UAE EXCHANGE TARGETS REMITTANCE GROWTH OF 10% ON HIGHER LIQUIDITY

Company will continue to pursue investments in technology start-ups, chief executive Promoth Manghat says

UAE Exchange expects to grow the volume of remittances it handles by up to 10 per cent this year, driven by improved economic growth forecasts, rising liquidity in the region and new acquisitions.

Global remittances grew 7 per cent to $613 billion (Dh2.25 trillion) in 2017, according to the World Bank.

The resurgence of the US dollar in recent months has boosted Asian currencies in particular. UAE Exchange has seen “a good flow of money” to India, Pakistan and the Philippines, as well as Egypt and elsewhere.

“Over the last year and a half there has been an increased amount of remittance activity worldwide and we are seeing that reflected in our business with substantial, double-digit growth overall,” UAE Exchange chief executive Promoth Manghat told The National.

Its remittances are expected to grow by 8 per cent to 10 per cent year-on-year in 2018, he said. “People are taking advantage of improved economic sentiment and the last three months in the UAE have been especially positive,” Mr Manghat said.

He said the government’s plans to relax foreign ownership rules and offer long-term visas to some residents by the end of this year would “create new jobs in emerging industry sectors, resulting in increased economic activity and higher remittance flows”. Rising liquidity in the GCC would also boost remittance volumes, he said.

UAE Exchange, which was founded in 1980 by India-born businessman BR Shetty, operates in 45 markets worldwide.

It is a private company and does not break down volumes by region.

In 2016, the company launched a $250 million to $300m acquisition spree to boost its technology and logistics capabilities. It has spent 40 per cent to 45 per cent of its investment pot to date and is in advanced talks with three companies on deals to be complete d this year, Mr Manghat told The National.

Previous acquisitions include exchange house Remit2India and US blockchain company Ripple, and early-stage investments in technology start-ups Swych and the UAE’s Souqalmal.

In 2015, the company bought UK exchange house Travelex for $1.1bn. “We’ve been doing organic investments in technology firms and will continue to do so, focusing on opportunities to enhance our capacity and better serve our customers,” Mr Manghat said.

“We are gaining good momentum.”

Acquisitions will be overseen by UAE Exchange’s new holding company, Finablr, set up by Mr Shetty in April this year to house all of his financial services interests, which include UAE Exchange, Travelex, Xpress Money, Remit2India, Unimoni and Ditto.