A recent survey predicts that international money transfers from the UAE will rise in 2019 as more citizens of the nation plan to send money abroad in the coming year.
Nearly 8 out of 10 (76%) UAE consumers polled by Western Union said they expect to transfer more funds over the next year. Incoming money transfers are likely to pick up as well, with 75% of respondents saying they expect to collect even more funds over the same period.
Western Union’s study included 1,000 UAE residents who send and receive money across borders. The study seeks to explore consumer sentiment on how, when and why customers move money. Remittances are a part of life for most residents in the UAE, which is home to more than 200 nationalities and considered one of the world’s top destinations for expatriates.
Funds transferred from foreign sources are also a vital source of income for many households worldwide, especially those in low-and-middle-income countries (LMICs). So far this year, around $626 billion of funds have been transferred to LMICs, up by 5%, the World Bank reported in November.
The majority of senders in the UAE (60%) said they move funds to provide financial support for their families. Only a small portion of senders (11%) said they transfer money to “save for the future.” Inflation is also driving customers to send more funds overseas. Around 74% said that because of higher cost of living in the country they send money to, they need to transfer more funds.
Many customers (71%) also take advantage of favourable exchange rates, so they tend to move more money when the currency value falls in their receiving country. “To remit is often a very personal decision. Western Union data also supports that one of the most common reasons why consumers remit is to support loved ones and family,” said Jean Claude Farah, President of Middle East and Asia Pacific at Western Union. “So, it is only natural that, as the global economic climate challenges affordable ways of living, family support takes precedence over everything else as senders move money.”
