Dublin, Jan. 17, 2024 (GLOBE NEWSWIRE) -- The "Saudi Arabia International Remittance Market Business and Investment Opportunities - Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics - Q2 2023" report has been added to ResearchAndMarkets.com's offering.
The international inbound remittance market in Saudi Arabia has increased at -1.6% during 2022 to reach US$287.0 million in 2023. Over the forecast period (2023-2028), market size is expected to record a CAGR of 2.7%, increasing from US$291.7 million in 2022 to reach US$328.7 million by 2028.
The international outbound remittance market in Saudi Arabia has increased at 2.0% during 2022 to reach US$ 39.34 billion in 2023. Over the forecast period (2023-2028), market size is expected to record a CAGR of 1.7%, increasing from US$ 38.56 billion in 2022 to reach US$ 42.70 billion by 2028.
The remittance market in the Kingdom of Saudi Arabia is projected to record strong growth over the next few quarters. Inflation cooldown, coupled with the rising migrant population in the country, is expected to emerge as the major growth driver for the remittance industry in Q4 2023 and Q1 2024. Remittance outflows, especially to Kenya, have reported strong growth in H1 2023, and the trend is projected to further continue in H2 2023.
To tap into the larger pool of migrant communities, digital remittance firms are seeking to forge strategic alliances for launching new services in the Kingdom. Going forward, this trend is expected to aid the competitive landscape, driving innovation and market growth in Saudi Arabia. Overall, the publisher maintains a positive growth outlook for the industry over the next three to four years in the Kingdom.
The consistent decline in inflation is expected to aid the growth of the remittance industry in Saudi Arabia
The Consumer Price Index (CPI), in October 2023, reported a decline for the fifth month in a row in the Kingdom of Saudi Arabia. The inflation rate declined by 1.6% in the month, which is 0.1% lower compared to the 1.7% decline reported in September 2023. This stability in the inflation rate indicates the strength of the Saudi Arabian economy, and as a result, the publisher expects remittance outflows to increase over the next few quarters.
Remittances from Saudi Arabia to Kenya surged significantly on the back of growing migrant population
Kenyans living and working in Saudi Arabia are now sending more money back home than those in the United States. This shift highlights the ongoing impact of high inflation on people's incomes in the United States.
Based on the data revealed by the Kenyan Central Bank, remittances from Saudi Arabia increased by 30.28% to reach US$246 million in the first eight months of 2023. During the same period in 2022, the remittance outflows from Saudi Arabia to Kenya stood at US$188.8 million.
The two countries are expected to sign a labor agreement over the next few months, which means more professionals will enter the Saudi Arabian market from Kenya. This will further aid the growth of the remittance market in the Kingdom over the next three to four years.
As of now, majority workers are hired and linked to employers through agencies operating under the GCC's kafala system. This system mainly oversees migrant workers, especially in domestic and construction roles.
Firms are entering into strategic collaborations to provide remittance services to Nepalese in Saudi Arabia
With the market projected to report strong growth over the next three to four years, players in the segment are looking to garner more market share by launching remittance services for more and more migrant communities.
Esewa Money Transfer, the digital remittance firm under F1Soft Group, entered into a strategic collaboration with Enjaz Payment Services Company in September 2023. As part of the alliance, Nepalese migrants in Saudi Arabia can send money to recipients in their country using either 150 Enjaz branches or the digital app.
The funds can be received through 13800+ remit agents, 100000+ Esewa Money Transfer locations, banks, and institutions. This partnership will also allow Enjaz to reach 7.5 million+ Esewa wallet users directly for loading remittances.
Going forward, the publisher expects more such strategic collaborations to take place in the remittance market in the Kingdom of Saudi Arabia, thereby aiding the competitive landscape in the sector. The competitive landscape will be also driven by the entry of new and innovative startups in the market from the short to medium-term perspective.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 130 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value (USD) in 2023 | $287 Million |
| Forecasted Market Value (USD) by 2028 | $328.7 Million |
| Compound Annual Growth Rate | 2.7% |
| Regions Covered | Saudi Arabia |
Scope
International Inbound Market Opportunity Trend Analysis in Saudi Arabia
- By Transaction Value
- By Transaction Volume
- By Average Value Per Transaction
Market Share of Key Players in Saudi Arabia
International Inbound Market Opportunity Trend Analysis by Channel in Saudi Arabia
- Digital (transaction value, transaction volume, average value per transaction)
- Mobile (transaction value, transaction volume, average value per transaction)
- Non-Digital (transaction value, transaction volume, average value per transaction)
International Inbound Remittance Analysis of Consumer Profile in Saudi Arabia
- Analysis by age group of senders
- Analysis by income of senders
- Analysis by occupation of senders
- Analysis by occupation of beneficiaries
- Analysis by purpose
International Inbound Remittance Flow Analysis (Country to State/Region) in Saudi Arabia
- Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
- Market share by transfer channel by key state/regions
International Outbound Market Opportunity Trend Analysis in Saudi Arabia
- By Transaction Value
- By Transaction Volume
- By Average Value Per Transaction
International Outbound Market Opportunity Trend Analysis by Channel in Saudi Arabia
- Digital (transaction value, transaction volume, average value per transaction)
- Mobile (transaction value, transaction volume, average value per transaction)
- Non-Digital (transaction value, transaction volume, average value per transaction)
International Outbound Remittance Analysis of Consumer Profile in Saudi Arabia
- Analysis by age group of senders
- Analysis by income of sender
- Analysis by occupation of sender
- Analysis by occupation of beneficiaries
- Analysis by purpose
International Outbound Remittance Flow Analysis (State/Region to Country) in Saudi Arabia
- Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
- Market share by transfer channel by key state/regions
For more information about this report visit https://www.researchandmarkets.com/r/rufhcb
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