UAE’s remittance market reaps digitalisation drive
Oxford Business Group and Al Fardan Exchange team up for new Covid-19 Response Report
A new Covid Response Report (CRR) produced by Oxford Business Group (OBG), in partnership with Al Fardan Exchange, shines a spotlight on the UAE’s money transfer industry, looking in detail at the part that ongoing digitalisation is poised to play in boosting remittances by facilitating cashless transactions and reducing costs.
Covid Response Report
The CRR provides an in-depth analysis of the country’s response to the pandemic in an easy-to-navigate and accessible format, focusing on key data and infographics relating to the country’s socio-economic landscape.
The report features detailed coverage of the pre-pandemic expansion witnessed across the UAE’s remittance market, which has benefited from the country’s success in positioning itself as a regional financial hub and a favoured destination for foreign workers.
It also considers the outlook for the segment, noting that the UAE will likely retain its position as the second-biggest market globally for outbound remittances, despite the pandemic dampening outflows in 2020.
As the UAE moves towards its digitalisation targets, OBG also charts the rapid uptake of app-based services across the money transfer industry, fuelled by social distancing precautions and an increased appetite for new technologies, especially mobile services.
The country’s broader innovation ecosystem and the opportunities it offers investors are another key focus. Here, the report tracks the rise in venture capital activity evident in the country throughout 2020, while documenting the segments ripe for investment, such as e-commerce, fintech and Medtech.
Subscribers will also find a detailed analysis of the key developments at Al Fardan Exchange in 2020, including the measures that the exchange house put in place to facilitate business continuity and the huge rise in money transfers conducted via mobile application through the pandemic.
“The remittance industry has reached an inflection point as a result of Covid-19, with the migrant community increasingly turning to digital services amid a changing payments landscape,” Hasan Fardan Al Fardan, CEO at Al Fardan Exchange, said. “This forced innovation has demonstrated the proficiency of the modern market. In anticipation of further disruptions, the financial industry has turned the frustrations of unknown processes into recognition of value-adding services, as virtual collaboration and innovation became our new reality,” he added.
Jana Treeck, OBG’s Managing Director for the Middle East, said the UAE’s strong fundamentals, together with its position as a regional leader in disruptive industries, were expected to facilitate a swift economic recovery and support sustainable future growth.
“A GCC-wide CEO survey conducted by Oxford Business Group in July found that UAE-based CEOs were the most likely in the region to have implemented remote working practices, invested in automation and digitalised revenue channels or services,” she said. “The signs are that this sustained digitalisation drive is likely to further boost productivity and, over time, strengthen the country’s competitiveness.”
The CRR on the UAE forms part of a series of tailored reports which the global research and advisory company is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of country-specific Covid-19 Economic Impact Assessment articles and interviews.
The CRR is now available to view and download at Oxford business group
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