UAE foreign workers top $10bn in remittances

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MONEY MATTERS: The UAE is predicted to drive future growth in the remittance sector, according to Money Transfer International.

Foreign workers in the UAE transfer more than $10 billion (AED36.75bn) per annum to their home markets making it the third highest performer in the world in fund remittance, according to a new report.

The Money Transfer International (MTI), the global trade association, predicts that the GCC has the potential to drive growth in the remittance sector even though the global economy is in slowdown.

Premal Patel, MTI's regional director said: "The GCC region is one of the top five performers of the global remittance industry which is pegged at $550 billion in 2008."

He said that according to recent estimates from the IMF (International Monetary Fund) the remittance volume in UAE is expected to lead the increase, and will be up by five percent this year.

"The UAE is set to play a crucial role in remittance sector growth. During March 2009 alone, the volume of remittance from the UAE to Pakistan topped $174 million.

"Looking further east, more than 40 percent of all overseas Filipino workers (OFWs) are based in the Middle East and 10.5 percent live and work in the UAE. Remittances to the Philippines from the UAE reached more than $584 million in 2008."

According to MTI data, Saudi Arabia, UAE and Kuwait are the GCC's best performers, with UAE slated as the third largest sender of remittances, worldwide.

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READERS' COMMENTS

UAE foreign workers top $10bn in remittances
Posted by ajoy, jalgaon, india on Wednesday 3 June 2009 at 07:37 UAE time


What a dilemma!!!, When people send money to home , seeing their bleak future here, questions are raised ...they donot spend money here. When the they try to invest here, no facility is granted to the investor. Tell me gentlement,what is the best way to secure one's life being here!!!!!!!!!

This is what happens when you pay low wages
Posted by Doug on Tuesday 2 June 2009 at 16:06 UAE time


The problem is that the vast majority of people sending money home earn very, very little. They are certainly not earning enough to have a viable disposable income within the UAE. The money they are sending home couldn't ever be used to buy cars, or put down a deposit on an apartment, or purchase some electronic item.

If companies here paid these workers more, they might perhaps actually spend more within the UAE. But the is that they don't, so what little these people do earn goes straight home.

And of course, that still benefits the UAE because someone in this country will still charge you to remit your cash back home anyway.

That is $10b that doesn't stay in the economy
Posted by Geriant, Dubai, UAE on Tuesday 2 June 2009 at 14:50 UAE time

There should be no pride that the UAE migrant labourers, some in suits, remit so much to their home markets. The remittance industry contributes nothing to the countries it operates in, and fleeces as much as it facilitates. Ask any South Asian or Pinoy what they think of the remittance folks, and you will hear a different tone entirely from this upbeat drivel above.

Great News
Posted by Zia, Ajman, UAE on Tuesday 2 June 2009 at 12:44 UAE time


After reading this article now i understand why the rents are sky rocketing for both commercial and residential properties. They want to keep the UAE money in UAE only..so free hands to landlords to charge as much as possible.

Way to go guys and great thinking....

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