UAE 'is the cheapest place in the world for remitting money'

30/01/2013 - Dubai Investment News Posted by Neil King
UAE 'is the cheapest place in the world for remitting money'

The World Bank has confirmed that the UAE is the cheapest place on the planet when it comes to remitting money.With so many expats moving to Dubai and other parts of the Middle Eastern country, it is important that they are able to transfer cash overseas without incurring huge costs.According to the World Bank, there is a high level of competition in the Gulf, which helps to keep remittance rates low, Emirates 24/7 reports.The organisation revealed that it costs less than three per cent of the overall transaction value to move $200 (AED 735) from the UAE to Pakistan and only slightly more to send funds to Sri Lanka and the Philippines.This is far lower than the global average of 8.96 per cent recorded in September 2012.It seems the Middle East is streets ahead of certain African countries, where remitting money can be an extremely costly affair."The most expensive sending markets of those surveyed are Tanzania, South Africa, and Ghana. The cheapest sending markets are those in the Gulf - UAE, followed by Saudi Arabia and Spain," the World Bank study stated.Focussing solely on the Gulf, it appears that the UAE has the edge over some of its neighbouring countries."The two cheapest sending markets in the survey are the Gulf countries of UAE and Saudi Arabia which, in Q4 2012, measured at 3.5 per cent and 4.7 per cent, respectively," the report added.With an incredible infrastructure, wonderful weather and plenty of job opportunities on offer, it is hardly surprising that so many foreigners have chosen to permanently move to the UAE.The favourable tax system means people can significantly enhance their earning potential by securing employment in cities like Dubai.It has quickly become a major global business hub and companies from all over the world are setting up new bases in the emirate all the time, which is obviously very good news for the UAE's labour market.