Foreign Remittances from Saudi Arabia Reach Highest Level Since 2022https://english.aawsat.com/business/5109640-foreign-remittances-saudi-arabia-reach-highest-level-2022
Foreign Remittances from Saudi Arabia Reach Highest Level Since 2022
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.
South Korean Chips Head to Saudi Arabia: From Manufacturing to Computinghttps://english.aawsat.com/business/5315282-south-korean-chips-head-saudi-arabia-manufacturing-computing
South Korean Chips Head to Saudi Arabia: From Manufacturing to Computing
An AI chip with the South Korean flag (Reuters
Chips are no longer merely electronic components hidden inside devices. They have become the foundation of the artificial intelligence economy, as global competition shifts from developing models to having the capacity to run them efficiently and at scale.
As demand for computing chips rises, the semiconductor industry is converging with energy, data centers, and digital infrastructure, creating a new map of technological power that extends beyond countries that manufacture chips to countries capable of hosting and operating the computing power they require.
In this race, Saudi Arabia is emerging as a growing destination for Asian chip and AI companies, driven by the availability of energy, the rapid expansion of data centers, and its ambition to build a sovereign AI ecosystem. South Korea, meanwhile, is moving to strengthen its position at the heart of the value chain by increasing government spending on chips, AI, and the infrastructure that supports both.
The decision by South Korean AI chipmaker Rebellions to establish its regional headquarters in Riyadh embodies this new intersection between those who make chips and those who have the capacity to run them. Its CEO, Sunghyun Park, told Asharq Al-Awsat that three main factors make Saudi Arabia an attractive destination for the company: high levels of energy availability, a commitment to developing AI infrastructure, and strong ambitions in sovereign AI.
Park added that the combination of these factors makes Riyadh a suitable location for Rebellions to expand its AI chip business.
The Korean company's move comes as Saudi Arabia works to expand its ability to accommodate growing demand for computing, alongside rising investment in data centers and AI projects.
Sunghyun Park, CEO of South Korean AI chipmaker Rebellions (Asharq Al-Awsat)
821 Trillion Won in Spending in 2027
South Korea proposed this week the largest government budget in its history, worth 821 trillion won ($596.92 billion) for 2027, an increase of 12.8 percent from the current year and the largest annual increase ever. A significant portion of the spending will be directed toward AI, semiconductors, and related infrastructure.
Seoul is betting on increased public spending to maintain its position in the semiconductor industry, one of the most important drivers of its economy, as global demand rises for chips used in AI applications.
The proposed budget includes 21.3 trillion won for industrial water systems, electricity grids, and logistics services needed to support the next generation of semiconductor infrastructure, along with 2.6 trillion won in a dedicated semiconductor budget.
South Korea is benefiting from the global surge in demand for high-bandwidth memory (HBM), which is used in AI systems, with Samsung Electronics and SK Hynix reporting strong profits driven by this demand.
"Sovereign AI" Connects Riyadh and Seoul
Park believes that the sovereign dimension of AI has become an important factor in countries' decisions about the technologies they use, particularly as some data and applications are tied to sensitive sectors. He said the need for AI technologies that can be managed locally is linked, among other things, to "national security," noting that sensitive information, such as nuclear energy or weapons programs, requires governments to control how AI is used, set its boundaries, and operate it entirely within the country.
This reflects one of the major trends in the AI market. Governments and companies are no longer focused solely on gaining access to advanced models. They are also concerned with where data is stored, where models are run, and who owns the infrastructure on which they depend.
Aramco and HUMAIN in the Chip Supply Chain
Rebellions already has an investment connection to Saudi Arabia. Park said Aramco invested in the company about two years ago, while Rebellions is in ongoing discussions with HUMAIN about strengthening supply chains for AI infrastructure technologies.
He said HUMAIN has become one of the most important organizations operating in AI in Saudi Arabia and globally, and that cooperation with the company could have a positive impact on the region's AI sector.
These moves come as Saudi Arabia continues to expand its digital infrastructure, including data centers. This provides companies specializing in chips and computing with a potential regional market that goes beyond simply selling components to participating in the construction of the AI ecosystem itself.
Competition Is Shifting From Chip Speed to Operating Cost
Rebellions does not believe that competition in the AI chip market will be decided solely by a chip's ability to process more tokens per second. Instead, it will increasingly come down to the long-term cost of running AI.
Park said the company is focused on developing technologies that deliver "higher AI performance at a lower economic cost," explaining that an important metric for customers is not simply the number of tokens that can be processed per second, but also "cost per token."
The company's model focuses heavily on inference rather than distributing its efforts equally between inference and model training.
Park explained that inference is gradually becoming commoditized, meaning companies and users will increasingly care about obtaining good results at a reasonable cost, regardless of the specific technology used behind the scenes.
Energy Becomes Part of the AI Equation
This factor is becoming particularly important as energy consumption associated with data centers rises. The cost of electricity and chip efficiency have become part of the economic calculation involved in expanding AI use.
This is where the calculations of Riyadh and Seoul meet from two different angles. South Korea is investing in chips, electricity grids, and the industrial infrastructure needed to maintain its position in the value chain. Saudi Arabia, meanwhile, is building the energy supply, infrastructure, and data centers needed to absorb the next wave of computing.
The AI race between countries, therefore, is no longer only about models and software. It is about who makes the chips, who owns the data centers, who can provide the energy, and who can deliver all of it at the lowest possible cost.
Iraq Raises Oil Export Capacity to More Than 3 Million Barrels Per Dayhttps://english.aawsat.com/business/5315242-iraq-raises-oil-export-capacity-more-3-million-barrels-day
Iraq Raises Oil Export Capacity to More Than 3 Million Barrels Per Day
FILE PHOTO: The Zubair Oil Field in Basra, Iraq, April 6, 2026. REUTERS/Mohammed Aty/File Photo
Iraq has raised its oil export capacity to more than 3 million barrels per day, Iraq's oil minister said, according to state media on Saturday.
Iraq has been able to export 3 million bpd since the beginning of September, state media said.
Oil Minister Basim Mohammed said the government plans to increase capacity to 5 million bpd after the completion of strategic pipelines and export outlets through the Strait of Hormuz, according to state media.
Iraq's oil exports rose to around 2.34 million bpd in August, according to officials.
Industry sources and shipping data had indicated that September shipments were set to climb, as big profits and Iranian approval for its tankers to pass through the Strait of Hormuz have encouraged buyers.
China to Pump $47 Bln Into State Banks, Insurers in Capital-boosting Pushhttps://english.aawsat.com/business/5315238-china-pump-47-bln-state-banks-insurers-capital-boosting-push
China to Pump $47 Bln Into State Banks, Insurers in Capital-boosting Push
Construction cranes rise above a newly built residential district before sunrise, in Beijing, China, September 3, 2026. REUTERS/Maxim Shemetov
China's finance ministry will inject 57 billion yuan ($8 billion) into three state-owned insurers, the companies said on Sunday, in a coordinated push by Beijing to shore up capital across its financial system.
China Life Insurance (Group) Co, the country's largest life insurer, will receive 35 billion yuan, while China Taiping Insurance Group will get 7 billion yuan, the two groups said in statements, according to Reuters.
People's Insurance Company (Group) of China said it planned to raise up to 15 billion yuan through a private placement of A-shares to the Ministry of Finance, with the proceeds to be used to replenish its capital.
"The injection is an important step by the country to enhance the financial sector's ability to serve the real economy and promote the high-quality development of the financial and insurance industries," China Life said in its statement, adding that it would strengthen the group's ability to withstand risks.
Taiping said the funds would bolster its solvency and other key indicators.
Separately, Agricultural Bank of China and Industrial and Commercial Bank of China said they planned to raise up to 160 billion yuan and 100 billion yuan respectively through private A-share placements to the finance ministry, China National Tobacco Corp and its subsidiaries.
Both lenders said the proceeds would be used entirely to replenish core tier 1 capital, in a move to help sustain credit expansion as Beijing leans on state banks to support growth.
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