https://arab.news/cg9jy
RIYADH: Expatriate remittances from Saudi Arabia reached SR11.86 billion ($3.16 billion) in August, marking a 10 percent annual increase, according to recent data.
Figures from the Saudi Central Bank, also known as SAMA, also revealed that transfers sent abroad by Saudi nationals rose by 19 percent year on year, totaling SR5.83 billion.
As one of the world’s largest sources of remittances, Saudi Arabia plays a crucial role in shaping the financial well-being of millions of households worldwide.
With nearly 75 percent of the Kingdom’s labor force consisting of foreign workers, Saudi Arabia’s policies and job market conditions significantly influence the flow of remittances, highlighting not just the country’s economic strength but also its deep interconnectedness with the global financial system.
This relationship underscores how labor migration and cross-border financial support have become vital for communities far beyond Saudi borders.
According to the US Department of State, the Kingdom ranks among the largest remittance-sending countries globally, benefiting from an open financial system with no restrictions on converting or transferring funds related to investments, including dividends or earnings.
This regulatory environment enables a seamless flow of money across borders, eliminating delays in sending funds through legal channels.
At the heart of this remittance system is the Wage Protection System, implemented by the Ministry of Human Resources and Social Development. This system ensures that expatriate workers, who are the backbone of the remittance ecosystem, receive their wages as per their contracts.
Employers are required to transfer wages through local Saudi bank accounts, giving expatriates easy access to their earnings for remittance to their home countries.
The transparency provided by this system not only protects workers’ rights but also offers an efficient legal framework for expatriates to support their families abroad.
The rise of digital platforms, independent of traditional banks and exchange houses, has also driven growth in the sector.
With widespread smartphone and Internet access, digital remittances have become more accessible, allowing users to send funds anytime, anywhere. These platforms offer advantages such as competitive exchange rates, lower fees, and faster processing times, enabling near-instant access to funds for recipients.
Financial institutions and fintech companies have further contributed by developing innovative solutions, including mobile apps and digital wallets.
Additionally, supportive regulations from Saudi and regional authorities have created a secure environment for digital services, fostering competition while protecting user interests.