In 2022, a significant portion of the AED 145.7 billion sent abroad from the United Arab Emirates (UAE) found its way to three countries: India, Pakistan, and the Philippines.
According to data from the Central Bank of UAE (CBUAE), approximately 80-95% of the figures have witnessed changes. India, in particular, made history by becoming the first country to receive over $100 billion in remittances within a year, as reported by the World Bank.
India Leads as UAE’s Key Remittance
Out of the total funds sent abroad from the UAE, Indians contributed AED 44.438 billion, representing around 30.5% of the overall remittances, making the UAE the second-largest source of remittances for India after the United States (US).
Pakistan followed closely, receiving 12.2% of the remittances, which accounted for AED 17.775 billion. The Philippines secured the third spot, with 8.4% of the funds (AED 12.238 billion) being directed to the country.
Understanding Remittances
To put it simply, remittances refer to the funds sent by individuals residing in foreign countries to their families or friends back home.
According to the CBUAE’s 2022 Financial Stability Report, the total amount of money transferred from the UAE abroad experienced a slight decline of 1.4%, reaching AED 145.7 billion.
These transfers primarily comprised personal remittances (AED 105.9 billion), followed by trade remittances (AED 28.5 billion), other remittances (AED 10.6 billion), and investment remittances (AED 0.7 million). Despite this, the CBUAE assures the strength of the UAE’s financial system, which stands ready to support the local economy.
