Remittances out of the UAE may increase 3% in 2019

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UAE reports budget surplus

Abdul Basit

Remittances from the UAE are expected to grow 3 per cent, or Dh5 billion, in 2019, Al Ansari Exchange General Manager Rashed A. Al Ansari told The UAE News during an interview.

Mr. Al Ansari expects the same growth level for his own exchange company in terms of remittances this year.

“Last year we had a 3 per cent increase in the volume of remittance out of the UAE and that I think it is an indication of how positive was the economy. This year again, as per my expectations, we see 2-3 per cent growth compared to 2018, and I think this is again an indication that the economy is still moving positively mainly attributed to the new projects we are seeing developing here and the Expo 2020 Dubai,” Al Ansari told this scribe at the Summer Promotion 2019 draw, which was held on Tuesday in Dubai.

Rashed A. Al Ansari

A Bangladeshi expat walked away with a whopping Dh1 million after winning in the Al Ansari Exchange Rewards. Abdullah Al Arafat Mohammed Mohsin, 30, from Sonagazi City in the Feni District of Chittagong, Bangladesh, bested eight other finalists – two Emiratis, two Filipinos, one Indian, one Pakistani, one Indonesian and another Bangladeshi – for the grand prize. The eight other finalists went home with Dh10,000 each.

In 2018, remittances from the UAE grew three per cent or Dh4.8 billion to Dh169.2 billion in 2018, as compared to Dh164.4 billion in the previous year with more residents remitting money through exchange houses than banking channels.
According to the UAE Central Bank’s 2018 annual report released in May 2019, the outward personal remittances that were settled through the banks decreased from Dh42.7 billion in 2017 to Dh40.3 billion in 2018, declining by 5.6 per cent or Dh2.4 billion. Meanwhile, remittances sent through the exchange houses totalled Dh128.9 billion, an increase of six per cent or Dh7.3 billion when compared to 2017.

India continued to remain the top destination for remittances due to depreciation in rupee’s value against dirham and a large number of non-resident Indians working in the Emirates.

Indian nationals accounted for 27.5 per cent of the UAE’s population and 38.1 per cent of total remittance outflows. The next five most important countries in the share of outflows of personal remittances were Pakistan (9.5 per cent or Dh16 billion), Philippines (7.2 per cent or Dh12.2 billion), Egypt (5.3 per cent or Dh9 billion), and the USA (3.9 per cent or Dh6.6 billion).

A World Bank report in April had said that India retained its position as the world’s top recipient of remittances with overseas Indians sending a whopping $79 billion back home in 2018. Global remittances, which include flows to high-income countries, reached $689 billion in 2018, up from $633 billion in 2017. – abdulbasit@theuaenews.com