UAE: India, Pakistan, Philippines lead Dh145.7bn outward remittances.
Data from the Central Bank of UAE (CBUAE) reveals that in 2022, India, Pakistan, and the Philippines accounted for over 50 percent of the total outward remittances from the UAE .
India, Pakistan, and the Philippines Lead Outward Remittances from the UAE
amounting to Dh145.7 billion , India received Dh44.438 billion, representing 30.5 percent of the remittances from the UAE. This makes the UAE the second-largest source of remittances for India after the US. Pakistan accounted for 12.2 percent with Dh17.775 billion, while the Philippines came in third with an 8.4 percent share at Dh12.238 billion.
Outward Remittances Moderate as UAE Financial System Remains Strong
According to the Financial Stability Report 2022 by the CBUAE, outward remittances through exchange houses in the UAE declined by 1.4 percent to Dh145.7 billion in 2022. The report highlights that personal remittances accounted for the majority at Dh105.9 billion, followed by trade remittances at Dh28.5 billion, other remittances at Dh10.6 billion, and investment remittances at Dh0.7 million , Despite global challenges, the UAE's financial system remained resilient in 2022. The banking sector demonstrated sufficient capitalization and liquidity buffers. The report also notes stable macro-financial cycles, with healthy funding structure and private credit growth in the UAE banking system.
UAE's Economic Growth Forecasted to Decelerate, ESG Finance Gains Traction
The CBUAE's report predicts a deceleration in the UAE's real GDP growth to 3.9 percent in 2023, primarily due to lower oil production and moderate non-oil sector growth. In 2022, the real GDP increased by 7.9 percent, driven by a 7.2 percent growth in the non-oil sector and a 9.5 percent expansion in the oil sector , ESG finance gained traction in the UAE, with green debt issuances reaching Dh23.4 billion in 2022, accounting for 18.2 percent of total bond issuances. The UAE insurance sector remained sound, experiencing sustained business growth, while the finance companies sector maintained resilience despite a contraction in business volumes.
UAE Banks Demonstrate Resilience in Stress Test Exercise
The CBUAE's stress test exercise affirms the resilience of UAE banks against risks of stagflation and market uncertainties. The exercise demonstrated that the banking sector possesses sufficient capital and liquidity to withstand severe hypothetical scenarios, while continuing to support the economy by providing credit to UAE borrowers.