Pakistan’s annual remittances down 14%, Saudi Arabia, UAE remain top contributors

People queue along a street to use an ATM bank machine in Rawalpindi on June 9, 2023. (AFP/File)
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Updated 10 July 2023
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Pakistan’s annual remittances down 14%, Saudi Arabia, UAE remain top contributors

  • Decline owed to political and exchange rate instability, analysts say
  • More people switched to informal money transfer networks like hundi

KARACHI: Remittances to Pakistan through legal channels declined by 14 percent or over $4 billion during the outgoing fiscal year amid political and exchange rate instability, official data and experts said on Monday, as Saudi Arabia and the United Arab Emirates remained top contributors of money sent home by Pakistani workers.

Pakistan received $27 billion during the outgoing fiscal year, FY23, compared to $31.27 billion the year before. In June 2023, $2.2 billion in remittances were recorded, according to data released by the State Bank of Pakistan (SBP) on Monday.

The cash-strapped South Asian nation struggled with low foreign exchange reserves almost throughout the fiscal year due to its inability for months to reach a staff level agreement with the IMF to unlock at least $1.1 billion under the lender's ninth review of a $6.5-billion Extended Fund Facility agreed in 2019. A day before the program expired, Pakistan secured a badly-needed $3 billion short-term financial package from the IMF last month, giving its economy a much-awaited respite as it teeters on the brink of default.

“Due to instability of exchange rates in the grey, open, and interbank markets, the flow of remittances through official channels has declined,” Tahir Abbas, Head of Research at Arif Habib Limited, told Arab News.

“The country remained in the grip of uncertainty related to the IMF program that has also played a critical role in the decline of remittances through official channels. Political uncertainty was another contributing factor.”

Pakistan receives more than half of its total remittances from labor markets in Saudi Arabia, the United Arab Emirates (UAE) and other Gulf countries where more than 80 percent of Pakistan’s overseas labor force is employed.

However, remittance from Saudi Arabia, UAE and other gulf countries also declined by 16.9% to $6.4 billion, 20.5 percent to $4.6 billion and 12 percent to $3.1 billion, respectively, during the outgoing fiscal year, FY23, according to SBP data.

“The key reason for the decline from Gulf countries was the activation of the grey market in Pakistan after the exchange rate crisis,” Farhan Mahmood, Head of Research at Sherman Securities, told Arab News.

An ongoing political crisis coupled with uncertainty related to the $6.5 billion IMF program had created three exchange markets for currency transactions, characterized by significant disparities between buying and selling rates in all three markets.

In the official interbank and open markets, the exchange rate gap had widened by over Rs22 in May this year. In the grey or illegal market, the disparity in exchange rates was even greater compared to the open and interbank markets, according to the Exchange Companies Association of Pakistan (ECAP).

“To benefit from the high exchange rate, people remitted through hundi and hawala channels where rates were comparatively good,” Mahmood said, referring to informal money transfer networks that allow customers to rapidly move large sums across borders outside the scrutiny of regulators and largely without an easily traceable paper trail. Funds received through these methods are not counted towards a country’s official remittances.

“It does not mean that the inflows have reduced, it only reflects that the business has shifted to the grey market.”

Mahmood said remittance inflows from countries apart from Gulf nations had not declined.

After the approval of the new $3 billion program by the IMF, the exchange gap between the open and interbank markets had narrowed while “the grey market at present is non-existent,” Mahmood said.

“Going forward, remittance inflows through official channels will increase after the IMF program and political stability in FY24,” Abbas added.


Most Gulf stocks subdued as Trump steps up tariff threats

Updated 13 July 2025
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Most Gulf stocks subdued as Trump steps up tariff threats

  • Saudi Arabia’s benchmark index fell 0.2%
  • Qatar’s benchmark index finished flat in a calm session

DUBAI: Gulf equities ended mixed on Sunday, with stocks drifting in a tight range during a quiet trading session as investors sought clarity after US President Donald Trump escalated his global trade war. 

Trump threatened on Saturday to impose a 30 percent tariff on imports from Mexico and the European Union, following the announcement of a 35 percent duty on Canadian imports, both starting Aug. 1. 

He also proposed a blanket tariff rate of 15 percent-20 percent on other countries, an increase from the current 10 percent baseline rate. 

Saudi Arabia’s benchmark index fell 0.2 percent, as mixed sector performance kept the market subdued ahead of key earnings. 

Utilities heavyweight ACWA Power declined 2.4 percent as its rights issue offering ended. 

Qatar’s benchmark index finished flat in a calm session, with telecom giant Vodafone Qatar gaining 1.2 percent. 

Investors remained cautious as the US Federal Reserve is widely expected to keep interest rates unchanged as it waits to see the impact of tariffs on price pressures. 

With Gulf currencies pegged to the US dollar, the Fed’s decisions on interest rates impact the region’s monetary policy. 

Outside the Gulf, Egypt’s blue-chip index dropped 0.8 percent, hit by a 1 percent fall in Commercial International Bank. 

Egypt’s central bank kept key interest rates unchanged on Thursday, pausing a trend of rate reductions despite inflation rates easing. 


Syria signs $800m agreement with DP World to bolster ports infrastructure

Updated 16 min 35 sec ago
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Syria signs $800m agreement with DP World to bolster ports infrastructure

  • Deal focuses on developing multi-purpose terminal at Tartus
  • DP world CEO pledged to make Tartus ‘one of the best ports in the world’

DAMASCUS: Syria signed a $800 million deal with UAE-based company DP World on Sunday to develop the port of Tartus, state media reported, as the new authorities continue their efforts to support post-war reconstruction.

“In the presence of President Ahmed Al-Sharaa, an agreement was signed between the General Authority for Land and Sea Ports and DP World, valued at $800 million, as a strategic step aimed at enhancing port infrastructure and logistics services in Syria,” state-run news agency SANA said.

The agreement follows on from a memorandum of understanding signed between the two sides in May.

Following the signing of the deal, DP World CEO Sultan Bin Sulayem said Syria’s economy had “significant assets, including the Port of Tartus, which represents an opportunity to transport and export many Syrian industries.”

In a statement also shared by state media, he pledged to make Tartus “one of the best ports in the world.”

DP World operates dozens of marine and inland ports and terminals globally, particularly in Asia, Africa and Europe

The Syrian civil war devastated the country’s infrastructure, and the new authorities hope to use the lifting of Western sanctions to attract investments and fuel reconstruction efforts.

Qutaiba Badawi, head of the General Authority for Land and Sea Ports, said the parties were “not merely signing a technical agreement, but we are laying the foundation for a new phase of field and maritime work in Syria, repositioning ourselves on the regional and international economic map.”

In May, Damascus signed a 30-year contract with French shipping giant CMA CGM to develop and run the port of Latakia.

That same month, Syria signed a $7 billion energy deal with a consortium of Qatari, Turkish and US companies as part of efforts to revive its crippled power sector.


Closing Bell: Saudi main index ends lower at 11,253

Updated 13 July 2025
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Closing Bell: Saudi main index ends lower at 11,253

  • Parallel market Nomu edged down 41.88 points to close at 27,437.62
  • MSCI Tadawul Index fell 0.19% to 1,442.43

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, shedding 24.01 points, or 0.21 percent, to close at 11,252.90.

The total trading turnover on the benchmark index stood at SR4.04 billion ($1.08 billion), with 98 stocks advancing and 148 declining.

The Kingdom’s parallel market Nomu edged down by 41.88 points to close at 27,437.62, while the MSCI Tadawul Index fell 0.19 percent to 1,442.43.

The best-performing stock on the main market was SHL Finance Co., with its share price rising 9.98 percent to SR21.26. Al Sagr Cooperative Insurance Co. followed, gaining 6.47 percent to SR14.80, while Fawaz Abdulaziz Alhokair Co. climbed 5.80 percent to SR33.20.

Zamil Industrial Investment Co. recorded the steepest decline of the day, with its share price falling 2.75 percent to SR46.00.

On the announcement front, Almoosa Health Co. said it signed an SR192 million contract with MASAH Specialized Construction Co. to carry out preliminary construction and foundation work for the Almoosa Specialist Hospital project in Al-Hofuf.

In a press statement, the company said the financial impact of the 14-month contract will be reflected after the completion of the hospital’s construction. The company added that there are no related parties involved in the deal.

Almoosa Health’s share price inched up 0.12 percent to close at SR165.00.

Sports Club Co. completed its retail offering ahead of its planned listing on the Kingdom’s main market. Saudi Fransi Capital, the lead manager, financial adviser, bookrunner, and underwriter for the IPO, confirmed the development.

According to a statement, 259,690 investors participated in the retail subscription period, with a final offer price of SR7.50 per share. Saudi Fransi Capital added that retail orders totaled approximately SR247.7 million, representing an oversubscription rate of 533.6 percent.


PIF launches Tasama to deliver world-class business services in Saudi Arabia

Updated 13 July 2025
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PIF launches Tasama to deliver world-class business services in Saudi Arabia

  • Company aims to support public and private sectors
  • It seeks to advance business services as a strategic sector in the Kingdom

RIYADH: Businesses operating in Saudi Arabia — including international firms setting up regional headquarters — are set to benefit from the launch of Tasama, a new integrated business services platform established by a subsidiary of the Public Investment Fund.

Tasama was created through the merger of the Business Incubators and Accelerators Co., previously owned by the Saudi Technology Development and Investment Co. or TAQNIA, with PIF’s Shared Services Center. The company aims to support both the public and private sectors, according to an official statement.

The launch forms part of PIF’s broader strategy to diversify the Saudi economy and deepen its collaboration with the private sector by accelerating the growth of local enterprises and easing the entry of global firms into the Kingdom’s business environment.

It also comes as PIF surpasses $1 trillion in assets, marking a major global milestone. According to Global SWF, the fund is now shifting focus from rapid expansion to a new phase defined by solvency, strategic discipline, and long-term sustainable returns.

“The company seeks to advance business services as a strategic sector in the Kingdom, and to contribute effectively to supporting economic diversification by providing support to strategic sectors,” said Mohammed bin Nasser Al-Jasser, CEO of Tasama.

Al-Jasser added that the company remains committed to “fostering innovation, empowering Saudi talent, and enhancing national competencies,” building on BIAC’s track record across public and private sector partnerships.

He further emphasized Tasama’s ambition to evolve the business services sector, positioning the firm as a “key partner in shaping its future and ongoing progress,” while contributing to the expansion of the Kingdom’s tech ecosystem and broader commercial landscape.

According to the statement, Tasama will offer a full suite of services aimed at boosting operational efficiency, supporting companies through their launch and growth phases, and assisting international firms in establishing their regional bases in Saudi Arabia.

The platform will provide end-to-end support, including accounting, human resources, and procurement services, along with access to digital tools, business incubators, and workspace solutions.

Tasama also plans to expand nationwide, with the goal of becoming the leading provider of business services across Saudi Arabia.

Earlier this month, Global SWF noted that the Kingdom’s sovereign wealth fund — which recently posted an 18 percent rise in assets under management to SR4.32 trillion ($1.15 trillion) in 2024 — is now focused on “solvency over scale” and “substance over show.”

This strategic pivot underscores a broader recalibration of Vision 2030’s investment engine, balancing domestic megaproject development with financial discipline, international outreach, and responsible capital deployment.


Oman tourism revenues hit $5.5bn in 2024

Updated 13 July 2025
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Oman tourism revenues hit $5.5bn in 2024

  • Tourism contribution to GDP rose to 2.7 billion rials
  • Government continues to adopt innovative marketing strategies

JEDDAH: Oman’s tourism sector contributed over 2.12 billion rials ($5.51 billion) to the Gulf country’s national economy in 2024, up from 1.75 billion rials in 2018, according to official data.

The latest figures from the National Center for Statistics and Information indicate that this increase reflects a compound annual growth rate of 3.2 percent, reinforcing the industry’s role as a key pillar in the sultanate’s economic diversification strategy.

The sector’s contribution to gross domestic product also rose to 2.7 billion rials, up from 2.3 billion rials in 2018, underscoring tourism’s expanding macroeconomic impact, according to the Oman News Agency.

European travelers significantly boosted Oman’s tourism sector in 2024, driving a 10.2 percent rise in hotel revenues during the first five months of the year, according to NCSI data released last July.

The country’s growing appeal among European tourists, alongside strong local and regional demand, reflects its broader strategy to diversify its tourism base and bolster the hospitality sector, in line with similar initiatives across Gulf Cooperation Council member states.

Minister of Heritage and Tourism Salim bin Mohammed Al-Mahrouqi said the growth in visitor arrivals, spending, and economic value reflects the result of focused and ambitious efforts by the ministry to promote Oman as a rich and diverse tourism destination, according to ONA.

He added that the latest indicators serve as a testament to the government’s economic diversification policies and effective inter-agency coordination that supports investment and accelerates project implementation.

Al-Mahrouqi also said that the ministry continues to adopt innovative marketing strategies, strengthen partnerships with the private sector, and develop offerings to enhance the overall visitor experience.

GDP growth forecast at 2.2% in 2025

The sultanate’s economy is forecast to grow by 2.2 percent in 2025, up from 1.7 percent the previous year, supported by a recovery in oil activities and steady non-oil sector expansion, according to the Ministry of Economy’s 2025 economic outlook.

Inflation is projected to rise modestly to 1.3 percent, up from 0.6 percent in 2024. Still, it will remain within the target range of Oman’s 10th five-year plan, aided by continued government subsidies and stable global commodity prices.

The ministry estimates GDP at constant prices will increase from 38.3 billion rials in 2024 to 39.2 billion rials in 2025. Oil activities are expected to rebound with 1.3 percent growth after a 3 percent contraction in 2024, while non-oil sectors are projected to grow by 2.7 percent.

Medium-term momentum is expected to continue through 2026 and 2027, bolstered by strategic projects and higher oil production, ONA reported.