The United Arab Emirates is one of the cheapest places in the world from which to send remittances to foreign countries, according to the World Bank.
“Whilst the costs in these markets can vary from month to month, their competitiveness in comparison to other sending markets in the sample reflects the fact that the Gulf region is amongst the cheapest for remittances globally thanks to the high level of competition achieved in these markets,” a World Bank statement said.
South Asia is the cheapest region to send money to, with an average of 6.54 percent.
About 80 percent of the UAE’s population of an estimated 8.3m people are expats, of which a significant portion send remittances to family in countries such as India, Pakistan, Sri Lanka and the Philippines.
According to the World Bank, sending remittances from the UAE to Pakistan (an average 4.92 percent of the money transferred) is the cheapest corridor in the world, while the UAE to Sri Lanka (6.35 percent) is the fifth cheapest.
Saudi Arabia to Pakistan (5.63 percent) and Yemen (5.92 percent) are the third and fourth least expensive corridors, considering the transaction fee and exchange rate margin.
To send US$200 from the UAE to India – where a significant chunk of the nation’s earnings are sent – costs an average 5.02 percent, while it can be as cheap as 2-3 percent depending on the bank used.
It will cost an average 5.63 percent to send US$200 in remittances to Nepal, 3.18 percent to Sri Lanka, 3.23 percent to the Philippines, 4.06 percent to Egypt, 2.46 percent to Pakistan.