UAE Remittance Market to Embellish Via Affirmative Economic Changes: Ken Research

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UAE Remittance Market to Embellish Via
Affirmative Economic Changes Ken Research
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A remittance usually refers to the fund transfers
which an expatriate does in order to send money
to his/her country of origin either via wire,
mail, or online transfer. Such peer-to-peer
transfers of funds across the borders have proved
to be economically notable for many countries
across the globe. In UAE, the international
remittances are generally carried out through
exchange houses and banks. UAE is regarded as a
leading cosmopolitan hub in the world since it
offers a wide range of job opportunities,
ultimately being a major attraction for the job
seekers especially in other South Asian
countries. According to UAE Market Research
Reports for Remittance, the population of this
country has been witnessed to include a majority
of expatriates and consequently, UAE has relished
a rapid economic growth over the years, due to
its strong labor force, mainly composed of
expatriates.
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UAE Remittance market functions via international
as well as domestic remittances which are usually
represented by workers remittance outflow,
business to business and personal remittances.
The expatriates in this country have played a
significant role over the years and thereby have
reckoned to be amongst the key contributors to
international remittance market, wherein the
revenue trends have ameliorated at tremendous
growth rates, if considered from 2011 to 2016.
As per the UAE Remittance Industry Research
Report, this industry has showcased a healthy
growth till now majorly owing to optimistic
factors like booming number of expatriates in
the country amplifying infrastructure and
developmental activities and mushrooming
business sectors. On a whole, the technological
transition resulted in electronic mode of
transfer to supersede the market accounting for
a major share in the workers remittance outflow.
Thus, during 2016, direct credit to bank account
along with the advent of online services well
dominated this market.
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It has been well investigated with the help of
UAE Remittance Market Research Reports that the
international remittance market has long been a
highly competitive market where the exchange
houses often compete on the basis of number of
transactions, volume of transactions, number of
branches, services offered and many other related
factors. Furthermore, the exchange houses that
are prominent in UAE at present include UAE
Exchange, Al Ansari Exchange, Al Fardan Exchange,
and Sharaf Exchange. On a proper scrutiny of the
most recent trends given by UAE Remittance
Industry Analysis, it has been observed that the
launch of crypto-currencies such as Bitcoin and
Ethereum is resulting in a huge impact on the
remittance industry worldwide since these latest
currencies possess the potential to engender
decentralization of money issuing and financial
services ultimately creating a tech savvy
industry that will go hand in hand with the
upcoming technological innovations.
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Taking the UAE in consideration, it has been
discovered that these crypto-currencies lately
need to come up with proper future planning that
will aid in overcoming various hurdles such that
they are able to successfully compete against
banking and exchange house remittance offers
since, even if these offers are expensive and
inconvenient but they still offer some great
advantages to the consumers, be it the
possibility to transfer to bank accounts, to
m-wallets or to beneficiaries for cash pick-up.
Therefore, the entrepreneurs addressing this
market via crypto-currencies will have to
overcome the road blocks including financial
inclusion, internet access and technological
literacy lack of awareness of user friendly
ecosystem provided liquidity issues and lastly
the AML and CFT controls (such that a reliable
system is generated to detect money laundering
and terrorism financing cases).
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However, as per the UAE Remittance Industry
Research Report, firms have been witnessed as
replacing their current money remitters and as a
result, the traditional way of carrying out
remittances is being replaced by this new one
which is less complicated, in real-time, less
expensive, inclusive and user-friendly.
Basically, the money remitters and exchange
houses involved in this industry have the
required assets, the market share, the know-how
and the ecosystem built but it has been analyzed
that if re-engineering of their businesses does
not take place in the years to come, they will
lose the battle. Thus, the firms which are smart
enough to realize the need for changes and do not
hesitate in seeking advices are the ones which
are expected to enjoy better chances towards a
holistic progress. Cumulatively, both the UAE
remittance as well as bill payments market have
witnessed a considerable growth in the recent
past and are envisioned to grow at a decent CAGR
by 2021. With context to the Future Insights for
UAE Remittances Market, the overall market is
projected to burgeon and register massive
revenues in future owing to factors such as
amplifying employment opportunities due to
infrastructure developmental activities linked to
the World Expo to take place in 2020 in Dubai
expansion of airports and the Etihad rail, air
and marine transport systems and road networks in
the country internal migration development of
non-oil private sector businesses, and surging
utility prices.
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