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

Saudi remittances market has witnessed positive growth in 2021, totaling SR~ billion, up from SR48.57 billion in 2020. Rising oil prices and the associated improvement in economic activity have created a surge in money transfers by expats to their home countries as well as remittances by Saudis to other nations in the Gulf Cooperation Council and Russia. Remittance in Saudi Arabia witnessed positive growth during Pre-COVID period however after during health emergency this sector was most affected. It is imperative to understand Average remittance Transaction Size therefore Makreo research has studied the market in terms of inward and outward remittances. According to world bank remittance report 2021, remittances to Saudi Arabia slowed owing to moderate growth in high income economies and drop in migration to GCC countries.

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Saudi Arabia is one of the most economically developed nations, which is making the country a popular place for people to emigrate from several South Asian nations. More than 37% of the country's 33 million residents are foreigners, with India, Pakistan, Nepal, the Philippines, Bangladesh, Sri Lanka, and Egypt serving as major source countries. As a result, the industry receives a significant number of outbound remittances from expats who frequently send money home.

Saudi Arabia holds a prominent position among G20 countries, Saudi Arabia continues to be main source of remittances for nation like Yemen. Moreover, the outbreak of Covid-19 has been a turning point for the remittance market in the Saudi Arabia.

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. The size of the remittance industry by value decreased as a result. but, after COVID, the situation has changed because people are more likely to save money.

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. Additionally, the fact that the majority of remittances in Saudi Arabia are made by blue-collar workers who are often not tech-savvy presents one of the biggest challenges for banks and other players trying to go digital. Therefore, the industry has to be taught on how to use the technology and the advantages that come with it in order to get into this market.

► Migrant Population: Between March 2011 and August 2018, approximately 3.9 million migrants were deported in Saudi Arabia, a pace of over 500,000 per year on average. In 2020, the number of international migrants including refugees is expected to reach 281 million. Saudi Arabia accounted for 4.6% of the global migrant population, or 13 million people. Personal remittances from Saudi Arabian expats increased by 2.79% in 2021, amounting to roughly 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.

Makreo Research has published a study on Saudi Arabia Remittance market report titled, "Saudi Arabia Remittance Market Future Outlook to 2027" is a detailed study that offers the reader to understand the market from the prospect of economy, remittance flow, migrant population and also government initiatives. Saudi Arabia International Remittance Industry Research Report embark several macro economy factors and industry factors that have an influence over International Remittance Industry of Saudi Arabia. In the report we have highlighted Demographic Outlook of Saudi Arabia. The report discusses market revenue and forecast and also helps to understand future expected driving forces.

► Key Questions Answered
1. How remittance industry has performed in the past and what is the expected future scenario?
2. How COVID-19 has impacted the Saudi economy and how economy is expected to recover in coming years?
3. What are the leading countries for remittance outflow?
4. What is the current state of Saudi Arabia Inbound Remittances?
5. What is the role of digital remittances in the Saudi Arabia remittances market?
6. What are the major opportunities present in the Saudi Arabia remittances market?
7. Who are the key players in the Saudi Arabia remittance industry?
8. What was the impact of remittances on host country due to decline in migrant population?
9. What is the Average remittance Transaction Size in Saudi Arabia?
10. What are the Challenges in Remittance Industry in KSA?
11. How Saudi Arabia Digital Remittances market is performing?

► Find out more:- https://www.makreo.com/report/saudi-arabia-remittance-market-future-outlook-to-2027

► Saudi Arabia related reports:-
https://www.makreo.com/report/saudi-arabia-retail-market-performance-during-the-covid-19-outbreak-focus-on-e-commerce

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This release was published on openPR.