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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

SAMA Licenses Two Companies to Provide Open Banking Services

SAMA Licenses Two Companies to Provide Open Banking Services
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SAMA Licenses Two Companies to Provide Open Banking Services

SAMA Licenses Two Companies to Provide Open Banking Services

The Saudi Central Bank (SAMA) announced the licensing of “Altknwlwjya aljadydh llhulul albrmjyh” and “lyn tknwlwjyz Company Saudi Arabia litqniyat nuzum almaelumat” to conduct payment services by providing account information—one of the services associated with open banking.

The licenses were granted following the successful completion of the regulatory sandbox phase under SAMA’s supervision.

The decision reflects SAMA’s ongoing efforts to support and enable the financial sector, enhance the efficiency and flexibility of financial transactions, and promote innovation in financial services. This aims to advancing financial inclusion and expanding access to financial services across all segments of society.

SAMA emphasizes the importance of dealing exclusively with authorized financial institutions. To view licensed and permitted financial institutions, visit SAMA's official website.

Business

UK Suffers OECD's Biggest Growth Downgrade as Iran War Pushes Up Energy Costs

This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
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UK Suffers OECD's Biggest Growth Downgrade as Iran War Pushes Up Energy Costs

This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)

Britain's economic ‌growth prospects this year received the sharpest downgrade of any major economy in the OECD's interim forecast update on Thursday following the US-Israeli war ​on Iran, while inflation is set to rise faster too.

The Paris-based international body cut its 2026 forecast for British economic growth by half a percentage point to 0.7%, compared with a 0.4 percentage point downgrade for the euro zone and a 0.3 percentage point upgrade for the United States.

"Planned fiscal tightening and higher energy prices ‌are anticipated to keep ‌growth subdued in the United ​Kingdom, ‌though the ⁠impact ​will be ⁠attenuated by lower policy rates next year," Reuters quoted the OECD as saying in its report.

Following are further highlights from the report and other context:

Britain's growth forecast for 2027 is unchanged at 1.3%.

Britain's inflation forecast for 2026 is revised up by 1.5 percentage points from December to 4.0%, the ⁠biggest upward revision of any large, advanced ‌economy.

UK inflation in 2027 ‌is forecast to be 2.6%, 0.5 percentage ​points higher than in ‌December and above the Bank of England's 2% target.

Poorer UK households spend more on gas and electricity than in other rich countries, though total energy spending makes up a smaller share of UK inflation than elsewhere.

The OECD expects the ‌BoE to keep interest rates unchanged this year then cut in Q1 2027 as inflation ⁠eases.

⁠Britain's Office for Budget Responsibility, in forecasts finalized just before the start of the conflict, predicted GDP growth of 1.1% this year and 1.6% in 2027.

The BoE this month forecast inflation would rise to 3.0-3.5% over the next couple of quarters.

Prime Minister Keir Starmer has made boosting growth and reducing the cost of living top goals for his government.

Finance minister Rachel Reeves said the forecasts showed the war in the Middle East ​was affecting Britain but ​she would still focus on "regional growth, embracing AI and innovation, and establishing a closer relationship with the EU."

Business

Gold Drops More than 1% as Markets Assess Mideast Ceasefire Prospects

FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
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Gold Drops More than 1% as Markets Assess Mideast Ceasefire Prospects

FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa

Gold prices fell on Thursday, weighed down by increased expectations of US Federal Reserve rate hikes this year as elevated oil prices stoked inflation worries, with investors awaiting clarity on Middle East de-escalation efforts.

Spot gold fell 1.2% to $4,451.47 per ounce by 0811 GMT. US gold futures for April delivery lost 2.3% to $4,448.

"You're ‌seeing an ‌acceleration of the idea that... this war will ‌mean ⁠inflation and inflation ⁠will mean a response from central banks, which will mean higher interest rates," said Ilya Spivak, head of global macro at Tastylive.

Brent crude futures climbed back above $100 a barrel on concerns that protracted fighting in the Middle East will further disrupt energy flows.

Higher crude prices tend to fuel inflation, and while rising inflation typically boosts gold's appeal ⁠as a hedge, high interest rates weigh on ‌demand for the non-yielding asset.

Markets see ‌a 37% chance of a US rate hike by December this year ‌with almost no chance of a cut now, according to ‌CME Group's FedWatch Tool. Before the conflict, markets were expecting at least two rate cuts.

US President Donald Trump said Iran was desperate to make a deal to end nearly four weeks of fighting, contradicting the Iranian foreign ‌minister who said his country was reviewing a US proposal but had no intention of holding talks ⁠to wind down ⁠the conflict.

"In the next 24 to 48 hours, (gold prices) will just be about reacting to headlines about negotiations," said Kyle Rodda, a senior financial market analyst at Capital.com.

"The really big moves will happen probably at the start of next week when it becomes clearer whether the US launches a ground invasion in Iran over the weekend."

Trump has vowed to hit Iran harder if Tehran fails to accept that the country has been "defeated militarily", White House press secretary Karoline Leavitt said on Wednesday.

Spot silver fell 2.7% to $69.36 per ounce. Spot platinum was down 2.3% at $1,874.90, while palladium dropped 2.5% to $1,387.53.