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The Total Remittance Flow to Middle East and North Africa Grew 4.85% in 2010 to USD 37.70 Billion
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2. TABLE OF CONTENTS
1. Money Transfer Market
1.1. Global Market Overview
1.2. Global Remittance Industry Performance and Size
1.3. Flow of Remittances
1.3.1. Top recipient countries
2. Remittance Industry Analysis by Geography
2.1. Remittance Industry in Europe
2.1.1. Eastern Europe
2.1.2. Western Europe
2.1.2.1. The UK
2.1.2.2. Germany
2.2. Latin America and the Caribbean
2.3. The US
2.4. Asian Regions
2.5. Middle East and North Africa
3. Industry Trends and Developments
4. Future Prospects
5. Growth Drivers
5.1. Rising immigrants
5.2. Role of Developing Countries
5.3. Acquisitions for geographical expansion
5.4. Mobile Money Remittance market
6. Competitive Threats to Remittance Market
7. Competitive Landscape
8. Company Profile
8.1. Western Union
8.1.1 Business overview
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3. 8.1.2. Financials
8.1.3. Business Strategies
8.2. MoneyGram International
8.2.1. Business Overview
8.2.2. Financials
8.2.3. Business Strategies
8.3. Euronet Worldwide (Ria)
8.3.1. Business overview
8.3.2. Financials
8.3.3. Key Strategies
9. Appendix
9.1. Research Methodology
Data Collection Methods
Approach
9.2. Definitions
9.3. Abbreviations
9.4. Disclaimer
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4. LIST OF FIGURES
Figure 1: Industry Value Chain Analysis
Figure 2: Clearing System of Money Transfers
Figure 3: Global Remittance Market (2006-2011)
Figure 4: Remittance Flow to Developing Countries (2006-2011)
Figure 5: Recipient Countries of Remittances from the EU (%) in 2010
Figure 6: Remittance Outflows from Eurozone (2009&2010)
Figure 7: Eastern European Top Remittance Recipients Annual Disposable Income (per
household) in 2010
Figure 8: Remittance Inflow and Outflow in the UK (2006-2009)
Figure 9: Remittance Inflow and Outflow in Germany (2006-2010)
Figure 10: Remittance Flow to Latin America and Caribbean (2006-2010)
Figure 11: The US Remittance Inflow and Outflow (2006-2010)
Figure 12: Remittance Inflow to India (2007-2010)
Figure 13: Global Money Remittance Market Forecast (2011-2016)
Figure 14: Remittance Flow to Developing countries forecast (2011-2016)
Figure 15: Leading Immigrations Countries Worldwide by Number of Immigrants in 2010
Figure 16: Leading Emigration Countries in 2010
Figure 17: Remittances to developing countries in % (2006-2011E)
Figure 18 : Major MTOs-Number of Agent Locations in 2010
Figure 19: Western Union Revenues (2006-2010)
Figure 20: MoneyGram Revenues (2006-2010)
Figure 21: Euronet (Ria) – Money Transfer Revenues (2008-2010)
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5. LIST OF TABLES
Table 1: Remittance Flow to Developing Countries (by Region) (2006-2011)
Table 2: Top recipient countries (2006-2010)
Table 3: Outflow of Remittances from the EU
Table 4: Remittance Inflow to Eastern European Countries (2009&2010)
Table 5: Outflow of Remittances from the EU Member States (2007-2010)
Table 6: Migrant Worker’s Income Change in the US (%) (2009 & 2010)
Table 7: Worldwide Leading Money Transfer Agents Description
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6. GLOBAL REMITTANCE INDUSTRY PERFORMANCE
AND SIZE
During pre crisis period, in many developed countries sharp rise in immigration has been
noticed with the effect of globalization and growing educated population. In 2010, global
remittance flow has reached USD ~ billion at a growth rate of 4.33% after showing a
negative performance in 2009. Remittance inflow to
In 2010, global remittance
developing countries also grew by 5.27% in 2010 to USD ~
flow recorded 4.33% billion result of recovering economy in various parts of the
growth rate world compared to previous year. In year 2011, global
remittance flow recorded only 3.00% growth from 2010
level. On the other hand, a positive growth in global remittance flow was supported by
improving economies in some of the developing countries.
Figure: Global Remittance Market (2006-2011)
USD Billion
2006 2007 2008 2009 2010 2011
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7. FLOW OF REMITTANCES
During economy crisis, in spite of recording negative performance in 2009, remittance inflow
to developing countries worked as an extra source of finance
2.88% growth in remittance
by reaching USD ~ billion. In 2010, increase in remittance
flow to developing
countries have been
inflow was the outcome of recovering economies in various
recorded in 2011 parts of the world. In 2011, concerns such as European debt
crisis, sovereign financial crisis and slow growth in the US
are leaving an inverse impact over the remittance inflow to developing countries. Only 2.88%
growth in remittance flow to developing countries has been recorded in 2011 and it is
expected to grow at a slow rate in 2012.
Figure: Remittance Flow to Developing Countries (2006-2011)
USD Billion
2006 2007 2008 2009 2010 2011E
Table: Remittance Flow to Developing Countries (by Region) (2006-2011)
2006 2007 2008 2009 2010 2011E
East Asia and Pacific
Europe and Central Asia
Latin America and Caribbean
Middle-East and North Africa
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8. TOP RECIPIENT COUNTRIES
In terms of remittance inflow, India and China is the largest receiver worldwide. While other
countries-France, Germany, Bangladesh, Belgium and Spain also holds a significant share in
terms of remittance inflow. Remittance outflow was highest in the US, Saudi Arabia,
Switzerland, Russia, and Germany.
Table: Top recipient countries (2006-2010)
Remittances Remittances Remittances Remittances Remittances*
Country 2006 2007 2008 2009 2010
Israel
India
China
Philippines
Mexico
Poland
Bangladesh
Nigeria
Pakistan
Morocco
Vietnam
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9. REMITTANCE INDUSTRY ANALYSIS BY GEOGRAPHY
REMITTANCE INDUSTRY IN EUROPE
Global financial crisis affected political, social and economy environment in European
countries which caused fall in per capita expenditures. Many companies incurred losses
which led to job cuts and also a drop in outward remittance, registering almost 20% decline
in 2009. Remittance inflow to EU countries also fell by
Spain is the EU’s largest 14% during the year. Spain is the EU’s largest remitting
remitting country accounting for country accounting for 24% of total remittance to non
24% of total remittance to non EU countries, closely followed by Italy, Germany,
EU countries France and Netherlands. These five countries hold
49.79% of the total remittance outflow from EU to non-
EU countries; although there is a sharp fall in the amount remitted by these countries in the
recent past.
Table: Outflow of Remittances from the EU
2006 2007 2008 2009 2010
Total outflow of workers' remittances
Intra-EU flows
Extra-EU flows
Table: Outflow of Remittances from the EU Member States (2007-2010)
Countries 2007 2008 2009 2010
Spain
Italy
Germany
France
Netherlands
Greece
Austria
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10. Portugal
Czech Republic
Belgium
Lithuania
Romania
The year 2010 brought hope with recovering economy and positive outlook for job prospects.
During the year remittance inflow grew 4.20% to USD ~ billion but still there were many
countries in the region struggling to recover.
EASTERN EUROPE
Developing economy structure in Eastern Europe reflects improving job prospects, education
level and standard of living. Many Eastern European residents moved to other developed
regions to take the benefit of salary hike and better job opportunities; resulting into increased
remittance inflow to Eastern Europe which became an important source of income for the
residents. In 2009, percentage of flow showed a decline but accounted for an important
source of income.
Figure: Eastern European Top Remittance Recipients Annual Disposable Income (per
household) in 2010
USD
Ukraine Serbia Romania Russia Poland
In 2010, countries like Moldova and Serbia accounted for the highest contribution of
remittance to country’s economy 22% and 17% of GDP. In terms of remittance receiving
countries, Poland and Russia were the two largest countries in the Eastern European region.
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11. Table: Remittance Inflow to Eastern European Countries (2009&2010)
2009 2010
Poland
Serbia
Russia
Ukraine
Bulgaria
Hungary
WESTERN EUROPE
During recession some of the Bulgarian emigrants working in Belgium, France, Spain and
other parts of the Western Europe lost their jobs. According to the IMF, unemployment rate
in 2011-12 is expected to be 9.60% in the Euro Area and the major rise is expected to come
from Spain and the UK.
THE UK
The UK receives remittance from the US, Canada and Australian countries, taking its
remittance flow to USD ~ million in 2009. In terms of remittance outflow, developing
countries like India, Bangladesh, Pakistan and Nigeria receive a large amount of remittance
from the UK.
Figure: Remittance Inflow and Outflow in the UK (2006-2009)
USD Million
2006 2007 2008 2009
Inflow Outflow
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12. LATIN AMERICA AND THE CARIBBEAN
The global credit crisis and efforts to stabilize the market left an inverse impact over the sub-
regional remittance flows. From second half of 2010, region showed signs of recovery at a
very low growth rate. Industrial and economic changes took place in 2009, which affected
remittance flow as well, registering a decline of 2.73% from 2008 results.
Figure: Remittance Flow to Latin America and Caribbean (2006-2010)
USD Billion
2006 2007 2008 2009 2010
The region’s remittance industry showed a recovery in 2010 at a slow rate but the region is
yet to recover from the recession. During 2010 second quarter onwards, remittance flow
started improving and migrant workers started sending money to their home countries but this
fed away after the first quarter of 2011.
THE US
The year 2010 brought hope for migrants working in the US with rise in earnings by 1.37%
from previous year. A major portion of increase was noticed in female migrant workers,
indicating rising working women in the society. There is still uncertainty in the environment
which is blocking remittance flow to increase from its present level. It may take time to go
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13. back to normal stage of growth as many migrants are still covering up their losses and debts
incurred during 2008-2009.
Table 1: Migrant Worker’s Income Change in the US (%) (2009 & 2010)
Total Male Female
2009
2010
Figure: The US Remittance Inflow and Outflow (2006-2010)
USD Million
2006 2007 2008 2009 2010
Inflow Outflow
ASIAN REGIONS
Impact of recession was high in Central Asian countries due to dip in oil prices which
affected the overall economic growth. In 2010, South and East Asian remittance flow grew
slightly due to the effect of geographic diversity of their migrants. During 2009, remittance
inflow declined by 5.80% in India while country’s economy started recovering from the
fourth quarter of 2009 and showed good results in 2010.
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14. Figure: Remittance Inflow to India (2007-2010)
USD Billion
2007 2008 2009 2010
MIDDLE EAST AND NORTH AFRICA
Saudi Arabia (8.40%), UAE (3.90%) and Qatar (1.60%) are the largest source of remittance
in the region. From last several years, crude oil sector in the Middle East was providing
employment to the workers from other countries but in 2009, a sharp fall in crude oil prices
resulted into decline in the per capita income of the residents and remittance outflow of
migrants. The total remittance flow to Middle East and North Africa grew 4.85% in 2010 to
USD ~ billion compared to previous year.
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15. FUTURE PROSPECTS
The US, Russia and Germany are expected to continue to
By 2016 the global money
hold a leading position in the remittance market worldwide
remittance market is
despite a continuous fall in net immigrant’s population
expected to grow at CAGR
6.44%
from last three years (2009-2011). Once economy recovers
from the setback and settle its national debts, these
countries will start inviting people from different parts of the world to take the advantage of
low cost labor. By 2016 the global money remittance market is expected to grow at CAGR
6.44% (2011-2016) reflecting a slow growth compared to CAGR 8.04% in 2006-2011.
Figure: Global Money Remittance Market Forecast (2011-2016)
USD Billion
2011 2012 2013 2014 2015 2016
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16. Figure: Remittance Flow to Developing Countries Forecast (2011-2016)
USD Billion
2011 2012 2013 2014 2015 2016
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