Saudi remittances and transfers hit new lows

Transfers by locals and remittances by foreign workers took a significant hit in July



Remittances sent by Saudi’s foreign workforce and transfers by citizens hit their lowest levels for years in July.

Data from the Saudi Arabian Monetary Agency showed that foreign remittances fell 19 per cent compared to July 2015, the equivalent of SAR 2.4bnb ($640m), according to Arab News.

Foreign transfers also declined by 35 per cent compared to June 2016, from SAR15.8bn ($4.21bn) to SAR10.3bn ($2.74bn), their lowest level since February 2013.

Similarly, transfers from Saudi nationals declined 38 per cent month-on-month from SAR5.5bn ($1.46bn) to SAR3.4bn ($906.6m).Local reports suggested this was the lowest amount seen since January 2007.

There are around 9.4 million foreign workers employed in the kingdom.

The average monthly remittance was SAR1,096 ($292) in July from SAR1,685 ($449) in June.

In July, reports suggested the kingdom was considering new mechanism that would compare remittances to the sender’s income.

Read: Saudi to compare expat remittances to earnings