along with significant government support for homeownership, which has raised the share of Saudi citizens owning homes.

Saeed noted that rising demand for commercial and office space, driven by multinational companies relocating to Riyadh, has lifted occupancy rates and diversified developers’ income streams. Some firms also improved results through land sales and divestment of non-core assets, enhancing operational efficiency.

 

 

Business

Qatar’s Energy Minister: AI Will Secure Future Demand for LNG

Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)
Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)
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Qatar’s Energy Minister: AI Will Secure Future Demand for LNG

Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)
Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)

Statements by Qatar’s Minister of State for Energy Affairs Saad Al-Kaabi became a focal point at the Doha Forum 2025, opened by Emir Sheikh Tamim bin Hamad Al Thani under the theme “Anchoring Justice: From Promises to Tangible Reality.”

Al-Kaabi delivered an upbeat assessment of the gas sector’s future, insisting he has “no concern whatsoever” about long-term demand thanks to the soaring power needs of artificial intelligence data centers.

Al-Kaabi said global demand for natural gas will remain robust as AI-driven energy consumption accelerates, forecasting that liquefied natural gas (LNG) demand will reach 600–700 million tons annually by 2035. He warned, however, that insufficient investment could constrain future LNG and gas supplies.

“I have absolutely no worries about future gas demand,” he said, adding that AI-related power consumption will be a key driver.

Once fully operational, Qatar’s North Field expansion is expected to produce 126 million metric tons of LNG a year by 2027 - an 85 percent increase from today’s 77 million tons.

He also noted that the first train of the Golden Pass LNG project, a joint venture with ExxonMobil in Texas, is scheduled to begin operations in the first quarter of 2026.

Al-Kaabi argued that oil prices between $70 and $80 per barrel would generate sufficient revenue for companies to invest in future energy needs, while prices above $90 would be “too high.”

He separately cautioned that the Gulf region is witnessing an “excess of real-estate construction,” raising the risk of a property bubble.

The minister hoped that the European Union will address corporate concerns over new sustainability regulations by the end of December.

Gulf Cooperation Council states voiced deep concern on Friday about two proposed EU directives, which tackle corporate sustainability due diligence and sustainability reporting, recently amended by the European Parliament for trilogue negotiations.

The GCC warned that the measures would effectively compel major European and international companies to adopt the EU’s sustainability model, comply with additional human rights and environmental obligations, submit climate-transition plans beyond existing global accords, file detailed sustainability reports, and face penalties for non-compliance.

Qatar has also criticized the due-diligence directive and has threatened to halt gas supplies. The dispute centers on potential fines of up to 5 percent of a company’s global revenue.

Al-Kaabi has repeatedly stated that Qatar will not meet net-zero emissions targets under such conditions.