Oman remittances to see an estimated increase of 35% in next three years
~ Over 30% of Omani population constitutes migrant population of Oman in 2013~
Muscat, April, 2014: The share of remittances from Middle East to developing countries is expected to rise significantly over the next three years according to Xpress Money, the world’s most dependable money transfer brand
Highlighting the significance of the Middle East, particularly the GCC which accounts for over US 80 billion remittances to the developing world, Xpress Money said the annual average remittance growth from the Middle East is expected to stay in the range of 10-12 per cent for the next three years.
The statement was made in the context of the release of the latest report from the World Bank on migration and remittances, which forecast that growth in remittance flows to developing countries is expected to accelerate to an annual average of 8.4 percent over the next three years, raising the money flows to $436 billion in 2014 and $516 billion in 2016. Remittances to developing countries were estimated at $404 billion in 2013, close to 4 percent rise compared to 2012.
Mr. Sudhesh Giriyan, Vice President and Business Head, Xpress Money said: “Most of the outward remittances from the Middle East are from GCC countries and we have been seeing a robust pick up in the remittance flows as the economies in the region have regained confidence. Also, with global events such as the World Expo 2020 in Dubai and the FIFA World Cup 2022 coming up in Qatar, a plethora of jobs and employment opportunities have opened up which will further attract expatriates and migrant workers. This will significantly impact the remittances going out from these regions, helping the GCC become an even more dominant region in the global remittance scenario.”
“Remittance costs in the GCC are amongst the lowest in the world when compared to other countries, such as many African nations, where the need to address the issue of high cost of remittances is imperative. In markets where exclusivity is an issue, there is stifling of competition which in turn has a negative impact on remittance costs. In GCC, one of the early adopters of non-exclusivity is Oman which has in turn given customers a variety of options to choose from. We understand that other markets in the Middle East are also reviewing their stance on exclusivity,” Mr. Giriyan said.
Mr. Giriyan further said that the average cost of making remittances from G20 countries to the rest of the world fell to 8.4 percent in the first quarter of 2014. With the end of the 5-year period of the “5x5 Objective” approaching, intensified efforts are needed to lower the costs of remittances. If regulatory bodies, financial institutions and governments together work towards realizing the full potential and contribution of remittances towards developing economies, a level playing field can be created by doing away with the exclusivity issue which deprives customers of multiple product options.
Xpress Money has pioneered new standards in money transfer services since its establishment in 1999. It offers a bouquet of services to address varied customer demands in both evolved and evolving remittance markets. Amongst its product offerings are options to send money in cash, to bank accounts, to a mobile, and now even on to a card. Xpress Money constantly innovates to bring more value for money remittance products for the growing expatriate community across the world.
About Xpress Money:
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