The major factor which has propelled the growth of the remittance industry in the Kingdom of Saudi Arabia is the high inflow of migrants into the country from around the world. Owing to more than nine million expatriates present in the country, the remittance industry in the KSA is bound to witness increase in remittance transaction volume till 2018. The market transaction volume is predicted to cross USD 78 billion by 2018.

 

The positive outlook for the remittance industry has led to establishment of major alliances between banks and MTOs aiming to tap in the benefits of the increase in the remittance volume in the country. Introduction of mobile banking to substitute formal remittance channels is now being given preference to extend remittance services to the rural and undeveloped areas. With ever growing global remittance market, companies are determined to tap into the potential of mobile remittance services, which will further aid the market growth. For the KSA, where mobile penetration has been increasing year after year, and a majority of population is unbanked, the introduction of mobile remittance services will have a great impact on the remittance market through provision of services to the migrants who do not have access to adequate remittance services, or those who have to pay high fee to send money to their home country.

 

Overall, the remittance industry of the KSA is on a development path, and would provide efficient and low cost remittance solutions in the coming few years. With opening of various MTOs and banks providing remittance services, the share of formal channels to send money would increase, bringing down the use of informal methods of Hawala. Furthermore, the facilities for conducting remittance transactions are becoming diverse, with services including direct credit to account and door-to-door money transfer (for specific countries).

 

According to an industry veteran, “The remittance market in the KSA would surely experience growth in the transaction volume, as 30% of the total population the KSA is composed of expatriates fuelling the remittance market. Developments in the construction sector of the economy would surely attract more foreign laborers, giving a further push to the remittance transaction volume in the KSA.”

 

“The KSA has experienced high growth in the flow of remittance to different countries since 2008, and this trend is expected to be followed further till 2018. Saudi Nitaqat policy initiated by the government of KSA has affected the major flow corridors, but the overall capital flow has been on a rise year after year. With development plans and infrastructure boom in the country, the demand for foreign laborers is expected to rise. This increase combined with the growth in the wage rate would surely propel the remittance market.” according to the Research Analyst, Ken Research.

 

The report titled “The KSA International Outbound Remittance Market- Rising Remittances to India to Fuel Growth” provides detailed overview on the Remittance Market in the KSA and helps readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, banks, MTOs and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.