UAE remittances down 7.3% in Q2

The central bank forecast the growth rate of remittances would decrease this year



The total value of remittances by foreign workers in the UAE decreased 7.3 per cent year-on-year in the second quarter, according to the UAE Central Bank.

Remittance flows during the quarter stood at Dhs40.8bn ($11.1bn) from Dhs44.1bn ($12bn) during the same period last year.

This was despite a 10 per cent increase in remittance flows from the first quarter to the second from Dhs37.1bn ($10.1bn) to Dhs40.8bn.

The bank said the decrease in outflows could be attributed to a slowdown in economic activity and the recent depreciation of the dirham during the quarter.

It forecast that the growth rate of outward remittances would decrease this year.

Total flows reached Dhs77.9bn ($21.2bn) in the first half of 2017, representing 48.5 per cent of the Dhs160.8bn ($43.7bn) of remittances last year, the bank said.

Bank data showed 77 per cent of total remittances, or Dhs31.4bn, was transferred through money exchange companies and 23 per cent, or Dhs9.4bn, was transferred through banks.

Indians were the most active nationality, accounting for 35.9 per cent, or Dhs14.64bn, of remittances during the second quarter.

They were followed by Pakistanis, who accounted for 9.6 per cent (Dhs3.91bn), Filipinos at 7.1 per cent (Dhs2.9bn) and Egyptians at 5.2 per cent (Dhs2.12bn).

British workers accounted for Dhs1.7bn, Bangladeshi and American workers Dhs1.63bn, Jamaicans Dhs1.2bn and Swiss and Lebanese workers Dhs775m.

Overall Asian workers made up 56.3 per cent of total remittances, or Dhs23bn despite accounting for 82 per cent of the population.