According to a recent study, 76% of UAE consumers expect more international money transfers in the next year

· New research from Western Union examines the views of consumers in the United Arab Emirates on current and future money transfer needs and options

Consumers expect to send or receive more money in the next 12 months

46% of consumers will prefer multi-channel international money transfers in the future

Dubai: Research by Western Union shows that UAE nationals and residents can expect more international money transfers in the next 12 months. Exclusive data shows that 76% of consumers who send money and 75% of those who receive it expect to send and receive more money over the next year.

The study, which included more than a thousand citizens and residents of the United Arab Emirates who send and receive money across borders, examined the reasons, how and when to transfer money abroad. The results support Western Union’s recently announced Evolve 2025 (E25) strategy, which combines digital financial services with accessible high-value retail center services.

60% of clients consider family support to be the main reason for transferring money abroad, followed by saving for the future for 11% of them. The United Arab Emirates embraces many cultures, with expatriates from more than 200 nationalities living in their countries, and is considered one of the most competitive countries in terms of talent. It also includes residents of countries whose economies are the most dependent on remittances in the world.

One of the main factors in increasing the frequency and amount of remittances abroad is family sponsorship in the homeland. With the rising cost of living and international currency fluctuations putting additional pressure on personal finances, 74% of respondents said they need to transfer more money due to the high cost of living in their home country. And 71% said they take advantage of the opportunity to send more money when the currency of the country the money is being transferred to depreciates.

“Transferring money is often a personal decision,” said Jean-Claude Farah, head of Middle East and Asia Pacific at Western Union. “Data from Western Union shows that support from loved ones and family is one of the most common reasons for doing so. With the rising cost of living around the world, as well as the difficult economic situation, it goes without saying that family support is a priority when transferring money.”

Farah added: “The continued attraction of this diverse group of nationalities is testament to the UAE’s efforts to strengthen its position as a global partner and an attractive and influential economic hub. We believe these continued efforts will enable the UAE to remain at the forefront as one of the largest exporters of remittances in the world.” It is our duty as an institution to connect people with opportunity, as Western Union has supported consumers in the UAE for nearly 25 years and is fully committed to this.As we move forward on our journey of development and growth in the coming years, we will continue to provide an environment that advances financial inclusion and enables all communities in the country to achieve long-term economic success.

Cultures and family ties influence the frequency and flow of money

Sending money after receiving a salary, regardless of economic conditions (34%), or the needs of the family in the home country (32%), is the most common factor of money transfer and transfer intensity. The Western Union study also highlighted a third factor, as nearly a quarter (21%) of consumers said they send money during festive occasions such as Ramadan, Christmas, New Year and Diwali, as well as other special occasions such as birthdays, graduations and anniversaries.

On the other hand, it is interesting that 37% of consumers who receive money transfers in the UAE stated that the intensity and amounts of transfers are greatly influenced by celebrations and other special occasions, because they are more important than family needs (27%). or when the sender receives his salary (18%).

Farah continued: “We know that different populations have different needs, and the holiday season and special occasions are an example of this, as we witness an increase of approximately 6% each year in the volume of remittance transactions as these occasions approach. Western Union provides a variety of digital channels and retail centers to meet the diverse payment needs of millions of customers worldwide and we are confident that the trust we have gained from consumers in the UAE and globally enables us to help millions of people contribute to society.”

A tech-savvy population demands a range of options in the future

When it comes to how they send and receive money in the future, consumers want to have a variety of choices. A Western Union study shows that 42% currently send money across borders exclusively through digital channels. On the other hand, 46% would like to be able to choose how to send their money in the future, be it cash or digitally.

Remittance recipients are of the same opinion, 43% of them currently receive money only through digital channels. In the future, 57% want to be able to choose between digital channels and retail centers when receiving their money.

Those who do not use digital channels said the main barrier preventing them from sending or receiving money online is their preference for face-to-face interaction, followed by trust, as well as process or user experience.

Farah concluded: “The survey results show that while most consumers primarily prefer digital channels, many would like to be able to choose between digital channels and retail centers according to their needs. In both cases, trust in online services remains extremely important and we, as the sector must act to help consumers.” Our goal is to ensure that more people can meet their financial needs, regardless of their geographic location, culture or economic status.”

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About Western Union

Western Union (NYSE: WU) is a global leader in cross-border money transfers and multi-currency payments. Western Union’s platform provides seamless cross-border flows, and its leading global financial network connects more than 200 countries and territories using approximately 130 currencies. We connect consumers, businesses, financial institutions and governments through one of the most extensive networks in the world, with access to billions of bank accounts, millions of digital wallets and cards, and an extensive global network of retail centers. Western Union also connects the entire world to provide unlimited opportunities. For more information, visit: www.westernunion.com.

Western Union Research Study Overview

The research was commissioned by Western Union Censuswide, which surveyed 1,003 consumers aged 18 or over who send or receive international money transfers to the UAE between 31 October 2022 and 8 November 2022. Censuswide is committed to and employs its members as a market research association based on the principles of ESOMAR.