By M.V.A. Kumar
DOHA: Remittances from Qatar have shown strong year-on-year growth with global transfers out of the country standing at $10.4bn last year and South Asia has attracted 70 percent of the remittances, Xpress Money COO, Sudesh Giriyan said yesterday, quoting World Bank data.
South Asian countries were the largest beneficiaries of remittances originating from Qatar. Of this, India alone accounted for $3.99bn of the remittances, while retaining its status as the largest recipient of remittances in the world.
Nepal received the second highest remittances from Qatar with $2.02bn in 2015, Bangladesh came third with $525m, Sri Lanka’s tally was $511m and Pakistan received $427m, according to data released by Xpress Money, a leading global money transfer brand.
Giriyan said in 2011 remittances from Qatar were merely $6.77bn and this had grown to $10.09bn in 2014. Explaining the strong year-on- year growth in remittances from the country, he said that although expatriate workers from South Asia were drawn to Qatar’s vibrant economy, they chose to safeguard their future by investing back home and providing for their families.
“This is clearly visible as trends show that remittances from Qatar to the rest of the world are showing strong year-on-year growth, and hit their highest levels yet in 2015,” Giriyan said.
In the Mena region, Egypt is the largest recipient of Qatari remittances, receiving $1.05bn last year, while Jordan received $207m from Qatar. “Global trade and economic hubs such as Qatar are a key part of the global economy, and catalyse economic benefits for a host of countries through money transfers and remittances by expatriate workers. These remittances are directly correlated with increased consumer spending and investments in education, healthcare and infrastructure in receiving countries, and lead to a better quality of life overall,” Giriyan said.
Meanwhile, the World Bank said in its Migration and Development Brief that weak oil prices and other factors strained the earnings of international migrants and their ability to send money home to their families.
Remittances to developing countries amounted to $431.6bn in 2015, an increase of 0.4 percent over $430bn in 2014. The growth pace in 2015 was the slowest since the global financial crisis. Global remittances, which included those to high-income countries, contracted by 1.7 percent to $581.6bn in 2015, from $592bn in 2014, it said.
Last year, India attracted about $69bn in remittances globally, down from $70bn in 2014. Other large recipients in 2015 were China, with $64bn, the Philippines ($28bn), Mexico ($25bn), and Nigeria ($21bn).
Remittances to South Asia grew by 2 percent in 2015, down from 4.3 percent in 2014, due to a contraction in flows to India, the world’s largest remittance recipient, and Sri Lanka, despite a spike in remittances to Nepal in response to the earthquake. The region is expected to attract $123.3bn in remittances this year, compared to $117.9bn in 2015, the Migration and Development Brief report said.
The Peninsula
