Foreign workers in the UAE send home more than $10 billion (Dh36.7bn) every year – making the country the second highest fund remittance performer in the GCC, said global trade association Money Transfer International (MTI).

And the UAE is the third largest sender of remittances worldwide. MTI says the region has the potential to drive growth in the sector though the global economy is slowing down.

“The GCC is one of the top five performers in the global remittance industry, which was worth $550bn in 2008,” said MTI’s Regional Director, Premal Patel. He said recent estimates from the International Monetary Fund indicated that the remittance volume in the UAE would lead the increase and would rise by five per cent this year.

“The UAE is set to play a crucial role in remittance sector growth,” he added. “During March 2009 alone the volume of remittances from the UAE to Pakistan topped $174 million.

“More than 40 per cent of all overseas Filipino workers are based in the Middle East and 10.5 per cent live and work in the UAE. Remittances to the Philippines from the UAE reached more than $584m in 2008.”

According to MTI statistics, Saudi Arabia, the UAE and Kuwait are the GCC’s best performers. On the back of the anticipated growth in the region MTI recently launched a Gulf chapter in Bahrain.

Lady Olga Maitland, MTI CEO, said: “The decision to launch MTI Middle East is a direct response to the remittance sector’s call for a voice to represent its interests.

“Our global network will expand this year to include four more chapters, including ones in the Philippines and Pakistan both high volume destinations for receiving remittances.

And Patel added: “MTI’s Middle East chapter is geared to facilitate and safeguard the interests of the industry as a whole, be it the consumer, service providers and partners.”

Source Courtesy: Emirates Business 24/7 2009