Data from the Saudi Central Bank and Al Eqtisadia’s reports reveal a downward trajectory in remittance flows, underscoring economic shifts within the kingdom.
While 2022 saw remittances standing at SR143.2 billion against SR153.5 billion in the preceding year, the latest figures reflect a continuous decline attributed to various factors, including increased local spending and the burgeoning entertainment and leisure sectors within Saudi Arabia. Expats’ rising living costs and improved quality of life indicators contribute to reduced remittance outflows.
Despite the remittance slump, the expatriate population in Saudi Arabia surged by 19.8 per cent, particularly in the private sector, excluding domestic labour, reaching a peak of 8.7 million by the end of 2023. This demographic shift underscores the kingdom’s reliance on foreign labour to drive its economy despite ongoing efforts to prioritize employment for Saudi citizens through initiatives like “Saudisation.”
Recent census data released by the Saudi General Authority for Statistics highlights the substantial presence of foreign nationals within the kingdom’s population, with foreigners comprising around 41.5 per cent of the total population of 32.2 million. Asian nationals dominate the expatriate community, with Bangladeshis, Indians, and Pakistanis leading the demographic charts.
Bangladeshi nationals top the list with 2.1 million residents, followed closely by Indians and Pakistanis with 1.88 million and 1.81 million, respectively. Yemenis and Egyptians rank among the top expat nationalities, reflecting the diverse tapestry of foreign workers contributing to Saudi Arabia’s economic landscape.
