The remittance industry in the UAE which is estimated around Dh55 billion flourished in 2015 despite over 50 per cent decline in oil prices. Remittances from the UAE are expected to cross $19.5 billion this year according to an industry specialist.

"In the coming years including next year we see durable growth potential for the UAE money exchange industry" LuLu International Exchange chief executive officer (CEO) Adeeb Ahamed told Khaleej Times during an interview.

"The global economy has showcased low to moderate growth due to falling oil prices fluctuating currencies and the political and economic environment across the world. But even amid the tough market scenario and challenges the money exchange industry has shown steady growth during 2015" Ahamed added.

The UAE has been at the forefront of the region in diversifying its economy into new sectors including tourism finance and infrastructure to reduce the dependence on oil.

"Despite falling oil prices most GCC states have announced plans for converting their countries into world-class hubs. This will further give a boost to the exchange business in the region" he said.

The UAE is the third largest market globally in terms of remittances after the US and Saudi Arabia.

Remittances from the UAE had risen by nearly five per cent to $19 billion in 2014 according to the World Bank. This was in tandem with growth in the international money exchange business which also jumped close to five per cent last year to reach nearly $585 billion in remittances globally.

"This year [2015] the increase in remittances in comparison with last year is likely to be around two to three per cent in the UAE since we haven't seen a major increase in the expat population" he said. The slight spike in remittances have been to Asian countries such as India Pakistan Bangladesh Nepal and the Philippines on account of their weakening currencies.

International migrants will send $601 billion to families in their home countries this year with developing countries receiving $441 billion. Prominent recipients are the major labour supplying countries such as Mexico India Philippines and Bangladesh among others according to the Migration and Remittances Factbook 2016 produced by the World Bank.

LuLu Exchange expansion

Ahamed said LuLu International Exchange had opened 19 new branches worldwide this year including a foray into Seychelles. "With six new branches in the UAE we have taken the total number of outlets here to 36. In terms of business we were able to maintain double digit growth during the year" Ahamed informed.

"There is further scope to expand our branch networks. with an increasing number of infrastructure projects being undertaken all over the UAE. Each emirate has earmarked separate projects in conjunction with their leader's long term-vision. The string of projects will facilitate job creation and lead to sourcing of experts and workers alike who are the key elements to the exchange business" he said.

Ahamed said the Ministry of Labour's decision to abolish a long-standing six-month ban on foreign workers will help boost the UAE economy as it marches ahead towards Vision 2021. The UAE has always been at the forefront in adopting labour reforms in the region and the new changes are proof of that Ahamed added.

There will be greater transparency between the employee and employers which will prevent exploitation of workers he said.

"All these are an indication of the increasing ease of doing business in the UAE. The UAE has long been one of the most preferred markets for expatriates due to its attractive work and living environment. The new labour rules will further enhance this position" he said.

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