India receives most remittance from Saudi Arabia
Dubai: India is the top remittance beneficiary from Saudi Arabia with USD 8.4 billion received in 2012, the World Bank has said.
Saudi Arabia is the second most remittance sending country after the US and is estimated to have sent over USD 27.6 billion of outward remittance in 2012, Saudi Gazette newspaper has reported.
The top three remittance beneficiaries from Saudi Arabia in 2012 are India (USD 8.4 billion), Egypt (USD 5.7 billion) and Pakistan (USD 3 billion).
A recent survey conducted by the National Commercial Bank said that the new 'Nitaqat' labour law in Saudi Arabia is expected boost these figures in 2013, as expatriates transfers even money prior to leaving the country.
Among the Gulf Cooperation Council (GCC) countries, the UAE comes second in sending remittance, with USD 20.3 billion, followed by Kuwait at USD 8.5 billion.
Robust oil prices and vibrant economic activity in Saudi Arabia led to a surge in urban development, which in turn, increased demand for foreign labour, said the report.
Remittance inflows data released by the World Bank and the IMF Balance of Payments statistics reveal that developing countries received the lion's share of remittance inflows.
It is estimated that 75.8 percent or USD 401 billion of last year's total inflows were transferred to developing countries.
Moreover, estimates for 2013 indicate a 6.7 percent year-on-year growth to a total of USD 427 billion. India, China, the Philippines is set to be the largest recipients.
According to the report, the World Bank estimates that India received USD 69.4 billion in 2012, followed by China and the Philippines receiving USD 60.2 billion and USD 24.5 billion, respectively.