Three out of four people in the Middle East who transfer money to loved ones back home expect their volume of remittances to increase over the next 12 months amid rising inflationary challenges for households, according to a survey by Western Union.
About 66 per cent of consumers in the region send and/or receive money once a month or more, said Western Union, the world's second-largest money transfer company after PayPal.
Nearly three-quarters of respondents said they are transferring more money than previous years because of economic challenges such as the global higher cost of living, while 79 per cent of receiving consumers said they intend to ask for more money.
The survey polled 30,600 consumers in 20 countries across the Middle East, Africa and Asia Pacific between October 31 and January 10.
“We all felt a strong sense of relief as global economies went into post-pandemic recovery,” said Jean Claude Farah, president of Middle East and Asia Pacific at Western Union.
“However, macroeconomic conditions have since made the daily lives of people more challenging. Remittances are typically resilient because of their purpose.”
Remittance flows to low- and middle-income countries are estimated to have grown by 5 per cent on an annual basis to $626 billion in 2022, the World Bank said in November.
However, the increase in remittances was lower than the 10.2 per cent growth recorded in 2021, the Washington-based lender said in its migration and development brief.
Global remittance flows to poor and middle-income countries increased to $589 billion in 2021, according to an earlier World Bank report.
The five most common destinations for remittances are India, China, Mexico, the Philippines and Egypt.
The reopening of economies as the Covid-19 pandemic eased supported migrants’ employment and their ability to continue helping their families in their home countries. However, rising prices adversely affected migrants’ real incomes, the report said.
While family support was identified as the main purpose for remittances, consumers in the Middle East said transfers also played a strong role in future financial planning, according to the Western Union survey.
Consumers ranked paying for education costs as the second-highest reason for remitting money, followed by supporting business interests at home and saving for the future.
Together with the cost of living, consumers said they keep track of the performance of their home currencies.
About 70 per cent of respondents in the Middle East send more money when the currency value falls in their country, the survey found.
Criteria such as the best exchange rate, the lowest or no charges paid by receivers and speed of transfers determine which money transfer company consumers use, according to Western Union.
Forty-four per cent of respondents also want to use digital-only money transfer solutions, while 19 per cent prefer in-person channels, the survey found.
Watch: best apps for transferring money in the UAE
Of those who choose not to use digital transfer services, trust and customer experience were identified as top barriers, along with a preference for face-to-face interaction, among both senders and receivers.
However, in the future, half of consumers want a choice in platforms when transferring or collecting money.
Thirty-six per cent want to be able to use digital channels from end-to-end, while 13 per cent would still want to send and/or receive through in-person platforms only, the survey said.
When asked how they would like remittances to evolve, respondents cited greater convenience, better planning and inclusivity.
About 74 per cent of senders and receivers said they are frustrated with repetitive and time-consuming paperwork for remittances, while 78 per cent would prefer facial recognition or biometric technology for instant and reliable registration, according to Western Union.
Meanwhile, 77 per cent of receivers want money to be disbursed on a prepaid card or e-wallet that does not require a bank account, while 82 per cent want the option of receiving in different currencies.
Nearly eight in 10 consumers (79 per cent) said they are eager to use integrated super apps, which allow them to manage remittances alongside other financial products with ease, the survey showed.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
Company%20profile
%3Cp%3EName%3A%20Cashew%0D%3Cbr%3EStarted%3A%202020%0D%3Cbr%3EFounders%3A%20Ibtissam%20Ouassif%20and%20Ammar%20Afif%0D%3Cbr%3EBased%3A%20Dubai%2C%20UAE%0D%3Cbr%3EIndustry%3A%20FinTech%0D%3Cbr%3EFunding%20size%3A%20%2410m%0D%3Cbr%3EInvestors%3A%20Mashreq%2C%20others%0D%3C%2Fp%3E%0A
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Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
