UAEXchange records 14% growth in volume

Remittance is emerging as a silver line in time of financial crisis as an exchange house records 14 per cent increase in business volume, said a top official of one of the leading networks of exchange houses.

"Global recession is affecting us all but individual remittances have stayed on the positive side and in fact our figures show an increase of 14 per cent in business," said Y Sudhir Kumar Shetty, COO and General Manager, UAEXchange.

Shetty attributes this increase to the very nature of individual's turning to savings in hard times rather than splurging.

"As you expect the unexpected, the tendency is to save rather than to spend and shop. This obviously translates into remitting most of the money that you have saved," said Shetty.

The UAEXchange last year recorded a phenomenal growth and their worldwide remittance was $14 billion (Dh51.3bn) in the year 2008.

Out of that around $4.7bn was to India.

"In the past three years we have seen record growth and have recorded 30 per cent growth year-on-year basis," said Shetty.

"Of course, this was attributed to the real estate projects, which were employing thousands of people. Certainly there has been a drop in remittance because of decline in development activities in the region. But despite that, favourable currency rates and other factors have kept the remittance industry not only above the surface but will post a growth," he adds.

The UAEXchange, which operates from 447 branches in 19 countries, is also swift certified "and is in fact the only non-banking organisation that is swift certified," added Shetty.

Last year, the company expanded its reach in the UAE with 12 more branches. It will not see the same pace of expansion but is expecting a positive growth this year as well.

"We may not witness the previous year's growth but the business will surely grow and expand.

"We are being cautious and intend to go relatively slow this year but will not slowdown in our efforts and intentions to support the industry and our customers," said Shetty.