Remittances by foreign workers in the United Arab Emirates are projected to grow by five to ten per cent in 2016, according to local money exchange industry sources.
Expatriates’ remittances climbed by 20 per cent in 2015, the sources noted in remarks published by Al Bayan newspaper.
However, remittances shrank by three to five per cent in the first nine months of the current year, as expatriates grew more wary over currency and oil volatility.
The sources said the local currency exchange industry had to grapple with various challenges arising from a major rise of no less than 30 per cent in operational costs as inflation picked up.
Regarding the rise in the value of India-bound transfers, the sources explained that Indian expatriates, encouraged by lower rupee-to-dollar exchange rate, sent home more than AED12.8 billion in the first eight months of the current year.
The market sources also indicate that the United States Federal Reserve’s move to increase interest rates will mean higher value of the dollar, which will encourage more foreign transfers.