DUBAI // Money exchanges have reported an increase in the amount of remittances ahead of Eid Al Fitr, as workers scrimp and save during Ramadan to send money home.
The cash being sent back to countries such as Bangladesh, India, Pakistan, Indonesia and the Philippines has gone up by 7 per cent during the holy month – higher than Diwali, Christmas and New Year.
Fewer telephone calls home and cutting back on groceries and meals is how many workers save the extra cash. “I spend less on phone calls, buy fewer provisions and, sometimes, I save on food, because we get food during iftar,” said Azad, a worker from Bangladesh who handles passengers on wheelchairs at Dubai airport.
“I sent home Dh1,400, which for me is much more than the Dh1,000 I send monthly. This is the most I can afford. Money always goes toward rent and household expenses, but this month’s money is special. It is saved for clothes and food for Eid. My family doesn’t ask for much, but whatever I can save is for them.”
Workers usually earn between Dh700 and Dh1,500 a month and send home about 70 per cent of their earnings.
Sudhir Shetty, the chief operating officer at UAE Exchange, said remittances peaked during this period every year. “Families expect money to spend on clothes, maybe ornaments,” he said. “Remittances are naturally higher to Muslim-dominated countries, such as Bangladesh, Pakistan and Indonesia. We always see a higher trend during the festival season, but Ramadan is when people are the most active because they save to send home for Eid. There is a 7 per cent increase during the month of Ramadan, especially from the Gulf region.”
Remittances vary according to job profiles, he said. “For middle and upper-class families, timing is important, so they wait for a better rate and remit money to invest in shares, bank deposits or mutual funds. But blue-collar workers can’t wait.
“For them it is need-based because somebody is waiting for the money. So, regardless of the rupee strengthening or weakening, they must send home money every month. The vast majority who remit every month belong to this category.”
Other exchanges reported similar rises. “For the UAE, the most important month of remittances has been Ramadan. People are sending for more than just regular support. There are preparations for Eid, zakat,” said Hatem Sleiman, vice president Middle East at Western Union. “Home countries such as Pakistan, Bangladesh, India and the Middle East in general see an increase in remittances during Ramadan. Other seasons include Diwali, in November, for the Indian community and Christmas for others, in particular the Filipino community.”
Research by Western Union published last year showed that 96 per cent of people who remit money do it for a specific purpose, with education, emergencies and gifts the top three categories. Many workers borrowed money from colleagues, while others’ companies handed over salaries early for Eid.
“There is a need for more money in every home for Eid, it’s a necessity,” said Abdullah, a construction worker from Pakistan who lives in Al Quoz. He earns Dh700 but sent home an extra Dh200 on top of the Dh500 he sends each month. “I budget and save, and keep less for my needs. A gift must be given and everyone at home must get a gift. ”
Iftar functions at community centres and mosques help to reduce monthly meal expenses.
“Some people borrow but then they spend the whole year paying back,” said Zubair, a factory worker from India. “I try and save Dh30-40 more a month, so I can send more money now. Slowly, slowly that is how you can keep money aside, but it will not stay with you for long, so best send it home quickly.”
rtalwar@thenational.ae
