International money transfers from the UAE are set to increase in 2023 as residents plan to send more money in the coming year, according to a study conducted by Western Union.
The study revealed that 76 percent of the consumers will transfer more money in next 12 months while 75 percent expect to receive more funds in the same period.
More than 1,000 UAE residents, who regularly send and receive funds, participated in the survey commissioned by Western Union.
Reasons for transferring money
The majority, 60 percent, cited the financial support for the family while only 11 percent said they will send money for the their future savings.
According to the study, 74 percent said that they will send more money in 2023 because of higher cost of living. Around 71 percent said they prefer to remit when the value of currency falls in the receiving country.
Apart from family finances and saving, the study shows a third factor of sending funds on special occasions. Almost a quarter, 21 percent, of consumers said they focus on transferring money during festive season such as Ramadan, Christmas, Diwali and New Year, as well as other special occasions such as birthdays, anniversaries and graduations.
Jean Claude Farah, President of Middle East and Asia Pacific at Western Union said that sending remittances is a very personal decision.
“Western Union data supports that one of the most common reasons of sending remittances is to support family and loved ones,” he added.
Money transfer through digital channels
As the digitalisation gathers pace, Western Union’s study stated that 42 percent consumers currently send money across borders through digital channels.
The UAE is home to over 200 nationalities belonging to different race and regions. Expats work in different sectors and get competitive salaries based on their talent and nature of jobs.
The UAE ranks among the top most talent competitive nations . Some of its more sizeable communities come from the world’s largest remittance-receiving economies.
Indians are the largest expatriate community in the UAE followed by Pakistanis.
tanvir@dubainewsweek.com
