Expat remittances hit 2-year high in Saudi Arabia

Cairo: Expatriates’ remittances in Saudi Arabia surged to SR12.9 billion in July, the highest in two years, according to official figures.

The July transfers marked a 21% rise compared to the same month last year, figures from the Saudi Central Bank showed.

Compared to the remittances registered last June, the July transfers also showed an increase of SR849 million or a 7% rise.

Moreover, the foreigners’ transfers in July were the highest since June 2022 when they reached SR13.2 billion, Saudi news portal Akhbar24 said, citing a recent central bank report.

Meanwhile, Saudis’ transfers abroad in July slightly rose to reach SR5.81 billion against SR5.80 billion the same month last year.

Saudi Arabia, a country of 32.2 million people, is home to a large community of expatriate workers. In recent years, the kingdom has stepped up efforts to regulate its labour market and make it more stable, competitive and attractive to skilled workers.

Last month, the Saudi government approved a host of substantial labour changes to preserve contractual rights. Accordingly, a notice for terminating an employment contract with non-specific duration is now put at 30 days if the notice comes from the worker, and 60 days on the employer’s side.

According to the latest amendments, maternity leave has increased from 10 weeks to 12.

Furthermore, a three-day paid leave is granted to the worker in case of his/her brother’s or sister’s death.

In 2020, Saudi Arabia introduced major labour reforms, drastically improving its sponsorship system.

The reforms, which went into effect in the ensuing year, allow job mobility and regulate the exit and re-entry visa issuance for expatriate workers without employers’ approval.