Sending image from Matlab via serial port and sending it back

I suspec

sylarhero:
I don't know how much would it take because I shut down the transfer after a few minutes since it was still busy...so it takes much ore than 50 seconds...

I suspect that the program is crashing leading it to hang - you are probably overwriting memory
what do you do with the data in the arduino? write it to a LCD display?
if you are intending to store it as a 4006003 matrix in RAM I suggest you use a raspberry pi or similar device with suitable memory