Saudi Arabia Plans Voluntary Pension and Savings Program for Saudis and Expatriates
Saudi Arabia is preparing to announce a new voluntary pension and savings program that will be available to both Saudi citizens and foreign workers, according to the International Monetary Fund’s (IMF) Article IV consultation report, reported by Al-Eqtisadiah newspaper.
The goal of the program is to increase household savings and reduce the outflow of workers’ remittances abroad. The program, called the Public Pension and Savings Program, is expected to be launched soon. Most Viewed: Foreign pilgrims can now direct book for Umrah visa through Umrah Nusuk
Foreign remittances from Saudi Arabia rose by 14 percent last year, reaching SR144.2 billion ($38.4 billion). Between 2015 and 2024, remittances totaled SR1.43 trillion.
As of the first quarter of 2025, Saudi Arabia had 12.8 million subscribers in the social insurance system, of which 77 percent (nearly 10 million) were expatriates.
The IMF report noted that Saudi Arabia recently approved pension reforms in July 2024 to improve long-term financial sustainability. These reforms included:
➤ Raising the retirement age.
➤ Extending contribution periods.
➤ Increasing contribution rates.
➤ Restricting certain pension benefits.
The IMF explained that while these changes will not bring immediate fiscal savings because the system is currently balanced, it is important to assess and disclose the medium-term impact.
The upcoming voluntary pension and savings program for both Saudis and expatriates was described as a positive step that could boost household savings and lower foreign remittances. Recommend: Saudi Arabia arrests expatriates for cable thefts
The IMF also highlighted the size of GOSI’s assets (General Organization for Social Insurance), which equal 32 percent of Saudi Arabia’s GDP. It stressed the need for greater transparency, including clearer financial disclosures and rules for asset allocation.
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| Saudi Arabia Plans Voluntary Pension and Savings Program for Saudis and Expatriates |