Riyadh, (Business News Report)| Remittances from foreigners in the Kingdom of Saudi Arabia increased by 2.8% during the past year 2021, compared to the previous year.
Remittances from foreigners reached 153.9 billion riyals ($41 billion), compared to 149.7 billion riyals ($39.9 billion) in 2020.
After they declined significantly in 2019 due to the Coronavirus pandemic, remittances from foreigners are rising for the second year in a row.
Remittances from foreigners in the Saudi Arabia were affected by the repercussions of the pandemic. They continued a decline that began in 2019, when they were affected by the decline in oil prices.
Saudi Central Bank (SAMA) data indicated that this growth is the weakest since 2015. Although, it achieved the largest growth in four years, during 2020.
On the other hand, remittances from Saudis abroad grew during 2021 by 34.8%. This is the highest growth rate since 2005, reaching 65.47 billion riyals ($17.45 billion). This is compared to 48.57 billion riyals ($12.95 billion) in 2020, which was the lowest in 16 years.
In a separate context, four of the SAIBOR tenors, measuring interest rate in Saudi Arabia, recorded the highest rise since 2018, at the end of the year 2021.
Short-term bank lending rates rose between 7.69 and 12.76 percent over the past year.
At the end of last December, the 12-month SAIBOR tenor suspended the highest jump among the other deadlines, at 1.06 percent, compared to 0.94 percent in early 2021.
The one-year tenor become the first to break the 1% barrier, according to the data of the Macrobond platform.
Meanwhile, the one-month tenor did not move much during the past year after closing at 0.70 percent. This is compared to 0.65 percent in early 2021.
The three-month tenor also recorded an increase of 11.11 percent during 2021, after closing at the end of the year at 0.90 percent. This is compared to 0.81 percent at the beginning of the year.
Banking sector workers follow the three-month tenor movement, due to its widespread use with individual and corporate loans.
Entities operating in the financial sector are seeking to expand the growth of their loan portfolio. At the time the Saudi lending interest recording low levels in the historical term.
The slight increase comes with the interest offered between Saudi banks, after the huge IPOs that took place in the past months contributed to attracting large liquidity in the local market.
