Declining Trend: Expatriate Remittances in Saudi Arabia Witness 10.41% Drop, Hitting Lowest Average in Five Years

Riyadh, Saudi Arabia - The remittance of expatriates in Saudi Arabia witnessed a significant decline, falling by 10.41% to SR9.33 billion in February compared to SR10.41 billion in the previous month. This drop reflects a month-on-month decline of SR1.08 billion, marking the lowest average monthly level in the past five years. These figures were unveiled based on statistical data released by competent authorities.

The downward trajectory in remittances can be observed in the average monthly levels recorded in January and February as well. The average remittances for these two months reached approximately SR9.87 billion, hitting the lowest average level seen in at least five years. For comparison, the average monthly remittances of expatriates in 2019 amounted to approximately SR10.46 billion, followed by steady increases over the next two years.

In 2020, the monthly average of foreign remittance rose to SR12.47 billion, further increasing to SR12.82 billion in 2021. However, a decline began to manifest in 2022, resulting in an average monthly remittance value of SR11.94 billion. The year 2023 witnessed a further decline, with the average value of foreign remittance dropping to SR10.41 billion. These figures emphasize the ongoing downward trend in expatriate remittances over the past year.

Simultaneously, the Saudi Central Bank (SAMA) revealed that the bank's net foreign assets experienced a decline of $7.20 billion in February compared to the previous month. Net foreign assets dropped to SR1.545 trillion ($411.96 billion) from SR1.572 trillion ($419.1 billion) in January, experiencing a 4.9% year-on-year decrease in February.

The declining trend in expatriate remittances and the reduction in net foreign assets reflect the current economic landscape, potentially influenced by various factors such as global economic conditions, changes in labor markets, and national and international monetary policies. Monitoring these indicators provides valuable insights into the shifting dynamics of the economy and serves as a basis for strategic decision-making.

As the situation continues to unfold, monitoring and evaluating these trends will be essential for policymakers, financial institutions, and relevant stakeholders in effectively navigating the economic landscape and implementing measures to stimulate growth and stability in the Kingdom.