The top five destination countries for outward personal remittances from the UAE during the second quarter of 2020 were India, Pakistan, Egypt, Philippines and Bangladesh. Jeffrey E Biteng / The National
The top five destination countries for outward personal remittances from the UAE during the second quarter of 2020 were India, Pakistan, Egypt, Philippines and Bangladesh. Jeffrey E Biteng / The National
The top five destination countries for outward personal remittances from the UAE during the second quarter of 2020 were India, Pakistan, Egypt, Philippines and Bangladesh. Jeffrey E Biteng / The National
The top five destination countries for outward personal remittances from the UAE during the second quarter of 2020 were India, Pakistan, Egypt, Philippines and Bangladesh. Jeffrey E Biteng / The Natio

How Covid-19 transformed the UAE's remittance sector in 2020


Deepthi Nair
  • English
  • Arabic

The digitalisation of the UAE's remittance industry picked up in 2020 as a result of Covid-19-related movement restrictions, with many providers reporting exponential growth in money transfers through mobile apps.

“The major trend in the UAE remittance industry this year is the adoption of digital channels faster than what we have seen in the previous years,” says Rashed Al Ansari, chief executive of Al Ansari Exchange. “The pandemic has warped the speed of adoption for existing digital channels, shortening the uptake that would normally take years into months, especially in the second quarter of this year.”

The UAE is the second-biggest global market for outbound migrant remittances after the US before the Covid-19 outbreak, according to preliminary 2020 data in a study by Oxford Business Group and Al Fardan Exchange.

Outward personal remittances rose 7.8 per cent to Dh41.4 billion during the first quarter of 2020, up from Dh38.4bn in the same period last year, according to the Central Bank of the UAE. However, the volume declined 10.3 per cent to Dh38.2bn in the second quarter because of Covid-19 movement restrictions.

The major trend in the UAE remittance industry this year is the adoption of digital channels faster than what we have seen in the previous years

Money transfers sent through exchange houses fell Dh4.6bn in the second quarter of 2020, while outward remittances through banks rose Dh300 million, according to the central bank.

Despite the increased pivot to digital services, the overwhelming majority of money flows remitted from the UAE are still sent via exchange houses, which served 77 per cent of the market in the first quarter, according to the Oxford Business Group study.

Market analysts say the full impact on remittances can be fully measured once the third and fourth quarter reports become available.

The World Bank expects global remittances to drop 7 per cent this year to $508bn. However, it also expects remittances to fall a further 7.5 per cent in 2021 to $470bn. By comparison, remittances decreased about 5 per cent in 2009 following the global financial crisis.

There was a 40 per cent drop in UAE business volumes at Orient Exchange during the first six months of the pandemic, says Rajiv Raipancholia, chief executive of Orient Exchange and treasurer of the Foreign Exchange and Remittance Group.

“From July, we are seeing a steady growth and since the last two months, the curve has been flat," Mr Raipancholia adds. "Home remittances to India and Philippines had the highest drop in volumes.”

The top five destination countries for outward personal remittances during the second quarter were India (34.3 per cent), Pakistan (13 per cent), Egypt (6.4 per cent), the Philippines (6.1 per cent) and Bangladesh (4.8 per cent), according to the Central Bank of the UAE.

Remittances to various corridors have been affected by factors such as salary cuts, retrenchments and the cancellation of flights.

With a record total of $554 billion, remittances inflows to low-and middle-income countries exceeded foreign direct investment inflows in 2019.
With a record total of $554 billion, remittances inflows to low-and middle-income countries exceeded foreign direct investment inflows in 2019.

“Due to the spread of Covid-19 and corresponding restrictions on outdoor movement, we noticed a drop in the blue-collar expat remittances made via walk-ins to branches. There were also repatriations of both blue-collar and white-collar expats, which affected the volumes,” a Lulu Financial Holdings spokesperson said.

But Bangladesh and Pakistan bucked the trend, with outward personal remittances to these corridors rising on an annual basis, the spokesperson added.

While the pandemic hit remittance flows in the first half, many white-collar employees shifted to remitting money via digital platforms, Mr Raipancholia says.

Certain corridors like Pakistan saw a spike in money transfers, given depressed currency rates and increased remittances to support economic disruption back home.
Certain corridors like Pakistan saw a spike in money transfers, given depressed currency rates and increased remittances to support economic disruption back home.

The global average cost of sending $200 was 6.75 per cent of the amount in the third quarter of 2020, up from 6.67 in the second quarter of the year, but down from 6.94 per cent in the first quarter of 2019, according to the World Bank's Remittance Prices Worldwide Database. By 2030, the United Nations has committed to reduce remittance transaction costs to less than 3 per cent.

Banks are the costliest channel for sending remittances, averaging 10.89 per cent, followed by post offices at 8.59 per cent, money transfer operators at 5.81 per cent, and mobile operators at 2.83 per cent. At just under 5 per cent, South Asia was the least costly region to send $200 in the third quarter of 2020.

The UN cites technological innovations – including mobile technologies, blockchain and digitalisation that accelerated during the pandemic – as one tool that could help lower remittance costs and improve efficiencies. The organisation estimates the global digital remittance market to grow by 12.2 per cent to $36.2bn by 2027, up from $16.2bn in 2020.

According to the World Bank’s Remittance Prices Worldwide Database, the global average cost of sending $200 was 6.8 per cent in the third quarter of 2020.
According to the World Bank’s Remittance Prices Worldwide Database, the global average cost of sending $200 was 6.8 per cent in the third quarter of 2020.

Increased adoption of technology to remit funds also led to a boom in FinTech companies including TransferWise, Now Money, Denarii Cash and Rise tapping into the sector. These firms offer lower fees, reductions in transfer times and make finance accessible to all.

Now Money provides app-based accounts with physical debit cards and remittance options for low-income workers, while Rise offers migrant workers affordable insurance options, retirement planning and the ability to pay for products in instalments.

TransferWise, a global low-cost digital money transfer service, now operates in the UAE. It enables people to send money online at the mid-market exchange rate – the mid-point between demand and supply for a currency – and charges an upfront, transparent fee.

“In the UAE, we are seeing a continuous increase in the adoption of technology, specifically the pace of mobile wallet adoption, and this is driven by users searching for fast, reliable and cheap digital solutions to send money to loved ones back home,” says Jon Santillan, founder of Denarii Cash, a remittance app focused on Filipino expats sending money home from the Gulf.

Rise rolled out a new platform that allows expatriate workers to eliminate the cost of remittance fees by sharing real-time access to their bank accounts with family and friends. The multi-use Xare (pronounced share) app enables users to set daily or monthly limits for recipients, provide short-term loans through credit cards, set up expense accounts for colleagues or send pocket money to their children without them seeing the details of the account.

“Remittance has only evolved on two dimensions – how much does it cost to move money and how long does it take to move money,” says Padmini Gupta, co-founder and chief executive at Rise.

"All other elements of remittances – the needs of both the sender [control and visibility on where the money is being spent] and receiver [ability to spend online/get access to credit] have not yet been targeted," she tells The National.

Ms Gupta says remittance volumes to the Philippines dropped by about 3 per cent this year because of the Covid-19 impact on the UAE's service sector. However, she adds that corridors such as Pakistan saw a spike in money transfers because of depressed currency rates and efforts by citizens to support families affected by economic disruption at home.

“There is an irrational fear of FinTechs disrupting incumbents. Partnerships with regulatory authorities and incumbent players is essential to make the UAE competitive and we are seeing this pick up,” Mr Santillan says.

“If we look to the US, Europe or Chinese FinTech landscape, innovation has made the financial sectors competitive. FinTech can play the same role in the UAE and GCC,” he adds.

Outlook for 2021

Once the Covid-19 vaccine is distributed widely in the UAE, remittance industry stakeholders expect the sector to rebound in the first or second quarter of 2021.

“With the government easing restrictions and implementing measures to stimulate tourism and other economic activities, we are already witnessing a steady recovery in the foreign exchange and remittance sector,” Mr Al Ansari says.

“We expect this upward trajectory to gain momentum in 2021, with the availability of an effective vaccine. We expect to see increased digital transformation activities within the industry in 2021 and beyond.”

Declining volumes and a switch to digital transfers with high cost of compliance [will] endanger smaller exchange houses

However, the Lulu Financial Holdings spokesperson forecasts challenging conditions ahead for the sector in the first half of next year as the “pandemic domino effect continues and travel remains restricted on a need-to basis”.

The spokesperson also hints at consolidation in the UAE’s remittance industry as “declining volumes and a switch to digital transfers with high cost of compliance endanger smaller exchange houses”.

The gradual recovery in global aviation traffic is also expected to create demand for remittances and money exchange services as more people begin to travel for work and leisure, the Oxford Business Group report said. Another factor expected to boost remittance volumes in 2021 is the rapid adoption of mobile money transfers, the report adds.

“A gradual recovery in global travel and consumer sentiment is likely to lead to a strong rebound in 2021, with the UAE expected to play a key role in this,” the OBG report says.

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal 

Rating: 2/5

David Haye record

Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

England squad

Moeen Ali, James Anderson, Jofra Archer, Jonny Bairstow, Dominic Bess, James Bracey, Stuart Broad, Rory Burns, Jos Buttler, Zak Crawley, Sam Curran, Joe Denly, Ben Foakes, Lewis Gregory, Keaton Jennings, Dan Lawrence, Jack Leach, Saqib Mahmood, Craig Overton, Jamie Overton, Matthew Parkinson, Ollie Pope, Ollie Robinson, Joe Root, Dom Sibley, Ben Stokes, Olly Stone, Amar Virdi, Chris Woakes, Mark Wood

House-hunting

Top 10 locations for inquiries from US house hunters, according to Rightmove

  1. Edinburgh, Scotland 
  2. Westminster, London 
  3. Camden, London 
  4. Glasgow, Scotland 
  5. Islington, London 
  6. Kensington and Chelsea, London 
  7. Highlands, Scotland 
  8. Argyll and Bute, Scotland 
  9. Fife, Scotland 
  10. Tower Hamlets, London 

 

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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How to help

Call the hotline on 0502955999 or send "thenational" to the following numbers:

2289 - Dh10

2252 - Dh50

6025 - Dh20

6027 - Dh100

6026 - Dh200

Frankenstein in Baghdad
Ahmed Saadawi
​​​​​​​Penguin Press

Gertrude Bell's life in focus

A feature film

At one point, two feature films were in the works, but only German director Werner Herzog’s project starring Nicole Kidman would be made. While there were high hopes he would do a worthy job of directing the biopic, when Queen of the Desert arrived in 2015 it was a disappointment. Critics panned the film, in which Herzog largely glossed over Bell’s political work in favour of her ill-fated romances.

A documentary

A project that did do justice to Bell arrived the next year: Sabine Krayenbuhl and Zeva Oelbaum’s Letters from Baghdad: The Extraordinary Life and Times of Gertrude Bell. Drawing on more than 1,000 pieces of archival footage, 1,700 documents and 1,600 letters, the filmmakers painstakingly pieced together a compelling narrative that managed to convey both the depth of Bell’s experience and her tortured love life.

Books, letters and archives

Two biographies have been written about Bell, and both are worth reading: Georgina Howell’s 2006 book Queen of the Desert and Janet Wallach’s 1996 effort Desert Queen. Bell published several books documenting her travels and there are also several volumes of her letters, although they are hard to find in print. Original documents are housed at the Gertrude Bell Archive at the University of Newcastle, which has an online catalogue.
 

UAE currency: the story behind the money in your pockets
Andor
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COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Haltia.ai%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Arto%20Bendiken%20and%20Talal%20Thabet%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20AI%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2041%0D%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20About%20%241.7%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self%2C%20family%20and%20friends%26nbsp%3B%3C%2Fp%3E%0A
Brief scores:

Southampton 2

Armstrong 13', Soares 20'

Manchester United 2

Lukaku 33', Herrera 39'

1971: The Year The Music Changed Everything

Director: Asif Kapadia

4/5

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

UAE currency: the story behind the money in your pockets
What is a Ponzi scheme?

A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.

The Facility’s Versatility

Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
 
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
 
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
 
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
 
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
 
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket

Defence review at a glance

• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”

• Prioritise a shift towards working with AI and autonomous systems

• Invest in the resilience of military space systems.

• Number of active reserves should be increased by 20%

• More F-35 fighter jets required in the next decade

• New “hybrid Navy” with AUKUS submarines and autonomous vessels

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

MATCH INFO

What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany

Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)

MATCH INFO

Fixture: Ukraine v Portugal, Monday, 10.45pm (UAE)

TV: BeIN Sports

While you're here
Mobile phone packages comparison
8 UAE companies helping families reduce their carbon footprint

Greenheart Organic Farms 

This Dubai company was one of the country’s first organic farms, set up in 2012, and it now delivers a wide array of fruits and vegetables grown regionally or in the UAE, as well as other grocery items, to both Dubai and Abu Dhabi doorsteps.

www.greenheartuae.com

Modibodi  

Founded in Australia, Modibodi is now in the UAE with waste-free, reusable underwear that eliminates the litter created by a woman’s monthly cycle, which adds up to approximately 136kgs of sanitary waste over a lifetime.

www.modibodi.ae

The Good Karma Co

From brushes made of plant fibres to eco-friendly storage solutions, this company has planet-friendly alternatives to almost everything we need, including tin foil and toothbrushes. 

www.instagram.com/thegoodkarmaco

Re:told

One Dubai boutique, Re:told, is taking second-hand garments and selling them on at a fraction of the price, helping to cut back on the hundreds of thousands of tonnes of clothes thrown into landfills each year.

www.shopretold.com

Lush

Lush provides products such as shampoo and conditioner as package-free bars with reusable tins to store. 

www.mena.lush.com

Bubble Bro 

Offering filtered, still and sparkling water on tap, Bubble Bro is attempting to ensure we don’t produce plastic or glass waste. Founded in 2017 by Adel Abu-Aysha, the company is on track to exceeding its target of saving one million bottles by the end of the year.

www.bubble-bro.com

Coethical 

This company offers refillable, eco-friendly home cleaning and hygiene products that are all biodegradable, free of chemicals and certifiably not tested on animals.

www.instagram.com/coethical

Eggs & Soldiers

This bricks-and-mortar shop and e-store, founded by a Dubai mum-of-four, is the place to go for all manner of family products – from reusable cloth diapers to organic skincare and sustainable toys.

www.eggsnsoldiers.com

THE BIO

Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old

Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai

Favourite Book: The Alchemist

Favourite quote: Failing to prepare is preparing to fail

Favourite place to Travel to: Vienna

Favourite cuisine: Italian food

Favourite Movie : Scent of a Woman

 

 

The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
AIR
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EBen%20Affleck%3Cbr%3E%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EMatt%20Damon%2C%20Jason%20Bateman%2C%20Ben%20Affleck%2C%20Viola%20Davis%3Cbr%3E%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Britain's travel restrictions
  • A negative test 2 days before flying
  • Complete passenger locator form
  • Book a post-arrival PCR test
  • Double-vaccinated must self-isolate
  • 11 countries on red list quarantine

     
Family reunited

Nazanin Zaghari-Ratcliffe was born and raised in Tehran and studied English literature before working as a translator in the relief effort for the Japanese International Co-operation Agency in 2003.

She moved to the International Federation of Red Cross and Red Crescent Societies before moving to the World Health Organisation as a communications officer.

She came to the UK in 2007 after securing a scholarship at London Metropolitan University to study a master's in communication management and met her future husband through mutual friends a month later.

The couple were married in August 2009 in Winchester and their daughter was born in June 2014.

She was held in her native country a year later.