By: Mahmoud Gamal
Dubai – Mubasher: It is likely that the value and volume of remittances in the UAE will increase ahead of the Expo 2020, Sudhesh Giriyan, chief operating officer (COO) at Xpress Money, told Mubasher.
He added that the mega event will raise the number of available job opportunities, which will be “welcomed by expats across the globe who are looking towards the UAE for better career prospects,” he said in an exclusive interview.
This rise in opportunities will support the positive sentiment towards the UAE’s economy and the remittances segment, he added.
Below is Mubasher’s exclusive interview with UAE-based Xpress Money’s COO Sudhesh Giriyan.
What are your expectations for the remittances industry?
Sudhesh Giriyan: 2017 was a good year for the remittance industry and we, too have seen a significant growth in our business, in line with the overall increase in outward remittances. The outlook for 2018 remains positive as we expect this growth trend to continue in the remittance sector. The run-up to Expo 2020 will see a surge in job opportunities, which will be welcomed by expats across the globe who are looking towards the UAE for better career prospects. More job opportunities contribute to the positive sentiment towards the economy and the remittance sector.
The industry is Witnessing huge competition, in your opinion are there new companies entering the sector?
Sudhesh Giriyan: The industry is witnessing a paradigm shift towards fintech. Many fintech companies are offering platforms for seamless, cross border & instant payments. We are not looking at these companies as competition but are collaborating with them to offer the best possible services and products to our customers.
What are the future development and expansion plans of the company, externally and internally?
Sudhesh Giriyan: African region is one of the fastest growing remittance sector’s. Xpress Money is planning to expand its network in the region with large pan-African bank partnerships. The brand currently offers mobile wallet money transfers to 5 countries in Africa and plans to expand to 5 more countries in Q2. With its recent associations with TerraPay and Huawei, Xpress Money has the potential to reach out to over 100 million people in the continent.
The impact of VAT implementation on the UAE Economy, specifically remittance industry?
Sudhesh Giriyan: As the UAE government is trying to reduce its dependency on the revenue from oil, the implementation of VAT has been welcomed by all industries in the country. As for the remittance industry, VAT is only applicable on the remittance fees and not on the amount being remitted. Therefore, the impact of VAT is negligible.
Generic overview of currency stability, currently. Are there any negative factors affecting the stability of currencies?
Sudhesh Giriyan: The UAE Dirham has been pegged at the US dollar at a fixed rate of AED 3.6725 to $1 which is important for the economic stability of the country. Other currencies like the GBP, INR, Filipino Peso, Pakistani Rupee have been witnessing fluctuations throughout 2017.
Government/political unrest in countries, monetary policies, strengthening of the dollar, etc. are some of the factors that impact the stability of currencies.
