Saudi Arabia is set to introduce a new voluntary pension and savings programme that will extend to both Saudi nationals and foreign workers. This initiative, called Public Pension and Savings Programme, aims to encourage local savings and reduce the outflow of remittances.
As of the first quarter of 2025, 77% of the country’s social insurance system subscribers were expatriates. Last year, foreign workers in Saudi Arabia sent home SAR 144.2 billion in remittances, which is 14% more than in 2023. Over the last decade, total remittances have reached SAR 1.43 trillion.
The new programme is designed to allow foreign workers to save and invest within Saudi Arabia rather than sending most of their earnings abroad. This comes after the government approved major pension reforms in July 2024, which included raising the retirement age, extending contribution periods, and increasing contribution rates.
The IMF has welcomed the new programme, noting that it could significantly boost household savings and help reduce the amount of money being sent overseas.
For foreign workers, this presents a valuable opportunity to invest locally and build savings within Saudi Arabia, ultimately contributing to financial security and stability.
Earlier this summer, Saudi Arabia has announced plans to allow foreigners to purchase property starting in 2026, marking another significant change that will make it easier for expatriates to invest in the country.
