Growth of non-oil private sectors, improvement in economic conditions, steady money transfer to Asian countries and increasing number of banks & exchange branches have driven the remittance industry in Kuwait.
Kuwait is well-known as a leading cosmopolitan hub in the world with wide range of investment and job opportunities, due to which it has been a major attraction for job seekers from South Asian countries. Presence of huge expat population in the country has resulted in high demand for remittance to send back money to native homes. Major contributors for boom in the remittance market in Kuwait include blue collar and white collar customers. These customers remit huge part of their salaries to support their families in their home countries. International remittance market in Kuwait had always been in a growth phase owing to rise in the number of expatriates resulting out of the job opportunities developed in the country every year. Later in the review period, the remittance market in Kuwait was unstable owing to the economic downfall of the country due to the falling oil prices but retention in oil prices and economic diversification have been strong support for remittance industry in Kuwait.
The internal migration rate in the country has also affected the domestic remittance in Kuwait. The citizens of Kuwait have been shifting from underdeveloped cities to developed cities for better job opportunities and higher wages in cities such as Al Ahmadi, Hawalli, As Salimiyah and others. Since 2015, the non-oil private sector business activities have displayed a tremendous growth in the country as the government has increased its focus on economic diversification. The bill payment industry in Kuwait has also witnessed tremendous growth with the increase in internet population and increasing dependability on e-payment wallets for bill payments. The increasing rate of internet population and the booming e-commerce market in the country have augmented the number of online purchases which thereby raised the online bill payments. With the growth of banks, exchanges, e-wallet operators and MTOs, the remittance industry in Kuwait has witnessed positive growth during the review period.
The report titled “Kuwait Remittance Market by Inbound and Outbound International Remittance, by Mode of Transfer (Electronic and Cash), by Channel (Bank and Non-Bank), by Bill Payment Methods (Cash, Credit/Debit Card/E-Wallet and Electronic Transfers), by Types of Payment (Grocery Bills, Utility Bills, Fuel Bills, DTH and Broadband Bills and Mobile Recharge Bills) and by Regions – Outlook to 2022” by Ken Research suggested that growth of bill payment market and increasing expat population in the country will majorly account for the overall transaction growth of Kuwait remittance market in next 5 years till 2022.
Ankur Gupta, Head Marketing