UAE is well-known as a leading cosmopolitan hub in the world with wide range of job opportunities, due to which it has been a major attraction for job seekers in other South Asian countries. Population of the country majorly constitute of expatriates. Over the past decade UAE has experienced a robust economic growth owing to a strong labor force, composed mainly of expatriates. The expatriates in the country are the major contributors to the international remittance market in the country. Money Transfer UAE ,Exchange House Money Transfer in UAE, United Arab Emirates Domestic Migration, Outbound Money Transfer in UAE, Sharaf Exchange Remittance in UAE, Trriple Money Transfer Volume in UAE, Top Recipient of UAE Remittance, UAE Expat Remittance,.
UAE Remittance Statistics, On the grounds of this, the market has recorded an amplified growth in the overall revenue from USD ~ Billion in 2011 to USD ~ Billion in 2016. International remittance market is dominated by the workers remittance outflow over the inflows.
Though, UAE is known for its international remittances, the domestic remittances are also huge in the country. It is dominated by the business to business remittances over personal remittances owing to the rising business activities.
Though there had been a decline in the growth rate during 2014-2015 due to the falling oil prices, the domestic remittance market have picked up soon due to rising business activities in the non-oil private sectors. The personal remittances are also rising year on year owing to the internal migration. Like all developing nations, UAE also comprise of both developed and non-developed emirates, which raises the rate of internal migration from non-developed emirate to developed emirate in search of better job and living opportunities.
During the review period 2011-2016, the bill payments market has also displayed a tremendous growth owing to the increased consumption of electricity, water, mobile phones, internet and others. As to reduce the rate of consumption, the government had increased the prices of electricity and water in the emirates like Abu Dhabi and Dubai from 2015, augmenting the bill payments market.
Which Channel Of Remittance Is Preffered The Most?
UAE international and domestic remittance market prefers different remittance channels.
International remittance market is dominated by the exchange houses over banks. It accounted for a share of ~% in terms of workers remittance outflow in 2016. Major factor leading to the dominance of exchange houses in the country is the high rate of unbanked population. International remittance is led by the expatriate population and the expatriates have bank accounts in their home countries. They do not prefer to open bank accounts in UAE since there are not much investment opportunities available for expatriates in UAE. Exchange houses in the country provide various offers and discounts to their customers. They offer cash pick up service to their customers, which enable them to conveniently transfer their money. The exchange houses use foreign exchange retailers such as Western Union, InstaCash, Xpress Money and others to ensure a quicker and faster transfer of funds from one country to another. Such foreign exchange retailers provide the facility of last minute cancellation with guaranteed refund including the transfer fee.
Banks hold a meager share of ~% in international remittance market. Though there is more number of banks than exchange houses in the country, majority of them are national banks. The national banks of UAE follow the Islamic law. The Islamic law does not have the concept of interest on deposits or loan. Hence, the expatriates do not prefer having a bank account in UAE. For remittances through bank one should have a bank account.
Domestic remittance market can be classified into business to business and personal remittances.
The remittance market in UAE including both international and domestic remittance market is dominated by direct credit to account and online services. It holds a share of ~% in the overall market. This service is convenient for the customers as they need not visit the branches for the making a transfer. Except for some GCC countries, the remittance to all other countries is made using direct credit to account and online service. This service includes less cost in comparison with other type of services and it does not include the effort of visiting the branches in person from both sending and receiving end.
It is followed by the cash pick up service that accounts for a share of ~% in the market. Cash pick up service is offered by both banks and exchange houses and is beneficial for the customers in rural areas in the recipient country. A drawback of the cash pick up service is that it is a time consuming process, as the sender has to approach the bank or exchange house in person and remit the amount at the counter. Risk of loss and theft are associated with the cash pick up facility. Prepaid cards come last in type of service used. It is beneficial for frequent travelers. They can reduce the inconvenience of carrying cash. It enables the withdrawal of money from any country in that country’s currency.
Topics Covered in The report
- Money Transfer Market UAE
- Exchange House Money Transfer in UAE
- United Arab Emirates Domestic Migration
- Outbound Money Transfer in UAE
- Sharaf Exchange Remittance in UAE
- Trriple Money Transfer Volume in UAE
- Top Recipient of UAE Remittance
- UAE Expat Remittance
- UAE Remittance Statistics
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Ankur Gupta, Head Marketing & Communications