Saudi Arabia Remittance Market is Witnessing Decline in Net Migration Rate – Makreo Research

RIYADH, Saudi Arabia - Jan. 4, 2023 - PRLog -- The Saudi remittances market experienced positive growth in 2021, reaching SR~ billion, an increase from SR48.57 billion in 2020. The growth was attributed to rising oil prices, economic activity, and an increase in money transfers by expats and Saudis to other countries in the GCC and Russia. The remittance market in Saudi Arabia was impacted negatively by the COVID-19 pandemic

Saudi Arabia's remittances have been gradually dropping since 2015 as a result of lower oil prices and the government's preference for hiring Saudi citizens over immigrants. When the global pandemic struck in 2020, Saudi Arabia surpassed the US and the UAE to become the third-largest source of remittances worldwide. However, from past few years, more and more people are seeking to emigrate from Saudi Arabia as a result of the growing emphasis on recruiting Saudi nationals for higher level positions.

On the other hand, the inbound remittance market was hindered by the pandemic and experienced a 10% negative growth rate, but in 2021 the market recovered and expanded at a positive rate of 3%. The recovery of host countries in the European Union (most notably France and Spain), as well as an increase in world oil prices that has helped the GCC countries, have both boosted remittances to the Middle East and the Saudi Arabian region.

Increasing Digitization: In Saudi Remittance Market, digital remittance channels have been more well-liked since the COVID-19 pandemic, and given their growing adoption rate, it is anticipated that they will eventually replace more conventional means.

Migrant Population: 3.9 million migrants deported in Saudi Arabia between 2011 and 2018, average of 500,000 per year. International migrant population including refugees expected to reach 281 million in 2020, with Saudi Arabia accounting for 4.6% or 13 million people. Personal remittances from Saudi Arabian expats increased by 2.79% in 2021, amounting to approximately SR ~ billion.

Spur in Digital Remittances
Following the COVID-19 outbreak, Digital remittance channels have grown in popularity, and given the rising adoption rate, it is expected that digital channels would overtake traditional methods in the future. Expat Population Remittance Transfers are the key to industry growth that has severely impacted in the recent years.

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