Qatar – 88% of Population are Expatriates
Qatar is home 2.8 Million
population with more than 88% of population comprising of expats with India,
Nepal, Philippines, Bangladesh, Sri Lanka, Egypt and others being key source
countries. In 2019, outward remittances were recorded at 6.5% of total GDP of
country with India being the prominent corridor of outward remittance
transactions. During the period of 2013-19, there has been a multi-fold growth
in expat population of select countries, which have contributed immensely to
the growth in international remittances of country.
During 2016-19, the International
Remittance Industry in Qatar increased from QAR xx Mn to QAR xx Mn,
growing at a CAGR of xx%. During 2019-20, industry size declined by xx% due to
pandemic of COVID-19 and return of migrant workers to their home countries.
Given high employment of expat
population, it is no doubt that outbound remittance flows contribute >95% to
industry with India, Nepal and Philippines being the largest corridors.
Overview of
Outbound Remittance Industry
Given the high cost of sending
money back home, customers are generally incurring high transaction size to
save on transaction fees again. In the past 4 years, industry has also
witnessed a decline in average revenue per transaction owing to technological
innovations, entry of vertical players and low-cost positioning of few exchange
houses.
Correspondent banking networks
remain the foremost choice of partnership of local exchange houses while for
non-prominent corridors, exchange houses tie up with third party money
operators and global MTOs to facilitate transactions. While, direct to account
transfers are most commonly used, analysts at Ken Research expect a decline in
cash pickup transfers due to focus on digitalized payments of countries across
world.
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Competitive
Landscape of Industry PLAYERS
The industry is dominated by
exchange houses catering to the large chunk of blue collar workforce which are
unable to open bank accounts in Qatar. As of June 2021, there were XX exchange
houses in Qatar operating via a network of XX branches across Qatar.
It was interesting to note that
there were no supernormal benefits of early starters in the industry and firms
majorly compete on the basis of exchange rate offered coupled with level of
quality services offered (same day credit, cash pickup service etc).
Cross-comparison
Among top Exchange HouseS
Being a commodity-type industry
with competitive prices being a pre-requisite, firms are generally aiming to
drive volume of transactions via branches to adhere to financial and profitability
goals of the exchange. It was analyzed that XX monthly outbound transactions
would lead to a break-even at a branch level. Further, top 5 players
contributed XX% market share to the industry size during June 2021.
The extent of partnerships with
correspondent banks and third party money operators including Global MTOs also
affect the choice of customer for selection of exchange house. For instance, Al
Jazeera Exchange employs staff of IME Nepal within its branch to execute
transactions of Nepal Corridor, Sewa Money Transfer (Nepal correspondent) has
partnered with Eastern Exchange to facilitate transactions.
For More
Information, refer to below link:-
Qatar
Central Bank AML Guidelines | Future
Outlook Remittance Qatar
Related
Reports
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing &
Communications
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