Saudi Arabia Remittance Market Future Outlook to 2027

Overview

Executive Summary 

Scope of the Study
Makreo Research has published a report titled "Saudi Arabia Remittance Market Future Outlook to 2027". The report delves deeply into various parameters such as market size, segmentation, value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography.

Market Overview
Saudi Arabia is home to nearly 11 million immigrants who contribute USD 33.6 billion in remittances, making it the 2nd largest country for outbound flows. Personal remittances from Saudi expats have increased by 2.79% in 2021, amounting to roughly SR4.18 billion. The amount of money sent back to home nations by expatriates in 2021 was the largest since 2015, when it hit USD ~ billion. Despite the decrease of ~% in the fourth quarter of 2021 as compared to the fourth quarter of 2020, the value of remittances has increased.

Saudi Arabia Economy Performance: The year 2021, has been the recovery period for Saudi Arabia’s economy from the adverse effects of COVID-19 pandemic. The economy showed stronger than expected recovery and is growing continuously in 2022. According to the IMF, the GDP is expected to grow by 7.6% in 2022 due to the higher oil prices and non-oil activities. 

COVID-19 Impact: The outbreak of the virus had a positive impact over the Saudi Arabia remittance industry. In the year 2020, the remittances from expatriates in Saudi Arabia showed an increase by ~%. 

Market Segmentation
By Expatriates: In the first half of 2021, outbound flows increased from SAR ~ million in 2020 to SAR ~ million. The economy experienced improved growth and recovery as a result of the return to pre-pandemic levels, increased vaccination rates that made businesses operate more safely, and fewer government constraints on businesses. 

Inbound Remittance: 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. Due to the uncertainty posed by COVID-19 and the significant increase in remittances to Egypt and Morocco, the prediction for remittances in 2022 is for slower growth.

By Production: In the past ten years, the production of palm oil has surpassed that of other edible oils on a global scale. Over one-third of the world's vegetable oil is produced globally, with the majority of it concentrated in Malaysia and Indonesia. With a projected production of ~ million tons in 2022, soybean oil will rank as the second most extensively produced edible oil worldwide. The United States, Brazil, Argentina, and China are the top four producers in that order.

By Channels: The Saudi Remittance Market Channel is divided into formal and Informal Channels. With less personal travel and increasing reliance on digital remittance methods, there has been a major shift in remittance from informal to formal channels. Saudi migrant laborer’s started remitting money via both official and unofficial channels. Remittance flows changed as a result, moving from cash to digital and from informal to formal channels, with the only possibilities being the electronic remittance services provided by Saudi banks.

By Mode: The Saudi Remittance Market by Mode is divided into Cash and Digital. Digital remittance channels have been more well-liked since the COVID-19 epidemic, and given their growing adoption rate, it is anticipated that they will eventually replace more conventional means. Furthermore, 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.

Companies covered in the Saudi Arabia Remittance Market Report