UAE: Global remittances rise to USD613bn in 2017 as global recovery accelerates

According to the World Bank data, global remittances grew by 7% year-on-year in 2017 as economic growth in Europe, the USA and Russia improved. However, while volumes grew substantially, the costs of sending money remain high, with sending $200 costing on average 7.1% in 2018, much higher than the 3% target set by World Bank.

Dilip Ratha, one of the authors of the report, said that “while remittances are growing, countries, institutions and development agencies must continue to chip away at high costs of remitting so that families receive more of the money. Eliminating exclusivity contracts to improve market competition and introducing more efficient technology are high priority issues.”

India was the largest recipient of funds, with $69bn flowing into the country, followed by China where remittances reached $64bn. The large Indian diaspora in the UAE has been ranked as one of the top sources of remittances to India, making remittances in the UAE a lucrative market.

According to RFi Group’s data, 3 in 10 banked consumers in the UAE transferred funds internationally in the last 12 months, with this proportion rising to 2 in 5 among Expat Asians. Financial considerations, such as the exchange rate and transaction fees, are the most important factors when transferring funds internationally, followed by the speed of transfer.

Upcoming Events
26
Feb
20
New Zealand Banking Innovation Awards
Auckland, Auckland, New Zealand
26
Feb
20
Australian Mortgage Innovation Summit 2020
The Rocks, NSW, Australia
26
Feb
20
Australian Lending Awards 2020
The Rocks, NSW, Australia
See all upcoming events
map4
Subscribe to receive insights delivered straight to your inbox
Latest news, unbiased expert analysis and insights across banking and finance