Gulf expat workers send home 100 billion: report

(MENAFN- Arab News) KUWAIT CITY: Foreigners working in the Arab states of the Gulf sent more than $100 billion in remittances to their home countries last year an economic report showed.
The figure was twice as high as remittances in 2010 an indication of strong growth the head of economic research at Kuwait Financial Center (Markaz) Raghu Mandagoathur said in the report.
The remittances are estimated at 6.2 percent of the combined GDP of the six GCC states of $1.6 trillion the report said citing IMF and World Bank figures.
In comparison foreigners in the US and Britain sent home just 0.7 percent and 0.8 percent of GDP respectively it said.
Saudi Arabia topped the list with its estimated 10 million expats sending home $44 billion followed by UAE with 29 billion.
Remittances from Kuwait and Qatar were $12 billion and $9.5 billion respectively while smaller transfers were made out of Oman and Bahrain the report said.
Around 25 million expats live in the Gulf Cooperation Council states Bahrain Kuwait Oman Qatar Saudi Arabia and the UAE.
The majority of Gulf expatriates originate from India Egypt the Philippines Bangladesh and Pakistan as well as Indonesia Sri Lanka and Yemen.
The report attributed the high level of remittances to curbs applied by GCC states on foreign ownership and investment.
And unlike in Western countries foreigners have no hope of acquiring citizenship in GCC states regardless of the duration of residence.
The report advised GCC states to encourage expatriates to invest by launching specialized services and opening up their markets to foreign residents especially the real estate sector.