Expat Remittances From The UAE Exceed $21bn In First Half Of 2020

Expat remittances from the UAE amounted to AED79.6 billion ($21.6 billion) in the first half of 2020 with India the top receiving country, according to new figures.

Data from the Central Bank of the United Arab Emirates showed that H1 remittances accounted for 48.2 percent of the total money transferred by foreign residents in the country during 2019, which totalled AED165 billion.

Could Gulf remittances increase after Indian rupee hits downward spiral?

NRI remittances to India, especially from the Gulf region, normally see a spurt whenever rupee value plunges against the US dollar

The central bank said it saw the transfer of AED41.4 billion during the first quarter of this year while AED38.2 billion was remitted between April and June, with 76 percent of the total transferred via money exchange companies operating in the country and the rest through banks.

The figures also showed that India was the top receiving country for earnings made by expats, followed by the Philippines, Pakistan, Bangladesh, Egypt, and the US.

Earlier this month, we reported how remittances to India from the Gulf region were booming despite the economic turmoil imposed by the coronavirus, with many Indian banks reporting growth of up to 20 percent.

The rise in NRI (non-resident Indian) remittances during April-July from the Gulf region, were said to be propelled by the twin factors of a plunge in rupee value and expat Indians rushing to move part of their savings home in the wake of uncertainty related to the global pandemic.

And bankers in India said they expect a further jump in NRI remittances on account of annual bonuses and leave encashment payments made to expat employees by companies and establishments in several GCC countries during the August-September period.

The rising trend has debunked widespread fears among economists and policy makers about a drastic fall in the inflow of remittances in the wake of widespread salary cuts and job losses of expat Indians working in Middle East countries.

Remittances in India decreased to $14.89 billion in the first quarter of 2020 from $15.18 billion in Q4 2019

A World Bank report in April also projected a 23 percent fall in remittances to India this year to $64 billion from the $83 billion in 2019.

Remittances in India decreased to $14.89 billion in the first quarter of 2020 from $15.18 billion in Q4 2019, according to data put out by Trading Economics, an international agency that tracks major economic indicators of 196 countries.

The UAE topped the list of NRI remittances to India last year, followed by the US, Saudi Arabia and Kuwait.