In an interesting development, the Dubai government has introduced a scheme to help the expats receive the advantage of the soaring value of the country’s currency.
The Dubai Gold and Commodity Exchange (DGCX), under the Government of Dubai, has launched a scheme which allows sending more than Rs 2 lakh equivalent of UAE dirhams. According to the scheme, those who join it by paying 300 dirhams in advance are able to receive the benefit of the day’s exchange rate even if they pay the rest of the amount later. This will mainly benefit non-resident Indians (NRIs) as the rate of rupee is witnessing a down fall day by day. However, the money will reach the addressee only after paying the full amount and a fall in the exchange rate during the period will not affect the customer. But, seven dirhams a month will be levied as service charges.
According to an official statement, those who reside outside UAE also can avail this benefit. The details of the scheme will be released through the investor clubs in Dubai, Abu Dhabi and Sharjah. DGCX is an initiative of the Dubai Multi Commodities Centre (DMCC), Financial Technologies (India) Limited and the Multi Commodity Exchange of India Limited (MCX). It commenced trading in November 2005, as the region’s first commodity derivatives exchange.
The volume of annual remittances by expats in GCC countries stand at $120 billion. It is estimated that Saudi Arabia is the topper with $48.3 billion leaving the country in 2012, a figure which is expected to increase by 20 per cent in 2013.
India is the largest recipient of remittances in the world, receiving $49 billion annually and $6.2 billion, or 12 per cent of that amount, comes from the UAE. The UAE’s expatriate employees had remitted 11 per cent more dirhams in 2010 than they did in 2009, as per official data. According to the annual report of the Central Bank of UAE, employees’ transfers abroad (remittances) increased from $9.5 billion (35 billion dirhams) in 2009 to $10.5 billion (38.8 billion dirhams) in 2010.