UAE Exchange sees 6% year on year growth in its remittance transactions to the Arab corridor in Quarter 1 of 2016

2016 World Bank Group Report highlights GCC as Key Hub for Outward Remittances 

Company announces rise in remittance transactions to Egypt and Jordan through its network by 14.4% and 13.5% respectively in Q1 2016 compared to the same period last year

Dubai, UAE, April 30, 2016:  The World Bank Group’s Migration and Development April 2016 Report has positioned the GCC as a global hub of outward remittances, particularly to non-GCC Arab countries. The report, which highlights the movement of people as well as remittance flows, presents data that dovetails with internal research of UAE Exchange, the leading global remittance, foreign exchange and payment solutions brand.

“We are very pleased that the 2016 World Bank Group Report supports our assertion that, despite market fluctuations, remittance corridors from the GCC to the rest of the world remain robust. This underpins the GCC as a region with strong, functioning and expanding economies that attract talent and manpower from world over, especially the Arab region.” said Promoth Manghat, CEO, UAE Exchange. 

“What we’re seeing is that the GCC remains a key hub for remittance outflows to other Arab countries. The World Bank Migration and Development Report coincides with our internal research, which shows that remittance corridors remain steady even in the face of market challenges and the socio-political landscape in the Arab world. Our year-on-year remittance transactions to the Arab markets have grown by 6% in Q1 2016. The conclusion is that the GCC is very much the de facto destination for expatriate workers to come, live, save and remit due to sound government policies and robust economies.” adds Promoth.

The World Bank Group Report notes that despite economic pressures, remittance outflows from oil exporting GCC countries continued to rise in 2015 due to maintenance of fiscal spending, and the peg to a strong USD by most economies in the GCC. Several positive initiatives and investments being undertaken in the GCC region, like the EXPO 2020 in the UAE, FIFA World Cup in Qatar etc., contribute to driving diversified economies with optimism.

The report states that remittances from the GCC to other Arab countries remained strong, with Egypt, Jordan and Yemen featuring among the leading remittance receivers. Commenting on the trend, Promoth notes, “We’ve been aware of the importance of the GCC to Egypt and Jordan corridors for a while.

These countries are among the largest receivers of remittances from the GCC, and we’ve seen a rise in our remittance transactions to Egypt and Jordan by 14.4% and 13.5% respectively in Q1 2016 compared to the same period last year. It’s worth noting that Egypt receives three times the revenue generated by the Suez Canal from global inward remittances.”

According to the World Bank Group Report, global remittance flows to Middle East and North Africa stood at an estimated USD 50.3 billion. The figure is expected to rise to USD 51.6 billion in 2016, and hit USD 54.5 billion in 2018. The GCC is expected to continue playing a key role in this increase.