RemittancesGateway.org

Remittances from UAE beats global financial crisis, grow 15% in 2009

Monday, 12 April 2010 11:59

Remittances sent home by expatriates from the UAE recorded around 15 per cent growth in 2009 despite the global financial crisis, Al Ansari Exchange Chairman Mohamed Al Ansari said.

"Remittances are estimated at $15 billion in 2009, but the correct figure could be approximately $20 billion after gathering the complete data," Al Ansari told Khaleej Times on Monday on the sidelines of a seminar titled "Money Transfers Middle East & North Africa."

Indians maintained their leading position among the expatriates in the country for sending money back home during last year while Egypt ranked first among the Middle Eastern countries, 
he said.

Al Ansari, who is also chairman of the Foreign Exchange and Remittance Group, an association of the exchange companies in UAE, believes that 2010 will be flat in terms of growth in remittances from the UAE.

GCC remittances outbeat predictions and remained slightly lower in 2009. Global growth of remittances is estimated at around 8 per cent to $317 billion last year, while Gulf countries are expected to record 15 per cent growth. Remittances from Gulf countries jumped by 31 per cent to $40 billion in 2008 compared to $30.3 billion in 2007.

The six-nation Gulf countries are home to approximately 12 million expatriates while in the UAE they account for around 80 per cent of the total population. Around 110 exchange companies are operating in the country with over 550 branches. The UAE records over 2.5 million remittance transactions 
per month.

Earlier at the seminar Al Ansari said: "Quick implementation of innovative products will help sustain exchange companies'" adding that exchange companies should focus on improved services to attract customers.

Regarding unofficial money transfers, he said that remittances through official channels are growing because of the quality of service and bulk of remittances are being send through banks and exchange companies.

Appreciating the newly introduced Wages Protection System (WPS), he said that it has increased his company's client base by double-digit. Al Ansari Exchange, which has 90 branches across the UAE, has installed 20 ATM machines dedicated to the WPS salary withdrawal purpose.

WPS was among the main issues discussed at the seminar, which was implemented a year ago. Mohsin Ali Saeed Al Nasi, Director of Inspection Department in Abu Dhabi and Director of WPS Office, highlighted the importance of WPS. Other speakers included Massimo Cirasino, Head of the Payment System Development Group, The World Bank; and Leon Isaacs, Managing Director, International Association of Money Transfer Networks (IAMTN).

Organised by the London-based IAMTN, for the third year in a row, the event focused on helping businesses succeed in today's highly competitive 
environment.

The conference addressed the impact of the economic crisis on the money transfer industry, the aftershocks and the new challenges faced by the Middle East market.

IAMTN Managing Director Leon Isaacs said, "The GCC region has over 12 million expatriates and is the second largest source of private financial transfers, after only the US. While there has been a slight decline in the remittance business in the last year, which was mainly driven by many expatriates returning to their native countries, we are anticipating a perceptible improvement in the remittance business in 2010. This conference provides a platform to discuss regulatory issues and the latest business developments in money transfers through a panel discussion, which presents excellent insights to those who will attend."

Souren Ayriyan, President and CEO of Unistream, the largest money transfer company based in Russia, said that he is considering to establish its own company in the UAE as the Gulf region provides tremendous opportunities. Unistream already has four partners in the UAE, Ayriyan said.