Wall Street Exchange plans to acquire exchange houses in the GCC

Dubai

People in Dubai will soon be able to remit money to their nearest one through kiosks that operate 24X7, thanks to a new move by Wall Street Exchange LLC – a major money exchange house.

“We are currently testing the system which should be available across 350 kiosks for remittances next month. This would be the first of its kind service in the region,” Sultan Bin Kharsham, Managing Director of Wall Street Exchange LLC, told Gulf News. “The kiosks are already available in 350 locations across the country for other usages. However, our service will be the first financial service to customers through these kiosks.”

The move will enable expatriates to remit money in emergency even after the shutters of the exchange houses have closed.

Sultan Al Mahmoud, Wall Street Exchange’s Group Marketing Director, said customers will have to just create their settings after registration to avail the facility. “Then, every month, you just select the amount and the beneficiary and deposit the money through the kiosk, the money will be remitted,” he said.

The company is looking into management takeover or full acquisition of exchange houses in the GCC that will help it to penetrate the region in a bigger way. “We want to expand in other GCC markets where regulation is restricting our entry. We are, however, open to joint ventures, acquisitions and management takeover of the existing remittance houses that will help us to gain an easy access and help build upon the existing network of the companies,” Bin Kharsham said. “However, all depends on the opportunities and shareholder approval.”

The Dubai-based company was created and spearheaded by a non-resident Indian, Asghar Patel and was part of his business conglomerate, House of Patels. It was later fully acquired by Emirates Post.

The company, which has 26 branches in the UAE, five in Hong Kong, three in London, employs 450 people including 400 working in the UAE. It has a loyal customer base of more than 300,000 people and additionally, it serves a further 60,000 people under the government’s Wage Protection System (WPS) that helps disburse salary of workers who do not have a bank account.

The company is planning to add 50 branches across the UAE within the next three years. “We have recently raised our capital by Dh30 million that will be used for the expansion of our branch network. We are planning to add at least 50 new branches across the UAE including 30 to be located within the Emirates Post offices,” he said.

With the expansion, his company will add at least 350 new professionals on its payroll in the next three years.

Wall Street Exchange, which last year handled in excess of Dh84 billion in remittances, made a net profit of Dh65 million — a 25 per cent increase from the previous year’s results. “This year, we expect to make Dh70 million net profit,” Kharsham said. “Although we expect the results to be much better, however, a lot of our resources will be spend in the expansion which are to be self-funded.”

He said, the company has healthy cash flow and does not need to raise capital this year. The company also owns Instant Cash — an instant cash remittance provider like the Western Union — that has 60,000 agents globally.

The UAE is a major source of outward remittance due to high concentration of expatriate population. As a result, some money exchange houses are thriving while some are struggling due to management failure.

Although Wall Street Exchange’s branch network is about a fourth compared to the large two exchange houses — Al Ansari Exchange and UAE Exchange Centre — both with branch networks of more than 100 locations — Wall Street handles a large amount per annum.

“About 65 per cent of our business is wholesale. Every day, small exchange houses sell their bulk cash to us. Sometimes, we receive more than Dh100 million Saudi riyals in cash, for example — which most other exchange houses do not have the capacity to deal with,” Bin Kharsham said. “Although money exchange is a high-volume and low-margin business, we benefit with the high turnover and good service.”