Economy

‘Expats in UAE remitted $10.6 b during 2010’

PTI Dubai | Updated on May 11, 2011 Published on May 11, 2011

The UAE’s expatriate employees remitted 11 per cent more dirhams in 2010 that they did in 2009, official data has revealed.

According to the Central Bank of UAE’s annual report, employees’ transfers abroad (remittances) increased from $9.5 billion (35 billion dirhams) in 2009 to $10.5 billion (38.8 billion dirhams) in 2010, an increase of 10.8 per cent.

According to a news report quoting UAE Central Bank figures, one reason for the growth in outward remittances during a year that saw continued uncertainty amid job losses and no noteworthy salary hikes for employees in the country could be the slide of the US dollar, to which the dirham is pegged.

A decline in the dollar against one’s target currency means that one would have to send more dirhams to remit the same amount of home currency.

While the US dollar fell 7.2 per cent against the New Zealand dollar, a massive 14.7 per cent against the Japanese yen and 14.1 per cent against the Aussie dollar during 2010, it also fell a more modest 4.3 per cent against the Indian rupee and 6 per cent against the Philippines peso, arguably the two biggest receivers of UAE remittances, the Emirates 24/7 report said.

India is the largest recipient of remittances in the world, receiving $49 billion annually and $ 6.2 billion, or 12 per cent of that amount, comes from the UAE, a Standard Chartered Bank report said last month.

The flow of funds from the UAE to India is one of the most important corridors of funds flowing into India.

According to a MasterCard report, the booming global remittances market provides banks with an opportunity to capitalise on their strengths in global payments and harness new banking products and technology.

“By leveraging Internet service and distribution capabilities, the low-cost infrastructure afforded by reloadable prepaid cards and mobile technologies, as well as their access to superior foreign exchange rates, banks can gain share,” it added.

Published on May 11, 2011
This article is closed for comments.
Please Email the Editor