RIYADH — Remittances sent by expatriates from Saudi Arabia rose in November 2025, reaching SR12.6 billion, a 5% increase compared to the SR12.03 billion recorded during the same period in 2024. This increase in remittances, as reported by the Saudi Central Bank (SAMA), reflects continued economic activity and the flow of funds to workers’ home countries. The data offers a snapshot of economic trends affecting both Saudi Arabia and the nations receiving these funds.
While year-over-year figures show growth, the November 2025 remittance total represents a decrease of 8% – or SR1.04 billion – from October 2025. This month-on-month decline suggests potential shifts in recent economic conditions or spending patterns. Simultaneously, remittances made by Saudi citizens living abroad also decreased significantly, dropping 22% to SR4.8 billion, the lowest amount in 21 months.
Understanding Remittance Trends in Saudi Arabia
Remittances play a vital role in the economies of many countries, particularly those relying on migrant worker contributions. Saudi Arabia is a major hub for expatriate employment, primarily in construction, domestic work, and increasingly, in sectors aligned with the Kingdom’s Vision 2030 diversification efforts. The sustained level of remittances indicates a continued demand for labor and overall economic stability within Saudi Arabia, despite fluctuations.
Several factors can influence the volume of remittances. These include global economic conditions in the recipient countries, currency exchange rates, and changes in Saudi Arabia’s labor market policies. Increased oil prices frequently boost economic activity and therefore the ability of workers to send money home, a dynamic particularly relevant to the Saudi Arabian economy.
Recent Economic Conditions
Saudi Arabia’s economy has shown resilience amid global challenges. The Kingdom’s non-oil sector, in particular, has experienced ongoing growth, driven by initiatives outlined in Vision 2030. This diversification is creating a broader range of employment opportunities, potentially impacting remittance patterns as new sectors develop.
However, global economic slowdowns and inflationary pressures can affect disposable income for expatriate workers, leading to reduced amounts sent as money transfers. The recent decrease in month-on-month remittances could be an early indicator of such pressures. The fluctuation in currency values can also impact the real value of the remittances received in the home country.
Changes in Saudi Labor Policies
The Saudi government has been implementing policies to increase the proportion of Saudi nationals in the workforce, sometimes referred to as “Saudization.” These initiatives aim to reduce reliance on foreign labor in certain sectors. While the long-term effects are still unfolding, such policies could ultimately influence the total volume of outflow of funds from the country as the composition of the workforce changes.
Additionally, steps to formalize the labor market and improve worker protections might also impact remittance behavior. Secure employment and reliable banking channels can facilitate easier and more frequent money transfers, although the overall effect isn’t always straightforward.
Decline in Remittances by Saudi Citizens Abroad
The 22% drop in remittances sent by Saudis residing overseas is a noteworthy development. This decrease to SR4.8 billion, the lowest in nearly two years, could signal a range of underlying causes. Possible contributors include shifts in investment strategies, changes in the number of Saudi citizens living abroad, or differing economic conditions faced by Saudis in foreign countries.
It’s possible increased domestic investment within Saudi Arabia is drawing funds back into the Kingdom. Vision 2030 actively encourages domestic and foreign investment, and Saudis abroad may be choosing to participate in these opportunities rather than sending funds for purposes outside the country. Further investigation would be needed to confirm this trend.
Another potential explanation involves fluctuations in income for Saudis living and working abroad, perhaps linked to economic downturns in their host nations. The decline in these international payments could also reflect a change in how Saudis manage their finances, with a greater reliance on direct investments or other financial instruments.
The Saudi Central Bank’s data doesn’t specify the reasons behind these shifts, but the decrease is significant enough to warrant further monitoring. Understanding the drivers of this decline will be crucial for assessing the overall economic outlook for Saudi citizens and the Kingdom as a whole. Lower foreign exchange outflow from Saudi citizens abroad may reduce pressure on the Saudi Riyal.
Meanwhile, financial institutions specializing in cross-border payments will likely be monitoring these trends closely. Remittance service providers adjust strategies to adapt to changes in flow, and these adjustments can affect costs and accessibility for both senders and recipients.
Looking ahead, SAMA is expected to release data for December 2025 in early February 2026. This next report will be essential in determining whether the November decline in overall remittances was a temporary fluctuation or the start of a longer-term trend. Analysts will also be reviewing broader economic indicators, including oil prices, inflation rates, and labor market statistics, to gain a more comprehensive understanding of the forces shaping remittance flows in and out of Saudi Arabia.
Further research and analysis will be necessary to pinpoint the specific causes contributing to the observed changes and assess their potential impact on both the Saudi economy and the economies of countries heavily reliant on these remittances.
