Saudi Arabia witnesses 14 percent increase in remittances, driven by expatriate

(MENAFN) In April, Saudi Arabia observed a notable 14 percent annual increase in remittances by expatriates, totaling an impressive SR11.35 billion (USD3.03 billion), as revealed by the latest data. Concurrently, payments from Saudis, constituting 30 percent of total personal transfers, surged by 30 percent during the same period, reaching SR4.94 billion, according to the Saudi Central Bank, commonly known as SAMA.

This uptick in remittances can be attributed to various factors, including the launch of new development projects, which have bolstered employment rates and improved economic conditions, resulting in greater disposable income among both expatriates and Saudi nationals. Additionally, the digitalization of transfer platforms has facilitated seamless cross-border transactions, contributing to the overall increase in remittance flows.

Furthermore, regulatory reforms, such as the digitization of employment contracts, virtual court hearings, and online government services, have modernized legal governance and enforcement practices in the Kingdom. These initiatives align with broader efforts aimed at positioning Saudi Arabia as a leader in the ease of doing business, fostering a conducive environment for economic growth and development.

It's worth noting that remittances play a crucial role in the global economy, serving as cross-border payments to support families or friends, particularly for migrant workers sending money back to their communities of origin. In the context of Saudi Arabia, the remittance market is undergoing a significant transformation, driven by the emergence of digital payment companies and fintech startups, further enhancing the efficiency and accessibility of financial services in the Kingdom.



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