Outbound cash transfers from the United Arab Emirates slowed down by three to five per cent during the first nine months of the current year to a total of $25 billion as expats grow more wary of uncertain exchange rates.
Money transfer and exchange are expected to pick up before yearend driven by upbeat projections that UAE economic activity will continue to gain momentum, according to sources in the local currency exchange and transfer market.
Outbound money transfers edged down by three per cent compared with a growth rate of ten per cent in the same period last year when they totalled $29bn, according to Chairman of the Foreign Exchange & Remittance Group (FERG), Osama Al Rahma.
He added that the 950 currency exchange and transfer companies in the country reported varying performance, explaining that expats’ fears over fluctuations in exchange rates and uncertain oil markets “are not based on realistic reasons”.
Al Rahma noted that the recent guideline book of standard money transfer criteria, which the group released to combat money laundering and handed to all exchange establishments, is in line with best international practices employed in this domain.
($1 = AED3.67, at the time of publishing)