The UAE is home to millions of foreign workers. They make up the majority of the country’s 9.27 million population, and a large number are from Asia and non-Arab nations. These expats regularly transfer money back home, mainly to support family and friends, and the level of remittances is growing.
According to the latest quarterly economic review from the UAE Central Bank, expat workers transferred Dh44.4 billion to their home countries between April and June 2018, an increase of 8.8% compared with the same period last year. The bank data also reveals that the top three countries for remittances are India (39.6% or Dh17.6 billion), followed by Pakistan (8.5% or approximately Dh3.8 billion) and the Philippines (7.1% or approximately Dh3.2 billion). India has the most remittances because of the huge number of Indians in the UAE population.
The reason for the recent growth is the strong US dollar, which enables expats to take advantage of a favorable exchange rate to send more in dirhams back to their home countries. Because the UAE dirham is pegged to the dollar, it remains strong relative to other currencies, particularly in South Asian countries. Fluctuations in the Pakistan rupee and Philippine peso have certainly contributed to the hike in remittances from the UAE in the first half of the year, while there has also been an upsurge in economic activity in the UAE which has led to improved work opportunities for expats.
The best ways to transfer money
Foreign exchange(FX) outlets processed 78% of remittance transactions during this period, with banks accounting for 22% of money transfers. Customers prefer to remit money via foreign exchange outlets as they receive competitive rates and pay a lower transfer fee for the funds remitted. One of the best ways to send funds is to use an instant money transfer company such as Xpress Money, which helps to minimize charges and will ensure that more of your money is received in India, Pakistan or the Philippines. For the best exchange rates, see Xpress Money’s rate calculator.
Convenience as well as cost saving
With Xpress Money, you have the convenience of sending money in one of several ways according to your needs. For example, you can use cash pick-up. The sender will drop the cash at one of many partner locations spread across the UAE, and the recipient will pick it up locally from an equally extensive network of agent partners . The IMTO has 60,000 agent partners in India, 10,000 in Pakistan, and 15,000 in the Philippines. In addition to Cash to Cash service, the brand offers Account Credit service in Pakistan. OFW customers can send money to their bank accounts, mobile wallets, as well as receive money in cash in the Philippines.
Remittances growing globally
According to the World Bank’s Migration and Remittances Brief, global remittances are expected to rise 4.6 per cent to $642 billion by the end of 2018. Remittances to low and middle-income countries, which include India, Pakistan and the Philippines, are expected to grow by 4.1% to reach $485 billion. All the more reason to let Xpress Money help you transfer money cost effectively and conveniently from the UAE.