Al Ansari Exchange in Al Wahda Mall, Abu Dhabi. The exchange house reported a 212 per cent surge in digital money transfers in 2020. Delores Johnson / The National
Al Ansari Exchange in Al Wahda Mall, Abu Dhabi. The exchange house reported a 212 per cent surge in digital money transfers in 2020. Delores Johnson / The National
Al Ansari Exchange in Al Wahda Mall, Abu Dhabi. The exchange house reported a 212 per cent surge in digital money transfers in 2020. Delores Johnson / The National
Al Ansari Exchange in Al Wahda Mall, Abu Dhabi. The exchange house reported a 212 per cent surge in digital money transfers in 2020. Delores Johnson / The National

Digital money transfers surge as outlook for UAE's remittance sector improves


Felicity Glover
  • English
  • Arabic

The digitalisation of the UAE’s remittance sector continued to surge this year as consumers increasingly relied on the convenience of mobile apps to send money home amid the Covid-19 pandemic, according to Rashed Al Ansari, the chief executive of Al Ansari Exchange.

The exchange house registered a 212 per cent increase in its digital money transfer transactions from January to December last year after introducing a mobile app before the outbreak of the pandemic, Mr Al Ansari said.

He did not disclose how much money was transferred using its app, or the company’s revenue from this, but said Al Ansari Exchange had 26 per cent of market share for total remittances in the UAE, up from 22 per cent at the beginning of 2020.

"In our case, we had a digital channel before the pandemic and the numbers have jumped significantly," Mr Al Ansari told The National. "Now, it contributes to 14 per cent of all remittances. I remember two years ago, we were less than 2 per cent.

“The public was basically ready and they just needed a kind of push for a reason to adopt digital.”

Outward personal remittances from the UAE dropped by 5 per cent, or Dh8.3bn ($2.26bn), year-on-year in 2020, according to the Central Bank of UAE's annual report. Transfers through exchange houses fell by Dh18.1bn or 13.8 per cent, while outward remittances through banks increased by Dh9.8bn or 28.8 per cent, the report added.

Meanwhile, remittance flows to low- and middle-income countries fell 1.6 per cent to $540bn in 2020 but are set to rise as the global economy recovers, the World Bank said last month.

Despite the impact of Covd-19, the decline in remittance flows in 2020 was smaller than the 4.8 per cent drop recorded during the 2009 global financial crisis, the Washington-based lender said in its migration and development brief.

“As Covid-19 still devastates families around the world, remittances continue to provide a critical lifeline for the poor and vulnerable,” Michal Rutkowski, global director of the social protection and jobs global practice at the World Bank, said in the report. “Supportive policy responses, together with national social protection systems, should continue to be inclusive of all communities, including migrants.”

The outlook for the UAE's remittance sector is positive for the remainder of the year and 2022, Mr Al Ansari said.

While the World Bank has forecast global remittance flows to increase by 1.5 per cent this year, Al Ansari Exchange is expecting its money transfer flows to increase by 2.6 per cent, Mr Al Ansari said.

The UAE's remittance sector in 2021 and 2022 will be boosted by events such as the upcoming Dubai Expo 2020 and the UAE government's regulatory changes – including the new law that allows full foreign ownership of onshore companies and the offer of citizenship to talented residents, he added.

“We have the Expo coming up and that means quite a lot of tourism that will definitely add value to the economy,” Mr Al Ansari said.

“[But] don’t forget there is also the recently implemented law that foreign investors can own 100 per cent of their companies onshore – this is something unprecedented for the UAE.

“I also think this will attract a lot of FDI [foreign direct investment] and new SMEs to establish here in the UAE. That will also directly impact the recruitment of talent from outside the UAE. So I believe 2.6 per cent growth … is the minimum we are going to see.”

Foreign direct investment to the UAE surged 44 per cent to nearly $20bn (Dh73.45bn) in 2020, the government said in May. The large inflows to the UAE come amid the country's plans to double the size of its economy to reach Dh3 trillion over the coming decade.

“Traditionally, the second half [of the year] is better," Mr Al Ansari said. "We have Eid [Al Adha], we have the Christmas holidays where there is a big pipe in remittances. So those will continue, in addition to all of the initiatives that the government is doing in order to put the wheel of the economy back into motion better than before.

"I think the signs are positive as long as the vaccinations in the UAE continue at this pace and also worldwide. There will be a pent up demand as well. I think 2022 and beyond is going to be a growth period."

Meanwhile, Al Ansari Exchange is continuing to trial blockchain technology in an effort to streamline the money transfer process and reduce fees, the chief executive said.

By utilising a blockchain-powered network, remittance operators can offer users a much faster, cheaper and more transparent service, technology research consultancy Juniper Research said in a 2019 report.

“This is an opportunity for traditional money transfer operators to change the way they operate; reorienting their business models around the benefits blockchain enables,” Juniper Research said.

Using blockchain will "make the journey [of money transfers] more efficient", Mr Al Ansari said.

Al Ansari Exchange carried out its first blockchain transaction early in 2020.

“We're still finding some issues, some rejections with transactions, which we are basically fine tuning. It has a great potential in the future,” Mr Al Ansari said.

“Not all the banks are part of the blockchain technology. It's still limited. Even if you are part of the blockchain, you have to have a bilateral agreement separately with that bank to fulfil the local regulations, so it's not as easy as people think – there are complications."

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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

The specs

Engine: 3.8-litre twin-turbo V8

Power: 611bhp

Torque: 620Nm

Transmission: seven-speed automatic

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The specs: 2018 Maserati Levante S

Price, base / as tested: Dh409,000 / Dh467,000

Engine: 3.0-litre V6

Transmission: Eight-speed automatic

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Torque: 580Nm @ 4,500rpm

Fuel economy, combined: 10.9L / 100km

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Quick facts on cancer
  • Cancer is the second-leading cause of death worldwide, after cardiovascular diseases 
  •  About one in five men and one in six women will develop cancer in their lifetime 
  • By 2040, global cancer cases are on track to reach 30 million 
  • 70 per cent of cancer deaths occur in low and middle-income countries 
  • This rate is expected to increase to 75 per cent by 2030 
  • At least one third of common cancers are preventable 
  • Genetic mutations play a role in 5 per cent to 10 per cent of cancers 
  • Up to 3.7 million lives could be saved annually by implementing the right health
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  • The total annual economic cost of cancer is $1.16 trillion

   

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7.05pm Rayig

7.40pm Torno Subito

8.15pm Talento Puma

8.50pm Etisalat

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The Bloomberg Billionaire Index in full

1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
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7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
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10 Carlos Slim $55.2 billion

The biog

Name: Capt Shadia Khasif

Position: Head of the Criminal Registration Department at Hatta police

Family: Five sons and three daughters

The first female investigator in Hatta.

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She believes that there is a solution to every problem

 

Breast cancer in men: the facts

1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.

2) Symptoms can include a lump, discharge, swollen glands or a rash. 

3) People with a history of cancer in the family can be more susceptible. 

4) Treatments include surgery and chemotherapy but early diagnosis is the key. 

5) Anyone concerned is urged to contact their doctor

 

The specs: 2018 BMW R nineT Scrambler

Price, base / as tested Dh57,000

Engine 1,170cc air/oil-cooled flat twin four-stroke engine

Transmission Six-speed gearbox

Power 110hp) @ 7,750rpm

Torque 116Nm @ 6,000rpm

Fuel economy, combined 5.3L / 100km

 


 

Profile of MoneyFellows

Founder: Ahmed Wadi

Launched: 2016

Employees: 76

Financing stage: Series A ($4 million)

Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund

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Engine: 3.0-litre 6-cyl turbo

Power: 435hp at 5,900rpm

Torque: 520Nm at 1,800-5,500rpm

Transmission: 9-speed auto

Price: from Dh498,542

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The bio

Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district

Was a middle distance state athletics champion in school

Enjoys driving to Fujairah and Ras Al Khaimah with family

His dream is to continue working as a social worker and help people

Has seven diaries in which he has jotted down notes about his work and money he earned

Keeps the diaries in his car to remember his journey in the Emirates

Three tips from La Perle's performers

1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

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How does ToTok work?

The calling app is available to download on Google Play and Apple App Store

To successfully install ToTok, users are asked to enter their phone number and then create a nickname.

The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.

Users can also invite other contacts to download ToTok to allow them to make contact through the app.

 

10 tips for entry-level job seekers
  • Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
  • Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
  • Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
  • For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
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  • Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
  • Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
  • Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
  • Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
  • Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.

Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz

500 People from Gaza enter France

115 Special programme for artists

25   Evacuation of injured and sick

Why seagrass matters
  • Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
  • Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
  • Biodiversity: Support species like sea turtles, dugongs, and seabirds
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