why Uae expats are remitting more
Remittances outflows from the UAE has had a modest growth track as compared to the same period last year Adeeb Ahamed, MD, Lulu Financial Group
dubai — Outward money remittances from the UAE rose 1.1 per cent to hit Dh37.1 billion in the first quarter 2017, reflecting the robust resilience of the country’s economy and a stronger currency.
Latest information provided by the UAE Central Bank on Sunday shows that Indian expats top the list of remitters, sending a total of Dh12.95 billion, accounting for 34.9 per cent of total first quarter remittances, followed by Pakistani nationals claiming 9.4 per cent, and Filipinos 7.3 per cent.
Americans accounted for 5.4 per cent, followed by Egyptians at 4.95 per cent and Britons at 4.4 per cent, Central Bank data shows.
The central bank attributed the hike in remittances to a 2.2 per cent surge in the average value of dirham against other currencies comparatively with the same 2016 period.
Adeeb Ahamed, managing director, Lulu Financial Group, said remittances outflows from the UAE has had a modest growth track as compared to the same period last year.
“The growth is even more visible in the Asian corridor, including India, Pakistan, the Philippines, despite some Asian currencies strengthening over the past couple of months.”
Y. Sudhir Kumar Shetty, president, UAE Exchange, said infrastructure activity in the UAE has been on a high. The UAE has witnessed tremendous growth in non-oil sectors like tourism, trade, retail and infrastructure. The value of UAE projects, both Dubai and Abu Dhabi put together, saw a rise of 42.6 per cent in first quarter 2017.
“There was also a yearly increase in oil and power projects in the same period, led by Abu Dhabi. These developments reflected in the UAE’s remittances flow growth. This performance stands a testimony to the resilience of the UAE economy,” said Shetty.
Ahamed said the European corridor has showcased moderate growth due to fluctuating currencies and political situations, whereas the Asian markets have been quite bullish, despite the tough global market scenario and challenges.
“Transactions usually take a surge once we get closer to Ramadan as families look forward to sending
There was also a yearly increase in oil and power projects in the same period, led by abu dhabi. These developments reflected in the uae’s remittances flow growth
Y. Sudhir Kumar Shetty,
President of UAE Exchange
home money. With the addition of Ramadan remittances, we expect to put up a good performance this month in comparison to the previous months,” said Ahamed.
Up to 75 per cent of total remittances, amounting to Dh27.8 billion, were conducted through money exchange companies during the first quarter, a growth of 2.7
We are also seeing the benefits of the diversification efforts by the government translating into strong growth in the non-oil sectors with a robust outlook for 2017 Promoth Manghat,
CEO of UAE Exchange
per cent from the same period last year, while 25 per cent thereof was done through banks. “UAE Exchange has been an active participant in this growth journey exhibiting a robust performance right through,” said Shetty.
Promoth Manghat, CEO, UAE Exchange, said the resurgence of UAE outbound remittances in first quarter shows the strength of the economy. “We are also seeing the benefits of the diversification efforts by the government translating into strong growth in the non-oil sectors with a robust outlook for 2017.”
Overall UAE Exchange registered strong growth in Q1 2017 across our group entities transferring over 30 per cent of total outbound volumes from the UAE, said Manghat.
In 2016, the World Bank estimated that officially recorded remittances to developing countries amounted to $429 billion, a decline of 2.4 per cent over $440 billion in 2015. Global remittances, which include flows to high-income countries, contracted by 1.2 per cent to $575 billion in 2016, from $582 billion in 2015.
“Low oil prices and weak economic growth in the GCC countries and the Russian Federation are taking a toll on remittance flows to South Asia and Central Asia, while weak growth in Europe has reduced flows to North Africa and Sub-Saharan Africa,” the bank said.