Page 95 - AAE PR REPORT - AUGUST 2025

8/7/25, 10:12 AM UAE-based Indians rush to send money home as rupee nears record lows
Inward remittances from the UAE are estimated to have exceeded $20billion in 2024. Supported by a robust labour
market for Indian workers and favourable exchange rates in key periods, the remittance trend has continued into 2025.

Industry sources indicate that in the first half of this year, remittance flows from the Gulf — particularly the UAE — have
remained strong, underpinned by higher oil prices, stable employment, and steady demand for skilled and semi-skilled
labour.

The rupee’s latest depreciation is likely to provide an additional lift in the second half of the year, as senders seek to lock
in better rates. Currency analysts note that for every dirham remitted now compared with rates earlier this year, recipients
in India can get several hundred rupees more on larger transfers.

This has encouraged expatriates to advance planned remittances, pre-pay family obligations, or channel extra funds into
investments and savings back home.

The UAE’s remittance industry is highly competitive, with dozens of exchange houses and banks offering both physical
and digital transfer services.

Digital platforms have grown rapidly, capturing a growing share of transactions with instant transfers and rate alerts.
Al Ansari Exchange, which operates one of the UAE’s largest remittance networks, says it has seen a marked increase in
digital remittances in particular during the latest rupee slide.

While the weaker rupee benefits expatriates sending money home, it reflects underlying challenges for India’s economy.
The combination of trade imbalances, foreign capital outflows, and global market volatility continues to pressure the
currency.

The RBI faces a balancing act: intervening enough to curb excessive volatility while preserving foreign exchange reserves
and allowing the currency to adjust to market conditions.
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