The volume of money remitted by expatriates working in the Kingdom registered a new record of SR153.3 billion in 2014, local media said, quoting a report released by the Saudi Arabian Monetary Agency (SAMA).

According to SAMA, the remittances averaged SR19,000 per expat during the year.

The growth in remittances prevented the economy from accruing the full benefits of weeding out illegal workers from the Kingdom’s labor market, said Fadal Alboanain, an economic expert.

He, however, acknowledged that the growth rate in expat remittances fell to 4 percent in 2014 from 18 percent in 2013.

Although foreign workers have the right to send their salaries back home, he voiced concern that the volume of remittances might be too high compared to their real income.

He hinted that the SR153 billion figure could include income generated from other financial sources not related to salaries.

The outflow of money exceeding SR153 billion could lead to a depletion of hard currency and leakage of liquidity from the local economy, said Alboanain.

Despite the magnitude of funds flowing out of Saudi Arabia, he said that official data coming from official remittance channels do not tell the whole story on the ground.

There are also other unofficial means of remittances such as “mobile banks” that are run by people who provide remittance services, bypassing official channels.

These “mobile banks” tend to assist those involved in illegal business activities, he said.

The economic expert voiced concern such illegal money transfer channels. They include smuggling funds across the Kingdom’s border, conversion of money into jewelry worn by men or women and cover-up business activities, which make up a bigger portion of remittances, he alleged.

Many small and medium enterprises (SMEs) in maintenance, building, retail, and industry sectors are run on the basis of cover-up business, he said.

He also referred to alleged illegal activities such as drugs and human trafficking practiced by foreign workers that are considered sources of huge income for them. Such proceeds are pumped into legal (or illegal) money transfer channels, he claimed.