Foreign remittances decline in January by 7%

JEDDAH: Monthly foreign remittances have declined by 6.7 percent, down SR907 million ($ 24.18 million) from SR13.52 billion in December 2016 to SR12.61 billion in January.

An Al- Eqtisadiya report reveals that January remittances, despite having declined, still remained high as compared to average remittances over the previous 12- month period of SR11.75 billion.

Annual foreign remittances increased overall, the report reveals, by 4.86 percent ( SR584 million) from SR12.03 billion in January 2016.

Remittances were highest on record in June 2015, with SR15.8 billion transferred abroad during the month, a positive difference of 20.3 percent or SR3.22 billion from January 2017. In July 2015, remittances reached the lowest point since February 2013, with only SR10.3 billon in remittances.

In 2016, a total of SR151.9 billion were transferred by expats, as compared to SR156.9 billion the previous year, thus representing a decline of 3 percent or around SR5 billion. This is the first annual decline after a consecutive 11- year streak of growth between 2005 and 2015.

As for transfers sent by Saudi citizens abroad, the report indicates a growth of 13.4 percent in January to reach SR4.95 billion, as compared to SR4.37 billion in December 2016. Transfers in January were highest since October 2016, when a total of SR5.36 billion was transferred abroad by Saudi nationals. This represents a consecutive threemonth increase in transfers abroad.

On an annual basis, however, transfers declined in January by around 8.5 percent from January 2016, when transfers amounted to SR5.41 billion.