The Philippines and Saudi Arabia maintain strong economic ties, with millions of Filipinos working in the Kingdom. One of the most common financial services utilized by Filipino workers in Saudi Arabia is remittance — sending money back home to support their families. However, with numerous money transfer services available, choosing the best exchange rate for remittance can make a significant difference in the amount that ends up in the hands of the recipients. In this article, we’ll explore the options available to Filipino workers in Saudi Arabia, helping them determine which exchange service provides the best rates for sending money to the Philippines.

Why is the Exchange Rate Important?

When sending remittances, the exchange rate determines how much of the foreign currency (Saudi Riyals, in this case) is converted into Philippine Pesos. Even small differences in exchange rates can have a big impact on the total amount of money received by the recipient.

For instance, if the exchange rate is 1 SAR = 13.50 PHP, and you send 10,000 SAR, the recipient would receive 135,000 PHP. However, if the exchange rate is 1 SAR = 13.80 PHP, the recipient would receive 138,000 PHP, making the difference 3,000 PHP — a considerable amount when sending large sums. For Filipino workers, this difference could mean the ability to pay for more goods, services, or essential expenses back home.

Factors to Consider When Choosing a Remittance Exchange

Before diving into which exchange offers the best rates, it’s essential to consider the following factors that can affect remittance choices:

1. Exchange Rate: The rate at which your Saudi Riyals are converted into Philippine Pesos is critical. Always compare exchange rates before sending money.
2. Transfer Fees: Some money transfer services charge fixed fees or percentage-based fees depending on the amount you’re sending. Be sure to account for these charges to avoid unexpected deductions.
3. Transfer Speed: How quickly do you need the money to arrive in the Philippines? Some services can send money instantly, while others might take a few days.
4. Convenience: The ease with which you can make transfers, whether online, via mobile apps, or at physical locations, plays a big role in selecting a service.
5. Security: Ensure that the money transfer service you choose is secure and reliable, providing peace of mind for both you and the recipient.

The Most Popular Money Transfer Services for Sending Money from Saudi Arabia to the Philippines

Now that we understand the factors to consider, let’s take a closer look at some of the most popular money transfer services used by Filipino workers in Saudi Arabia to send money home.

1. Western Union

Western Union is one of the largest and most widely recognized money transfer companies in the world. The company has a vast network of locations throughout Saudi Arabia and the Philippines, making it accessible for many remitters.

• Exchange Rate: Western Union offers competitive exchange rates, but they can fluctuate depending on the day and the specific location. Generally, they offer rates close to the mid-market rate but may include additional margins.
• Fees: Western Union charges a transfer fee based on the amount being sent. For larger transfers, the fee can be significant, but it offers promotional deals that can reduce the cost.
• Transfer Speed: Transfers can take anywhere from a few minutes to a few days, depending on the service chosen.
• Convenience: Western Union allows both online and in-person transfers, making it a flexible option for many.

1. Remitly

Remitly is an increasingly popular online money transfer service with a focus on international remittance, particularly to the Philippines. Known for its ease of use and good exchange rates, Remitly is a great option for Filipino workers in Saudi Arabia.

• Exchange Rate: Remitly provides competitive exchange rates, and they often have better rates than traditional banks and other remittance services.
• Fees: Remitly’s fees are relatively low, but they can vary depending on the delivery method (bank deposit, cash pickup, etc.).
• Transfer Speed: Remitly offers both "Economy" (3-5 business days) and "Express" (within minutes) options, giving senders flexibility depending on how quickly the money needs to be delivered.
• Convenience: The service can be accessed via a mobile app or website, which makes it extremely convenient for tech-savvy senders.

1. MoneyGram

Like Western Union, MoneyGram is another established player in the remittance industry. With an extensive network of agents and locations, MoneyGram provides access to many Filipino workers across Saudi Arabia.

• Exchange Rate: MoneyGram offers exchange rates that are competitive, but, like Western Union, they may include a margin over the mid-market rate.
• Fees: Transfer fees can be higher for larger amounts, but MoneyGram provides transparent pricing, so there are no hidden charges.
• Transfer Speed: Transfers can be completed quickly, with some options allowing for same-day delivery.
• Convenience: MoneyGram allows both online and in-person transfers, offering flexibility for senders who prefer physical locations or online transactions.

1. TransferWise (now Wise)

Wise is a digital-first money transfer service that prides itself on offering low fees and mid-market exchange rates, making it an attractive option for remittance.

• Exchange Rate: Wise uses the real, mid-market exchange rate with no markup, which means you get the best possible rate available on the market.
• Fees: Fees with Wise are transparent and relatively low compared to traditional money transfer services.
• Transfer Speed: Wise transfers can take a few hours to a few days, depending on the transfer method and country-specific banking hours.
• Convenience: Wise is entirely online, and the service can be accessed through its website or app, making it a great choice for tech-savvy senders.

Which Exchange Gives the Best Rate?

When comparing the options, Wise stands out for offering the best exchange rate since it uses the mid-market rate with no hidden markups. However, the best service for you will depend on your specific needs. If you need the money to arrive instantly, Western Union or MoneyGram might be your best option, even though their exchange rates may be slightly lower. If you're looking for the most cost-effective option in terms of fees, Remitly and Wise often provide the most competitive combination of low fees and favorable exchange rates.

Conclusion

Choosing the best remittance exchange for sending money from Saudi Arabia to the Philippines depends on your priorities, whether that’s the exchange rate, transfer speed, or cost. Always compare exchange rates before sending money and factor in any fees or other charges. By doing so, Filipino workers can maximize the amount they send home, ensuring their families receive the support they need.

Disclaimer:

This article is for informational purposes only and does not constitute financial advice. Exchange rates and transfer fees are subject to change and can vary depending on the service provider, market conditions, and other factors. Please verify the latest information before making any financial decisions.