Riyadh: The Kingdom of Saudi Arabia (KSA) is preparing to introduce a new voluntary pension and savings scheme that will be available to both citizens and expatriates.
The initiative, reported in the International Monetary Fund’s (IMF) latest Article IV consultation and cited by Al-Eqtisadiah newspaper, aims to encourage households to save more and reduce the flow of money sent abroad by foreign workers.
In 2024, remittances from Saudi Arabia rose 14 percent to Saudi Riyals (SR) 144.2 billion. Over the past decade, they reached SR 1.43 trillion.
By the first quarter of 2025, the Kingdom’s social insurance system had 12.8 million subscribers, with expatriates making up nearly 10 million, or 77 percent.
The IMF noted that pension reforms introduced in July 2024 — including a higher retirement age, longer contribution periods and increased contribution rates — will help secure the system’s long-term sustainability.
While these changes will not deliver immediate financial savings, the IMF said the new voluntary savings scheme is a positive step that could improve household savings and reduce reliance on remittances.
The Fund also highlighted that assets managed by the General Organisation for Social Insurance (GOSI) amount to 32 percent of Saudi Arabia’s GDP, urging greater transparency in financial reporting and asset management.
