n the early 2000s, the total outbound remittances from the Gulf Cooperation Council (GCC) countries—Saudi Arabia, the UAE, Kuwait, Oman, Bahrain, and Qatar—amounted to $25.77 billion. By 2022, this figure had surged to USD 120.78 billion (see infog for detailed breakdown), cementing the region as the global leader in outward remittances. Even when considered individually, Saudi Arabia and the UAE ranked 2nd and 3rd globally, following only the United States.

The high outbound remittance flows from the GCC are primarily fuelled by its large expatriate population. The region is home to approximately 35 million migrant workers, representing nearly 10% of the global migrant workforce. These expatriates, hailing predominantly from low- and middle-income countries (LMICs) such as India, Jordan, Egypt, and the Philippines, are essential to the economies of their host countries.

In 2022, the total value of remittances sent to LMICs was estimated at $626 billion, reflecting a nearly 5% increase from the previous year. India alone received USD 100 billion, topping the list of recipient countries. A report by Mastercard on Borderless Payments for 2021/22 highlighted that 66% of UAE respondents had made more cross-border transactions in 2022, with over half stating that their families back home rely heavily on this financial support.

For many families in LMICs, remittances are a lifeline, providing for basic needs such as food, education, and healthcare. According to the World Bank, remittances are the largest source of external finance for LMICs, surpassing foreign direct investment and government aid.

The remittance market in the GCC has witnessed significant growth, driven by digital innovation and evolving consumer preferences. Digital remittance service providers such as Western Union, Arab Exchange, and newer entrants like Ersal, Beyon Money and Lulu Exchange have gained traction, offering faster, more affordable, and more convenient ways to transfer money. The adoption of mobile wallets, digital payment platforms, and partnerships with fintech companies has also expanded the reach of remittance services, making it easier for expatriates to send money home.

This digital transformation has created a dynamic and competitive market. While established players dominate the sector, there is ample room for new entrants to capitalise on the demand for seamless and cost-effective cross-border transactions. Innovative business models, such as blockchain-based remittances and peer-to-peer transfer platforms, present significant opportunities for growth and differentiation.

Despite global economic uncertainties, the GCC remittance market is poised for continued expansion. Although MENA remittance dropped by nearly 15% in 2023 due to declining wages, migrant workers often maintain or even increase their remittance flows during economic downturns or crises in their home countries. For instance, the World Bank noted that remittances constituted 12% of Haiti’s GDP in 2011, a year after the devastating earthquake, as migrant workers absorbed income losses by reducing their own expenses rather than cutting remittances.

With a robust expatriate-driven economy, a supportive regulatory environment, and ongoing advancements in digital payments, the GCC region remains a critical hub for remittances. As the market continues to evolve, there is significant potential for new players to enter and thrive, contributing to the development of innovative solutions that enhance the efficiency and accessibility of cross-border payments.