Humans are resilient. There are countless examples from history, both near and far back, that emphasize on the universal truth about humans rising from the darkest of challenges. In recent times, Egypt is one such example. In 2011, the country faced a political uprising, which left the country with economic instability for years to follow. Finally, with a reforms-oriented government and an economic reform policy in place, the economy is recovering. Egypt set itself on an ambitious economic reform plan shortly after President Abdel-Fattah al-Sisi was appointed in 2014. The government has cut down subsidies, imposed a value-added tax and allowed currency devaluation to qualify for a $12bn bailout loan from the International Monetary Fund.
However, apart from government reforms, the economy is also being promoted by a group of people, who have historically been instrumental in Egypt’s progress – Egyptian Expats. Over 9.5 million Egyptians live and work outside Egypt in countries like Saudi Arabia, UAE, USA, and Libya, among others. Remittances sent from Egyptians abroad play a key role in the country’s economy. In fact, remittances are the second most important driver of the contraction of Egypt’s current account deficit, after tourism. In recent times, after the devaluation of the Egyptian Pound, there has been a spike of 19.2% in 2017 in remittances to Egypt. Remittances are one of the main sources of foreign currency in the country.
Remittances inflow in Egypt has far reaching impacts for a country on its road to recovery. For Egypt, remittances are not just stable source of foreign exchange that ease the foreign exchange constraints and help to finance external debts; they also serve as a potential source of savings and investment for capital formation and development; facilitate investment in children’s education and human capital formation; raise standard of living of recipients through increasing consumption; and reduce income inequality and poverty.
Ever since the Central Bank of Egypt’s devaluation of the pound came into effect, more and more Egyptians around the world have turned to legal channels of sending money. In UAE, which is home to over 857,000 Egyptian expats, Xpress Money has emerged as one of the most preferred way to send money to Egypt; and with the aim of boosting remittances to the country, the company offers the lowest transfer fees, amongst international money transfer companies, starting at AED 15 for remittances from the UAE to Egypt. Egyptian expats in the UAE also get better exchange rates on their money transfers. Even in other countries with large number of Egyptian expats, Xpress Money offers competitive rates and transfer fees. The brand is proud to be instrumental in Egypt’s journey of resurgence.