Saudi Arabia is set to introduce a voluntary pension and savings scheme for citizens and foreign workrs, according to the International Monetary Fund (IMF) latest Article IV report. The step is part of the Kingdom wider plan to boost household savings and reduce the heavy outflow of money sent abroad.
The Public Pension and Savings Program is expected to be unveiled soon. The move comes as foreign remittances from Saudi Arabia climbed 14 percent in 2024, reaching SAR 144.2 billion (USD 38.4 billion). Over the past decade, remittances have totaled SAR 1.43 trillion mostly from the foreign skilled workers workforce.
Official data shows that by the first quarter of 2025, 12.8 million people were enrolled in the social insurance system with nearly 10 million, around 77 percent, being non-Saudis.
The IMF pointed out that pension reforms approved in July 2024 aim to make the system more sustainable. Changes include a higher retirement age, longer contribution periods, increased contribution rates and stricter eligibility rules. While these reforms may not bring immediate fiscal relief, their impact will be important.
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The upcoming Saudi Arabia voluntary pension and savings scheme is seen as a practical step to strengthen financial resilience and lower reliance on remittances. The IMF also noted that the General Organization for Social Insurance (GOSI) holds assets equal to about 32 percent of Saudi GDP, calling for greater transparency and clearer investment policies.
