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Tuesday, May 11, 2021

World Bank: Qatar residents sent far less money abroad in 2014

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Photo for illustrative purposes only.
Photo for illustrative purposes only.

Remittances from Qatar fell a whopping 10 percent last year, from $11.28 billion in 2013 to $10.01 billion in 2014, according to newly released World Bank figures.

The decline follows four years of growth in Qatar remittances, and comes at a time when people are sending less money abroad around the world, the financial center has said.

Compiled from World Bank data.
Compiled from World Bank data.

Citing exchange house officials, the Peninsula reports that the drop is due to Qatar’s rising cost of living:

“House rents and children’s school fees as well as food prices have all gone up here considerably in recent times,” said a senior exchange house official.

“This has reduced the disposable income of expatriates drastically, which has, in turn, dented their ability to send money home,” he said, asking not to be named. “Remittances did not grow in proportion to the population increase last year.”

Residents may also be spending more of their money inside of Qatar due to a demographic shift in the expat population.

Compiled from World Bank data.
Compiled from World Bank data.

While the country’s foreign workforce is still dominated by men who come to the country alone, some have suggested that it’s in the country’s economic interest to allow more families to move here.

This could spur expats to spend more money on goods and services locally, rather than sending their earnings abroad, especially as more retail and leisure offerings open up.

Notably, last year’s Qatar Central Bank figures for 2014 were more optimistic, but still showed a decline in remittances from QR40.55 billion ($11.14 billion) to QR40.37 billion ($11.1 billion).

Forecast

According to the World Bank, falling oil prices hit countries like Russia fairly hard last year. But Gulf countries seem unscathed for now:

“The fall in oil prices does not appear to have reduced remittances from Gulf Cooperation Council (GCC) members, especially to India, Bangladesh, Nepal, Pakistan, and several countries in the Middle East and North Africa.

The outlook, however, is uncertain. The substantial financial resources and long-term infrastructure development plans of the GCC countries imply that they will continue to demand migrant workers.3 However, remittance flows could decline if the oil price were to remain low for a few years.”

Thoughts?

6 COMMENTS

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MIMH
MIMH
6 years ago

Qatar is getting better at keeping their money within the country, despite the rise in population.

The Reporter
The Reporter
6 years ago

“some have suggested that it’s in the country’s economic interest to allow more families to move here”. What were they smoking at the time? Can’t remember recently seeing any statistics on wage rises to compensate for inflation in Qatar……………….

MIMH
MIMH
6 years ago
Reply to  The Reporter

They don’t want to pay you more, they want to see rises in rental and other basic so the money you are paid stays in the country. Keeps the Qatari business owners rich

sicti
sicti
6 years ago
Reply to  MIMH

Rich is such a small word, extremely rich is more like it.

johnny wang
johnny wang
6 years ago

Looks like something must be seriously wrong somewhere. If only the countries that bought their things from out here decided to work on the same lines then things might really get messy

Marco
Marco
6 years ago

Salaries have not changed but living expenses have increased. So less money can be sent home.

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