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 – Q3 2024

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 – Q3 2024

According to PayNXT360, the international inbound remittance market in Saudi Arabia has increased at 5.5% during 2023 to reach US$298.3 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 3.3%, increasing from US$282.7 million in 2023 to reach US$339.3 million by 2028.

Remittance outflow market in Saudi Arabia has increased at 2.3% during 2023 to reach US$41,073.7 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 1.3%, increasing from US$40,139.2 million in 2023 to reach US$43,253.1 million by 2028.

The remittance industry in Saudi Arabia is a vital component of its economy, providing significant support through foreign exchange inflows. Recent trends indicate a strong shift towards digitalization, with emerging fintech players reshaping the landscape by offering innovative solutions prioritizing cost-effectiveness and user experience. As competition intensifies among traditional providers and new entrants, strategic partnerships and technological investments will be essential for maintaining relevance.

The future of remittances in Saudi Arabia looks promising due to technological advancements and a focus on improving financial inclusion, which will create opportunities for stakeholders in a changing market.

Overview of Inward Remittances

• Significance of Inward Remittances: Money sent by people working in Saudi Arabia to their families in other countries is really important for those families and their communities. This money helps a lot with the economies of their home countries, especially in South Asia and Africa.

• Economic Impact: Money from people working abroad is important for many poor countries, like Saudi Arabia. It affects the country's financial situation and helps people buy things in their own country.

Identifying Trends and Developments in the Remittance Market

• Digital Transformation of Remittance Services: The way people send money in Saudi Arabia is changing greatly because of the internet and phones. The COVID-19 sickness is making this change happen even faster.

• Example: Fintech companies such as STC Pay and Alinma Pay have emerged, offering user-friendly digital solutions that simplify the remittance process for expatriates.

• Increased Use of Mobile Wallets: The adoption of mobile wallets is on the rise, driven by their convenience and lower transaction costs.

• Example: Integrating remittance services into popular mobile wallet applications has made it easier for users to send money internationally without visiting physical locations.

• Emergence of New Remittance Corridors: Specific corridors connecting Saudi Arabia with countries like India, Pakistan, and Egypt are becoming increasingly significant for remittance flows.

• Example: The corridor between Saudi Arabia and India has grown substantially due to the large Indian expatriate community working in various sectors within the Kingdom.

Analysing Currency Impact on Remittances

• Exchange Rate Influences: The value of the Saudi riyal against other currencies significantly impacts remittance flows. A stable or appreciating riyal can affect the purchasing power of remittances sent home.

• Local Currency Transactions: Initiatives promoting local currency transactions can streamline remittance processes and reduce costs for senders.

• Example: Partnerships between Saudi banks and foreign financial institutions facilitate local currency transfers, enhancing efficiency in cross-border payments.

Exploring Strategies by Players Operating in Remittance

• Diversification of Services: Companies in the remittance sector are expanding their service offerings beyond traditional money transfers to include services like bill payments and mobile recharges.

• Partnerships with Fintech Firms: Strategic collaborations are being formed to enhance service delivery and reach more customers.

• Example: Western Union has partnered with local fintech companies to leverage technology for better customer engagement and service efficiency.

• Investment in Technology: Players invest in advanced technologies such as blockchain to improve transaction speed and security.

• Example: MoneyGram's implementation of blockchain technology aims to enhance its service efficiency in Saudi Arabia's remittance market.
Recognizing Emerging Players and Market Competition

• Rise of Fintech Innovations: New entrants like STC Pay and PayTabs are disrupting traditional remittance models by offering lower-cost solutions that appeal to tech-savvy consumers.

• Example: STC Pay's expansion into international remittances positions it as a competitive player against established banks and money transfer operators.

• Intensifying Competition Among Providers: Established players face increased pressure from emerging fintech companies, driving innovation across the industry.

• Example: The entry of digital-first companies has prompted traditional banks to enhance their services and adopt more competitive pricing strategies.

Investment Trends and Future Outlook for Remittances

• Focus on Digital Infrastructure: Future growth in the remittance market will be driven by investments in digital infrastructure, including payment systems that facilitate faster transactions across borders.

• Government Initiatives for Financial Inclusion: Efforts to enhance financial inclusion will likely expand access to remittance services for underserved populations in Saudi Arabia.

• Positive Growth Projections: Despite current challenges, the long-term outlook for Saudi Arabia's remittance market remains optimistic due to increasing digital adoption and favourable regulatory environments that promote innovation in financial services.

This report from PayNXT360 provides a comprehensive analysis of the international inbound and outbound remittance market in Saudi Arabia. It covers the market opportunity by transaction value, transaction volume, average value per transaction, key market players, market opportunity by channel, consumer profile, and by sending / receiving countries.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

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

Reasons to buy

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• Competitive Landscape Overview: Obtain a comprehensive overview of the competitive landscape through detailed market share data of leading players in the remittance industry.

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• Future Market Growth Projections: The report includes forecasts for future growth in the remittance market, empowering businesses and investors to effectively plan and strategize for upcoming trends.