Remittances from Gulf hit Dh213b

Dubai: Outward remittances from the Gulf reached Dh213.15 billion or 24 per cent of the Dh888.14 billion global remittance flow, said a top government official.

Emirates Post Corporation (EPC), which two months ago entered the financial services business by acquiring a 60 per cent stake in the Wall Street Exchange Centre, will expand the latter's network of eight branches to 70 in two years.

The government-owned EPC said, it will become one of the top players in the international remittance business.

"We are planning to expand Wall Street Exchange Centre's local and international presence," said Abdullah Al Daboos, EPC's director-general.

"Internationally, our big-gest expansion will be in the Subcontinent, Thailand, Hong Kong and the Philippines, while locally, we will increase the number of outlets to 70 from the existing eight in two years time."

In 2004, migrant workers' remittances were estimated at $182 billion, according to a World Bank report. Of this, developing countries received an estimated $126 billion, up by nearly 48.7 per cent from 2001.

India is the world's top recipient of remittances. Growth in money sent home by its migrant workers has been dramatic in recent years, touching $17.4 billion in 2003, up from almost $14 billion in 2002, and over $11 billion in 2001.

"In the oil exporting Gulf states, foreign workers continue to represent more than half the labour force. In Saudi Arabia, expatriate workers account for 70 per cent of the work force," the World Bank said.

"Unlike other capital flows, remittances are stable and directly benefit the poor. In the wake of the Asian financial crisis in the late 1990s, remittances to developing countries continued to rise even though FDI and official aid flows declined."

With $14.9 billion, Saudi Arabia is the world's second largest source of remittances after the US, which leads with $34.1 billion.

"With migration set to rise in the coming years as a result of globalisation, remittances can be expected to grow steadily well into the foreseeable future. Therefore, both remitting and recipient countries are considering the long-term economic implications of these transfers," the report said.

Remittances from the UAE are set to grow faster than average due to the increase in the number of foreign workers.

"Last year, we recorded 22 per cent growth in remittances which reached Dh10.64 billion ($2.9 billion)," said Sudhir Kumar Shetty, chief operating officer and general manager of UAE Exchange Centre LLC.

"About 82 per cent of this goes to the Indian subcontinent, the Philippines and Indonesia.

"With the growth in the UAE's construction sector and the recruitment of foreign workers, we see further growth in remittance flows this year as well."