Over the fiscal year 2008-2009 GCC remittances to Egypt totaled $4.155 billion
Egyptians who were working for GCC oil production firms have remitted over $4 billion (or Dh14.6 billion) to their homeland in 2008-2009. These amounts represent over half of Egypt’s inflow, as reported by a bank in Kuwait.
Kuwait itself remitted the biggest portion of those amounts out of all the Gulf Cooperation Council (GCC) nations. Next in remittance size was the UAE and Saudi Arabia, according to a study of the Egyptian economy by the National Bank of Kuwait (NBK).
The NBK stated that the workers in the GCC are an essential remittance resource for Egypt and that those three GCC nations contribute the bulk of that amount.
Remittances by the GCC (including Qatar, Bahrain and Oman as well as the three larger contributors) were $4.155 billion between July 1, 2008 and June 30, 2009, which covers the Egyptian fiscal year.
It was generally accepted that most of the Egyptian migrant employees are found in Kuwait, with Saudi Arabia following. Another area with a high concentration of Egyptian workers is the UAE, which had approximately 100,000 at the close of 2009.
Further breakdowns calculated that Kuwait/Egyptian workers remitted about $1.594 billion over that fiscal year period and that UAE/Egyptian workers were responsible for around $1.38 billion.
Egyptian workers in Saudi Arabia remitted $976 million while Egyptians in Qatar were responsible for $141 million.
The amount remitted from migrants working in Bahrain and Oman was much smaller, amounting to only $36 million and $28 million respectively.
The remittances made from the GCC states to Egypt and nations across the Arab world are important and a major source of cash for those nations. The remittances have also been instrumental in their support for the growth of the economy.
In total, the 10 million Arab workers and other expatriates found in the GCC remitted a total of $40 billion in 2008, which was up almost 31 per cent from the year before, when remittances totaled $30.5 billion.
It was expected that those remittance amounts would slow in 2009 due to the global economic panic of 2008 and the drop in crude prices that followed, as reported by an investment bank in Kuwait. They also projected that those amounts would increase this coming year.
Global Investment House considered World Bank data and stated that rising crude prices and the increasing confidence of investors were good signs of economic recovery in the GCC. That recovery would then give remittances a boost in 2010, affecting the entire Arab region in a positive way.Paul Holdsworth, Staff Writer, Gulf Jobs Market News