DOHA: Remittances by foreign workers in Qatar last year slipped by 0.45 percent, or by QR180m, compared to the previous year. The total remittance as a share of GDP reduced to 5.24 percent last year from 5.49 percent in 2013.
The country-wise composition of remittances remained almost the same in 2014 compared to the previous year. Asian countries comprised around 65 percent of the total transfer.
In terms of percentage share during 2014, the transfer to MENA region (other than GCC) reduced by 2 percent while the same to GCC countries increased by 2 percent. The top 5 countries continued to have around 66 percent of the total transfer, Qatar Central Bank (QCB) data revealed.
An analysis of the balance sheets of the exchange houses showed that the combined total assets in 2014 increased to QR1.36bn from QR1.32bn in 2013, reflecting a growth of 3.30 percent. The increase in assets was mainly attributed to the increase in holding of cash and metals and their balances with banks over the previous year.
According to the World Bank’s Migration & Remittances fact book, Qatar has the world’s highest level of expatriates, relative to the country’s population. The growth of remittance sector is directly proportional to expat population. The strengthening of the dollar over Asian currencies, money flows from the GCC to the developing countries continued to grow in 2014.
The growing influx of expatriates seeking job opportunities in the Middle East, improving economic prospects in Asian countries, rising deposit interest rates in some expatriates’ home countries have created a positive impact on money flows, the QCB document noted.
The rise in remittances is also due to the number of festivals expatriates observe.
During the second half of the year, particularly during popular festivals or whenever the US dollar appreciates against expatriates’ home country’s currencies, there’s a tendency for expats, especially those in white-collar professions, to send more money.
Blue-collar workers are forced to send money every month, regardless of the exchange rate because they have dependents back home. THE PENINSULA
