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Expat remittances from Saudi Arabia hit $3.4bn in February, a 37% annual growth 

Expat remittances from Saudi Arabia hit $3.4bn in February, a 37% annual growth 
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Updated 1 min 16 sec ago
Dayan Abou Tine 
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Expat remittances from Saudi Arabia hit $3.4bn in February, a 37% annual growth 

Expat remittances from Saudi Arabia hit $3.4bn in February, a 37% annual growth 
Updated 1 min 16 sec ago
Dayan Abou Tine 
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RIYADH: Expatriate remittances from Saudi Arabia surged to SR12.78 billion ($3.41 billion) in February, marking a 37.04 percent increase compared to the same month last year, according to recent data. 

Figures from the Saudi Central Bank, also known as SAMA, also reveal transfers made by Saudi nationals rose 33.53 percent during the same period to reach SR6.24 billion. 

This surge reflects a combination of domestic labor market momentum and broader international factors. 

The sharp rise is largely attributed to the Kingdom’s accelerating economic activity, particularly the rollout of Vision 2030 megaprojects, which has driven strong demand for foreign labor. As hiring increased, wage growth in key sectors also improved, giving expatriate workers greater sending power. 

According to Tuscan Consulting’s 2025 Salary Guide for the UAE and Saudi Arabia, salary trends in both countries are influenced by economic growth, talent demand, and nationalization policies. 

In the Kingdom, the surge in Vision 2030 megaprojects has intensified the demand for skilled professionals, leading to competitive compensation packages, particularly in sectors like technology, finance, and healthcare. While salary increases have moderated compared to the post-pandemic period, employers continue to offer attractive incentives to retain top talent. 

The guide also noted that Saudi salaries for specific roles are approximately 10–15 percent higher than those in the UAE, reflecting Saudi Arabia’s aggressive talent acquisition strategies. Additionally, implementing Saudization policies is reshaping workforce dynamics, prompting companies to balance attracting expatriates and integrating local talent. 

Supportive macroeconomic conditions further strengthened remittance flows. The Kingdom’s stable currency, zero tax on personal income and remittances, and enhanced financial transfer channels made it easier and more cost-effective for workers to send money abroad. 

However, remittance dynamics are also shaped by ongoing labor market policies in the Kingdom. Initiatives such as Saudization, which aims to increase the participation of Saudi nationals in the private sector, and expat levies, which impose fees on foreign workers and their dependents, have influenced hiring practices and workforce composition. 

While these measures are intended to create more opportunities for citizens and reduce reliance on foreign labor, they may also gradually moderate remittance outflows over time by curbing the growth of the expatriate workforce. 

Nonetheless, in the near term, the pace and scale of Vision 2030 megaprojects continue to drive high demand for foreign labor, particularly in construction, infrastructure, and services — supporting strong remittance flows despite structural shifts in employment policy. 

At the same time, the economic conditions in expatriates’ home countries have also played a role. In 2023, several top remittance-receiving nations, including Egypt, faced significant economic challenges. 

For instance, a currency crisis in Egypt caused the official exchange rate to diverge sharply from the parallel market, leading many expatriates to delay transfers or resort to informal channels. As a result, remittances to Egypt dropped 31 percent in 2023, according to a 2024 report by the World Bank Group. 

Looking ahead, oil prices, local employment policies, and global economic conditions — especially in expatriates’ home countries — will shape the future of remittance flows from Saudi Arabia. While US tariffs don’t directly affect the Kingdom, their ripple effects could. Slower global growth from trade tensions may weaken oil demand, affecting Saudi revenues and potentially delaying projects that employ many foreign workers. A stronger US dollar could also raise living costs in the Kingdom, reducing the money expatriates can send home. If Saudization accelerates, fewer foreign workers may further lower remittance outflows. 

Topics: SAMA

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Saudi Arabia drives record $4.1bn in March remittances to Pakistan
Business & Economy
Saudi Arabia drives record $4.1bn in March remittances to Pakistan

Saudi Arabia drives record $4.1bn in March remittances to Pakistan

Saudi Arabia drives record $4.1bn in March remittances to Pakistan
Updated 4 sec ago
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Saudi Arabia drives record $4.1bn in March remittances to Pakistan

Saudi Arabia drives record $4.1bn in March remittances to Pakistan
Updated 4 sec ago
Ismail Dilawar

KARACHI: Pakistan’s central bank governor on Monday said the current account would show a “substantial” surplus this year through June mainly on the back of a record inflow of remittances which crossed the $4 billion mark in March, with Saudi Arabia once again topping the list of biggest contributors. 

Pakistan received a record-high $4.1 billion in remittances in March 2025, which bodes well for the government’s efforts to revive an economy that it expects will expand three percent this year, State Bank of Pakistan Gov. Jameel Ahmad said at an event at Pakistan Stock Exchange in Karachi. 

The central bank had earlier projected economic growth to range from 2.5 percent to 3.5 percent.

“With this level of remittances, we are hoping that for the current fiscal year our current account will stay in surplus,” the governor said. “There will be a substantial surplus and this surplus is the best performance, I will say, on the external account during the last two decades.”

The country broke its own record in February when overseas Pakistanis remitted $3.1 billion. 

Pakistan has faced a serious shortage of dollars and had to restrict imports in 2023 to avoid an imminent default on its foreign debts, which was avoided with the help of a last-gasp $3 billion financial bailout from the International Monetary Fund.

The government is now waiting for the IMF’s executive board to approve the next $1 billion tranche of a new program, approved in September last year, to boost foreign exchange reserves that currently stand at $10.6 billion.

The current trend in the worker remittances inflows, Ahmad said, had made the central bank revise its earlier projection of $36 billion to $38 billion for this financial year. On the basis of such healthy inflows, the country’s foreign exchange reserves were expected to surge beyond $14 billion this year.

Ahmad said the country had paid most of its external debt for FY25 and was expected to receive as much as $5 billion from external sources by the end of June.

“I am quite confident that we will be receiving $4 to $5 billion before the end of June this year,” he said, without mentioning the exact source of these funds.

Pakistan’s total debt liabilities this year amounted to $26 billion of which $16 billion was supposed to be rolled over or refinanced, the governor said. Of this, he said, $3.7 billion debt was refinanced while close to $12.4 billion has been rolled over by friendly countries including China, Saudi Arabia and the UAE. 

Out of the remaining $10 billion debt, Pakistan has already repaid $8 billion and was required to repay only $2 billion in the remaining months of this year. 

“We have been servicing all those debt obligations on time,” said the SBP governor, adding that some inflows were delayed, but these would also come before June 30.

Jameel said Pakistan’s current account was stable and showed a $700 million surplus this year through February. Last year, the country’s current account showed $1.7 billion, close to half percent of GDP.

“Good thing is that we have been able to achieve this surplus despite substantial increase in imports,” he said, rejecting the claims that the government was still restricting imports.

Pakistan was also spending around $5.7 billion every month on oil and non-oil imports.

Due to the current account surplus and other policy and regulatory measures like exchange companies’ reforms, the Pakistani rupee had stabilized.

“The gap between the interbank market and the open market is very narrow,” Ahmad said.

While the economy was expected to grow 3 percent this year compared with 2.5 percent last year, agriculture was a major drag on economic expansion this year and rose less than one percent during the first six months through December.

Otherwise, he said, the economy was “doing well.”

“You can see the economic activity has already picked up. This is reflected in our high frequency data. Look at cement sales, look at auto sales, look at the high value textile exports,” Ahmad said.

While inflation was one of his biggest concerns previously, the central bank governor said the pace of price hikes had slowed to 0.7 percent last month, the lowest level in six decades.

Consumer prices in Pakistan have been backbreaking in recent years and rose 38 percent in May 2023. Pakistan’s central bank had to halve its interest rate to 12 percent since June last year to tame inflation in the country of more than 240 million people.

“From the current month onward, the inflation will be rising and ultimately stabilize within the target range of 5 to 7 percent [in the full year],” the central bank chief added.

Meanwhile, March 2025 data on remittances showed remittances reached $ 4.1 billion last month, a record high. In terms of growth, remittances increased by 37.3 percent and 29.8 percent year on year and month on month, respectively.

Cumulatively, with an inflow of $28 billion, workers’ remittances increased by 33.2 percent during July-March FY25 compared to $21 billion received during Jul-Mar FY24.

“Remittances inflows during March 2025 were mainly sourced from Saudi Arabia ($987.3 million), UAE ($842.1 million), the UK ($683.9 million) and the US ($419.5 million),” the data showed. 

Topics: remittances

Saudi Arabia, Pakistan rank as top solar markets in 2024: report

Saudi Arabia, Pakistan rank as top solar markets in 2024: report
Updated 8 min 32 sec ago
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Saudi Arabia, Pakistan rank as top solar markets in 2024: report

Saudi Arabia, Pakistan rank as top solar markets in 2024: report
Updated 8 min 32 sec ago
Arab News Pakistan

 

ISLAMABAD: Pakistan has joined the ranks of the world’s leading solar markets, importing 17 gigawatts (GW) of solar panels last year alone, according to the Global Electricity Review 2025 by Ember, an energy think tank in the UK.

In 2024, for the first time, solar power supplied more than 2,000 TWh of electricity, increasing by 474 TWh (+29 percent) from the previous year. This was the largest increase in generation from any power source in 2024. It took 8 years for solar to go from 100 TWh to 1,000 TWh of power — and then just 3 years to pass 2,000 TWh, meaning that solar has now been the largest source of new electricity globally for three years in a row.

Solar is now so cheap that large markets can emerge in the space of a single year – as evidenced in Pakistan in 2024. Amid high electricity prices linked to expensive contracts with privately-owned thermal power stations, rooftop solar installations in Pakistan’s homes and businesses soared as a means of accessing lower cost power. 

“The country imported 17 GW of solar panels in 2024 to meet this growing consumer demand, double the amount imported the year before,” the Global Electricity Review 2025 said.

“Within just a year, Pakistan became one of the world’s largest markets for new solar installations in 2024.”

Pakistan’s case shows that the low-cost, fast-to-build nature of solar power can transform electricity systems at an unprecedented rate. Updated system planning and regulatory frameworks are needed alongside this deployment to ensure a sustainable and managed transition.

In the Middle East, Saudi Arabia imported 16 GW in 2024, more than double the amount imported the year before. Oman saw the largest percentage growth in imports in the region, with 2.5 GW of imports in 2024 representing a fivefold increase from the year before. 

South Africa imported 3.8 GW of solar panels in 2024, following a record-breaking 2023 when 4.3 GW were imported as consumers turned to the technology amid rising blackouts. Nigeria and Morocco imported 1.3 GW and 1.1 GW respectively, marking the first time that either country has imported more than 1 GW in a single year.

The expansion of solar power is a worldwide phenomenon, with 99 countries doubling the amount of electricity they produce from solar power in the last five years. The majority of solar generation now comes from non-OECD countries (58 percent), with China alone making up 39 percent of the global total.

Increases in generation have been achieved thanks to the pace of capacity additions, the Global Electricity Review said. The world installed a record 585 gigawatts of solar capacity last year – 30 percent more than in 2023, and more than double the amount installed in 2022. Having surpassed 1 TW of solar power in 2022, it took only two years to install the next 1 TW.

“This is not just unprecedented for solar power – it is a rate of growth that no power source has seen before. In fact, the solar capacity installed in 2024 is more than the annual capacity installations of all fuels combined in any year before 2023,” the Global Electricity Review 2025 report added. 

As solar’s share of the global electricity mix has risen to 6.9 percent of global generation in 2024, some countries are showing it is possible to incorporate much larger amounts. There are now 21 countries that generate more than 15 percent of their electricity from solar power, up from just three countries five years ago.

Topics: solar

IEA cuts 2025 oil demand forecast amid signs of global slowdown

IEA cuts 2025 oil demand forecast amid signs of global slowdown
Updated 15 min 49 sec ago
Nour El-Shaeri
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IEA cuts 2025 oil demand forecast amid signs of global slowdown

IEA cuts 2025 oil demand forecast amid signs of global slowdown
Updated 15 min 49 sec ago
Nour El-Shaeri

RIYADH: The International Energy Agency has downgraded its outlook for global oil demand growth in 2025, warning that a weakening global economy and rising trade tensions are weighing heavily on consumption.

In its monthly oil market report released  on Tuesday, the Paris-based agency revised its demand growth forecast down by 300,000 barrels per day, to 730,000 bpd for 2025. The IEA expects the slowdown to continue into 2026, when demand is projected to rise by just 690,000 bpd—one of the slowest rates in recent years.

The downgrade comes despite a strong first quarter, in which global oil consumption rose by 1.2 million bpd—its fastest pace since 2023.

However, that momentum is expected to fade amid a more fragile economic backdrop, particularly in advanced economies, where industrial activity and freight transport remain under pressure.

At the same time, oil prices have fallen sharply in recent weeks, reflecting growing concerns about oversupply and faltering demand.

Brent crude, the international benchmark, has dropped around $10 per barrel since March, falling to $65 and briefly dipping below $60 earlier this month—the lowest level since 2021.

According to the IEA, crude production among nine key OPEC+ countries rose by 60,000 bpd in March, reaching 21.94 million bpd—exceeding the group’s agreed target by 830,000 bpd. Saudi Arabia, which has led efforts to curb supply, edged output up slightly to 9.01 million bpd, just above its target of 8.96 million bpd. The Kingdom retains the largest spare capacity in the group, with the ability to raise output by more than 3 million bpd if required.

Other major producers, including Iraq, the UAE and Kuwait, all produced well above their assigned quotas. Iraq pumped 4.32 million bpd in March, compared to a target of 3.88 million bpd. The UAE exceeded its ceiling by 350,000 bpd, while Kuwait overproduced by 100,000 bpd. Nigeria was the only major member to fall short of its target, producing 1.4 million bpd—just below its 1.5 million bpd quota—amid ongoing operational and security challenges.

In a further sign of a weakening market, global oil inventories rose by 21.9 million barrels in February, climbing to 7.65 billion barrels. Crude and feedstock stocks increased by over 41 million barrels, while refined product inventories fell by 19.2 million barrels, driven by draws in OECD countries.

Refining margins also softened in March, particularly in the Atlantic Basin, where cracks for middle distillates narrowed. In response, the IEA cut its 2025 forecast for global crude throughput by 230,000 bpd, now expecting refiners to process 83.2 million bpd this year. A modest increase to 83.6 million bpd is forecast for 2026.

Despite plans by OPEC+ to increase output targets by 411,000 bpd in May, the IEA warned that any actual increase could be muted by existing overproduction and patchy compliance with quotas. It also trimmed its forecast for non-OPEC+ supply growth in 2025 by 260,000 bpd, now projecting a rise of 1.2 million bpd.

With rising economic risks, volatile geopolitics, and uncertain production policy all in play, the global oil market faces a turbulent road ahead.

Topics: IEA Demand Outlook

UAE to resume flights to Syria after 12-year hiatus

UAE to resume flights to Syria after 12-year hiatus
Updated 52 min 31 sec ago
MOHAMMED AL-KINANI
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UAE to resume flights to Syria after 12-year hiatus

UAE to resume flights to Syria after 12-year hiatus
Updated 52 min 31 sec ago
MOHAMMED AL-KINANI

JEDDAH: The UAE is set to reestablish air links with Syria, announcing the resumption of flights after more than a decade-long suspension, according to the country’s official news agency.

Flights between the UAE and Syria were halted in 2012, following the outbreak of the Syrian civil war. Both Emirates and Etihad Airways suspended their operations to Damascus due to rising security concerns, in alignment with broader regional moves at the time.

In a shift that began in December 2018, the UAE reopened its embassy in Damascus — an early signal of thawing relations. The country’s aviation authority subsequently announced it was exploring the possibility of restarting flights. However, at the time, both Emirates and Etihad maintained that they had no immediate plans to resume service, while continuing to monitor the situation.

Syria’s main international airport in Damascus resumed international flights on Jan. 7, marking the first commercial operation since opposition forces ousted Bashar Al-Assad the previous month.

The UAE’s General Civil Aviation Authority confirmed that coordination is currently underway to finalize the procedures necessary for reestablishing direct flights. The move is aimed at enhancing air connectivity and facilitating the flow of passengers and cargo, WAM reported.

This decision is part of a broader regional trend of Arab nations re-engaging with Syria.

In January, Saudi Arabia resumed commercial flights and launched an air bridge to deliver critical humanitarian aid, supporting reconstruction efforts under Syria’s new leadership. On March 19, the Kingdom inaugurated a direct route from Dammam—the first in 13 years—serving more than 2.5 million Syrian residents in Saudi Arabia and helping reunite families.

Qatar Airways followed suit on April 15, reinstating its service to Damascus after nearly 13 years. The airline now offers three weekly flights, signaling a significant step toward the normalization of travel and trade.

In parallel, Syria’s new government has ramped up diplomatic outreach, with Foreign Minister Asaad Al-Shaibani visiting several regional capitals, including Riyadh, Doha, and Abu Dhabi, in efforts to restore ties and attract support for rebuilding the country.

Topics: aviation flights

Saudi inflation holds at 2.3% in March amid rising housing and food prices

Saudi inflation holds at 2.3% in March amid rising housing and food prices
Updated 30 min 58 sec ago
Nadin Hassan
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Saudi inflation holds at 2.3% in March amid rising housing and food prices

Saudi inflation holds at 2.3% in March amid rising housing and food prices
Updated 30 min 58 sec ago
Nadin Hassan

RIYADH: Saudi Arabia’s inflation rate accelerated to 2.3 percent in March, driven by higher costs for housing rents, food, and personal goods, official data showed.

The increase was notably influenced by the housing segment’s 25.5 percent weight in the Consumer Price Index.

According to the General Authority for Statistics, the rise was mainly due to a 6.9 percent increase in the housing, water, electricity, gas, and other fuels category. This was largely fueled by an 8.2 percent jump in actual housing rents, with apartment rents surging 11.9 percent.

Food and beverage prices also contributed to the annual uptick, climbing 2 percent, primarily due to a 3.8 percent increase in meat and poultry costs. Meanwhile, the personal goods and services category rose 3.9 percent, driven by a sharp 26.2 percent spike in the prices of jewelry, watches, and precious antiques.

Other contributing factors included the restaurants and hotels segment, which rose 1.3 percent, largely due to a 3.3 percent increase in hotel and furnished apartment service prices. Education costs went up by 1.1 percent, with tertiary education fees rising 4.3 percent.

In contrast, transport prices fell 0.8 percent, driven by a 1.5 percent decline in vehicle purchase costs. The furnishings and household equipment category dropped 2.6 percent, while clothing and footwear prices declined 0.8 percent, impacted by a 1.9 percent drop in ready-made clothing.

On a monthly basis, the CPI increased by 0.3 percent in March compared to February. This was attributed to a 0.5 percent rise in the housing, water, electricity, gas, and other fuels segment, driven by a 0.6 percent increase in housing rents.

The food and beverage group also edged up by 0.3 percent month on month, as vegetable prices rose 2 percent. Other notable monthly increases included personal goods and services at 0.4 percent, restaurants and hotels at 0.5 percent, and recreation and culture at 0.6 percent, as well as education at 0.7 percent, clothing and footwear at 0.3 percent, and communication at 0.1 percent. 

The report also noted a 0.9 percent monthly decline in furnishings and household equipment, while prices in the transport, health, and tobacco categories showed no significant change.

Wholesale price index

In a separate report, GASTAT noted that Saudi Arabia’s Wholesale Price Index increased 1.5 percent year on year in March, driven by a 3.2 percent rise in the prices of other transportable goods and a 3.6 percent increase in agriculture and fishery products.

Food products, beverages, tobacco, and textiles edged up 0.1 percent annually, supported by a 2.1 percent rise in grain mills, starch, and other food items, as well as a 1.2 percent increase in leather and leather product prices, including footwear.

By contrast, prices for metal products, machinery, and equipment fell 0.2 percent, driven by a 3.5 percent drop in general-purpose machinery and a 5.5 percent decline in radio, television, and communication equipment costs.

Ores and minerals recorded a 1.9 percent year-on-year decrease due to falling prices for stone and sand.

On a monthly basis, the WPI rose 0.4 percent in March compared to February, led by a 0.4 percent increase in the prices of metal products, machinery, and equipment.

This was primarily driven by a 2.9 percent rise in fabricated metal products and a 0.6 percent increase in electrical machinery and apparatus.  

The same rate of increase was recorded in other transportable goods, while food-related categories edged up 0.2 percent, driven mainly by a 0.5 percent rise in the prices of grain mills, starch, and other food products, along with a 0.1 percent increase in prices of meat, fish, fruits, vegetables, oils, and fats. 

Agriculture and fishery product prices inched up 0.1 percent, while the ores and minerals segment remained stable with no significant change.

Topics: GASTAT Inflation CPI

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Latest updates

Saudi Arabia drives record $4.1bn in March remittances to Pakistan
Saudi Arabia drives record $4.1bn in March remittances to Pakistan
Saudi Arabia, Pakistan rank as top solar markets in 2024: report
Saudi Arabia, Pakistan rank as top solar markets in 2024: report
IEA cuts 2025 oil demand forecast amid signs of global slowdown
IEA cuts 2025 oil demand forecast amid signs of global slowdown
UAE to resume flights to Syria after 12-year hiatus
UAE to resume flights to Syria after 12-year hiatus
Saudi inflation holds at 2.3% in March amid rising housing and food prices
Saudi inflation holds at 2.3% in March amid rising housing and food prices

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