Egyptian officials say remittances 'rose to historic high' in 2011

Remittances from Egyptians working abroad provide a steady source of income for the country. Above, a man talks to a worker at a currency exchange office in Cairo. [Asmaa Waguih/Reuters]

Remittances from Egyptians working abroad provide a steady source of income for the country. Above, a man talks to a worker at a currency exchange office in Cairo. [Asmaa Waguih/Reuters]

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Remittances from Egyptians working abroad rose significantly in 2011, continuing to provide the country a steady source of income, officials and analysts said.

"Data circulated by the [Egyptian] Central Bank indicate that remittances from Egyptians working abroad rose to a historic high in 2011, spiking from $12.5 billion in 2010 to $14.3 billion in 2011, with the vast bulk of remittances coming from Egyptians in Saudi Arabia," said Tareq al-Shafi, director of incoming remittances at a Cairo money transfer company.

Al-Shafi said incoming remittances are subject to strict Central Bank controls designed to inhibit funding of terrorist sources and money laundering. The remittances, even if transferred by way of a private money transfer company, take a compulsory path through the Central Bank so they can be regulated, he said.

Remittances are an important tributary to the Egyptian economy and a solid source of hard currency, according to Mahmoud Auf, former Egyptian ambassador to Saudi Arabia.

Auf announced during a ceremony on July 28th to mark the end of his service in Saudi Arabia that remittances from Egyptians in Saudi Arabia reached $8 billion in 2011, or around 60% of the country's total remittances that year.

This amount surpasses the income generated by the Suez Canal and tourism in 2011, he said, adding that the Egyptian community in Saudi Arabia swelled by about 150,000 new arrivals after the January 25 revolution.

'Essential component of national income'

Majed al-Mahmoud, head of the Workers Bureau of the Emigration and Egyptians Abroad Sector at the Ministry of Manpower and Emigration, said the actual volume of remittances may be higher than reported by the Central Bank, especially since many Egyptians use informal money transfer routes, including friends, acquaintances or relatives.

"Saudi Arabia is the largest contributor to the Egyptian national income through remittances, followed by the United States, Kuwait and the UAE," he said.

Dr. Yahya Salem, an economics professor at Cairo University, told Al-Shorfa that remittances from expatriate workers represent a solid financial source for many countries, including Egypt, which views expatriates working abroad as collectively representing an essential component of its national income.

"Egypt's labour force, which rose to prominence during the Gulf oil boom of the 1970s, is the most robust in the Arab world," he said, adding that the high unemployment rate and economic difficulties that beset the country after last year's revolution have driven many workers to seek higher paying jobs abroad.

Salem said last year's remittances from Egyptians in Saudi Arabia had an important impact.

"The latest figures have significant implications, especially since remittances from Egyptians abroad were among the factors that helped reduce the deficit in the balance of payments in 2011 as foreign exchange reserves declined," he said.

He said Egypt could bolster the economy by also focusing on savings and developing programmes that attract them.

"Savings are a treasure trove that will stimulate the Egyptian economy to an unprecedented extent. Moreover, the abundance of liquidity will enhance the value of the pound against the US dollar and limit the extent of borrowing in foreign currency," Salem said.

The government has already started to take steps to attract savings, such as making land available for industrial, construction and service sector investment. "This will channel more remittances to the Egyptian treasury and Egyptian banks," he said. "Subsequently, these factors will collectively help revive small- and medium-size enterprises, curb the rampant unemployment problem and increase the rate of economic growth."

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    حسني صالح

    2012-9-16

    We have witnessed the incidents that happened in Egypt since the rise of the revolution until today. It has greatly affected the various aspects of life in Egypt. These incidents affected positively and negatively. The first people who supported this revolution were truly affected by it. Therefore, we must know the importance of the money that is sent by the Egyptians who work abroad and how this money affects the life of the citizens and the economy. The direct impact was the deterioration of the economy, but life has to come back to normal again. The government must take care of the Egyptians who work abroad because they sacrificed to get this work and accepted to live away from their home and relatives, thus, I see how important the money that is sent by them on the Egyptian economy.

  • احمد عثمان عزاوي

    2012-9-16

    We are aware of the importance of the money sent by the Egyptians working abroad and its strong impact on the Egyptian economy. Therefore, the Egyptian Government must provide the Egyptians with all the services they need through their embassies and help them feel comfortable as they are in their own country. Moreover, they must be taken into consideration and must be served well because they suffered in the past and now they are the source of income which affects the Egyptian economy.

  • فايز محمد

    2012-9-16

    It has been a while since the new government became stable, but the Egyptian economy is still suffering and is still as weak as before, due to the small resources and products in Egypt, and because Egypt is considered a consumer country more than being a productive one. Therefore, the economy is generally weak and needs to be revived. The other truth, which is unknown to most Egyptians, is the role of the anonymous soldier who is always accused of being unaware of what is going on inside his country. However, if he did not know what is happening in Egypt, he would not leave his homeland searching for a living abroad and leaving his family because of such thing which is claimed that he is unaware of. Moreover, what is really unknown is the impact of the money that comes from the Egyptians who work overseas, the impact of having the currencies and the investments that are being made in Egypt. We all know for sure that after the revolution of anger that had started and toppled the former regime, there will be an effect in the economy of Egypt in general. The Egyptians working abroad must be treated properly by the Egyptian Government and there must be a sort of cooperation with them because their impact is powerful and big on the Egyptians’ economic life.

  • اسماعيل عبد الحميد

    2012-9-13

    The Egyptian economy has been affected and it has experienced a major slowdown and it has been affected considerably, leading to massive losses with the first sparks of the revolution in Egypt. Subsequently, the situation became worse as the revolution continued, lasting for several months, to the point that this has become very apparent as a result of the stalled activities in many sectors of the economy in the country, which has reflected negatively on the lives of the Egyptian citizens, who are in a situation where they are looking for a loaf of bread in order to eat. As such, the Egyptians have to overcome this crisis that is costing the country millions every day as a result of the unstable conditions in the country that have led to increasing social and economic problems, such as rising unemployment and inflation and poverty. However, there are those that want to participate with all their force without those inside the country knowing about this. Yes, we know very well how the Egyptian economy benefits from the Egyptian expatriates working abroad, and the amounts of money that are sent into the country, and the positive impact that this has on the Egyptian economy in terms of the influx of hard currencies into the country. All of this takes place because of the Egyptian expatriates that have left their country since a long time ago in search of their livelihood, which was not available to them in the past in Egypt due to the hardships that they were suffering from under the previous government and the ousted regime during thirty years of oppression and injustice.

  • توفيق شكري

    2012-9-12

    The Egyptian economy relies on production and consumption and in both cases, it needs to deal with other countries in order provide some raw materials for the production movement and some goods which are not produced in the country. Therefore, it is necessary to earn hard currency from the Egyptian labor abroad. Indeed, the money which comes to the country thanks to their sons who are working abroad will provide the required currency for the country’s foreign trade movement.

  • ﺳﻤﻴﺮ ﻋﻠﻲ ﺣﺴﲔ

    2012-9-11

    Every Egyptian who lives abroad should put his money in the Egyptian banks in order to benefit and serve his country instead of another country benefitting from them which does not deserve them. Every Egyptian who lives abroad should work on this point that Egypt is passing through a difficult stage and it needs every penny that is lost abroad. It needs the youth who think about it as well as think of how to get benefits from this money in serving their homeland, raise it, and work on making the revolution succeed. The revolution that they did, many people have died so that every Egyptian who lives abroad should think about all of that in order to feel that he shared in raising his country and its economy. Through this way, the economy of Egypt will return back to what it lost this year when many things have changed. Therefore, we have to feel that the revolution has been completed in order for Egypt to return back to its position among the other countries. Every Egyptian who lives abroad should send his money to the Egyptian banks which do not have any goal except raising Egypt so that the Egyptians will feel that they are the ones who raised Egypt again.

  • ﻣﻨﻴﺮ ﻣﺤﻤﻮﺩ ﺳﻌﻴﺪ

    2012-9-11

    One of the most important things that support the Egyptian economy in indirect way and provides another way of getting hard currency that we need to build this home is the money transferred by our brothers abroad. These funds support the Egyptian economy in a good way and affect it positively.

  • ﺫﻳﺎﺏ ﺍﺣﻤﺪ

    2012-9-11

    The citizen always plays the key role in raising the banner of his country high. He is the owner of the upper hand to develop his country. He always tries to promote his dear country on any land and under any sky. He always keeps his dear country in his mind seeking a better future for it because he knows that whenever his country elevates, he personally elevates. Thus, we see that the promotion of the country is for the best of the citizen. A citizen has to realize that wherever he goes, he can help elevate his country. We will mention the most important things that help develop the economy of the country, that is, the monetary remittances sent by the citizens living overseas to their dear country. This money has strong influence on the Egyptian economy because it sent in dollars or other foreign currencies. These currencies used to be difficult to get. Therefore, these money orders save and provide these currencies for the economy of Egypt which is in need of the foreign currency that is used to revive the movement of the economy. These currencies guarantee the easy movement of importing raw materials. Thus, these currencies actually have a powerful and positive influence on the movement of the Egyptian economy.

  • ﻋﺒﺪﺍﻟﻠﻄﻴﻒ ﻋﻤﺮ ﻋﺒﺪﺍﻟﻠﻄﻴﻒ

    2012-9-11

    Egypt has a lot of migratory minds and migratory labor in all countries of the world, especially in the Gulf States. The largest Egyptian community abroad is in Saudi Arabia, so the Egyptians' remittances from abroad and in Saudi Arabia are a strong factor in pushing the Egyptian economy and pumping money from abroad, especially in dollars. There is a large pumping of the dollar currency which raises the credit and cash arrangement of Egypt. The increased demand for remittances from Egyptians abroad, especially after the January revolution, led to the interaction of Egyptians abroad to pump money into Egyptian banks through remittances to support their country. The Egyptian government adopted projects related to the Egyptians abroad to encourage them to convert money and pump it in Egyptian banks. It includes depository system in dollars with low-interest as a sort of contribution of the sons abroad to boost production. The Egyptian government also adopted a decision allowing the Egyptians abroad to enter the draw for land and apartments in the newly constructed cities and in distinct residential areas. It is done via dollar cash injection to the central bank through remittances. This will transfer money from abroad instead of keeping it in other countries' banks. Therefore, the Egyptian government is going to institute many new procedures that will increase the extent of participation of the Egyptians in the making of a new country, especially after the Glorious January Revolution.

  • ﻋﺪﻧﺎﻥ ﺍﺣﻤﺪ ﻋﻠﻲ

    2012-9-11

    The transferred money of the Egyptians working abroad has a great and positive impact on the economy of Egypt. Indeed, this money will boost the Egyptian economy and benefit the Egyptian people who have suffered from the economic crisis for a long time. For this reason, the expatriate Egyptians are serving their nation. Indeed, the views which claim that the expatriate Egyptians do not care about their homeland are actually wrong. In fact, the Egyptians who work abroad are suffering from homesickness and hardships in order to serve their nation. Those people were obliged to leave their nation and their families in order to look for a living. Therefore, the Egyptian Government is supposed to support them and show them full respect. Indeed, the Egyptian Customs services should not humiliate them as usual. Despite their efforts to serve their nation as well as their families, the Egyptian expatriates are usually ill-treated by the Customs of their own country. Those people are often eager to invest in projects in Egypt and provide the banks of their nation with hard currency, which serves the economy. In fact, the amounts of money that the expatriates transfer to Egypt are very decisive in the development of the Egyptian economy. Thus, the authorities should support the Egyptian expatriates through the embassies which must treat them well while working abroad.

  • ﻣﺤﻤﺪ ﻧﺎﻳﻒ ﺳﻠﻴﻤﺎﻥ

    2012-9-11

    There is no doubt that the money sent by the expatriate Egyptians greatly affects the national economy. Besides, those people usually invest in businesses and projects in their home country. Moreover, the Egyptian expatriates pay the customs tariffs and change their hard currency in Egyptian banks. In short, they affect positively the Egyptian economy, contrary to what is rumored. Indeed, some views are concerned that the expatriates do not contribute to the economic activity of their homeland. Of course, this is totally wrong. The Egyptians who work abroad are suffering from bitter homesickness in order to develop their nation. As I have mentioned earlier, they are the main source of hard currency. Indeed, their impact on the Egyptian economy is both great and clear. I think they would not have immigrated if they had gotten a chance to work in Egypt. It is hard for any citizen to leave his country for a living. In fact, those people have left their families and loved ones in order to make a living. For this reason, we should appreciate the importance of the money transferred to Egypt and its major impact on the Egyptian economy. Indeed, this money is invested in projects implemented in the country. Thus, the Egyptian authorities are supposed to streamline the transactions of the expatriates and facilitate the establishing of their investment projects in the country. In this respect, the Government must help them and make things easier for them in order to encourage them to invest in Egypt, which serves the nation above all.

  • ﻗﺎﺳﻢ

    2012-9-10

    The money of the citizens who work abroad and which they send to their countries will significantly contribute to the improvement of the Egyptian economy. The money of those who work abroad has numerous benefits that cannot be counted as it is well known to everyone that the Egyptian is generous and likes achievement and it is his right to participate in building his country and its ancient civilization; through his works, nations and people could be upgraded. Despite the importance of work the youth in Egypt are suffering from a severe shortage of job opportunities and the reason behind this is the administrative corruption in all the state facilities, in addition to the absence of job opportunities which are not enough for all the unemployed people. This generation does not have the opportunity to participate in building Egypt as it is the right of all the citizens who are able to work and who posses qualifications to participate in the achievements of their country. Therefore, as citizens, we call upon the Egyptian government and all the other responsible authorities to provide job opportunities to all citizens who are able to work and these opportunities must be based on correct bases away from mediation, so that all citizen could enjoy this opportunity as unemployment and the absence of job opportunities have become a threat to all citizens, whether educated or not, and this is the main reason for many problems including poverty, which has threatened all the Egyptian people in addition to the lack of political and security stability in Egypt during this period. Egypt is in a bad need of help for its people in order to pass this critical stage.

  • ماهر محسن عبود

    2012-9-2

    The population of the Egyptians who work abroad already reached ten million. There are scientists, workers, doctors, engineers, craftsmen and all other fields and they represent a strategic treasure as a pillar of the Egyptian national income pillars. The money transferred to Egypt by the Egyptians working abroad via bank transfer or post or in the form of stuff, goods or furniture refreshed the general economic atmosphere in Egypt. The work of the Egyptians abroad reduced the unemployment percentage. In addition, the transferred money to Egypt created new job opportunities for the youth resident in Egypt through investing this money in projects that bring in income that revived the Egyptian market. On the other side, the Egyptians working abroad transfer their money in the form of hard currency which achieves a balance in the Egyptian balance of trade. Upper Egypt is also known for the fact that about seventy percent of its youth travel to the Arabian Gulf countries because of the scarcity of income and job opportunities for them in Egypt. After that, the young man returns home after a year or so to get married and establish his own project with the money he earned from his work in these countries. In this respect, he contributed to refreshing the Egyptian economy from two sides: the first one is through the money he is spending and the second is through the investments he is establishing for the progress of the economy.

  • بشار ياسين

    2012-8-23

    We sincerely supplicate the new Egyptian government as the Egyptian people have been expecting better services for years. We congratulate the new Egyptian government for the trust that was granted to it by the Egyptian people and we wish more success to them in serving the Republic of Egypt and in their service to the great Egyptian people who wish to see progress in the economy, science and housing in addition to solving the problems that face the Egyptians such as the housing crisis and the other economic problems. The most important problem that harms any society and requires quick and suitable solution is the problem of education. Developing education is extremely important to Egypt, which suffers from many problems because of the ignorance and lack of scientific thought in dealing with problems. Therefore, the suitable solution to the problems of the Egyptians lies in paying more attention to science, which can help in making use of the vacant areas in Egypt in solving the housing crisis, and which also can solve their economic problems. We can make use of the economic resources in the state of Egypt scientifically in such a way that will lead to the comprehensive development in Egypt.

  • احمد

    2012-8-20

    Whatever the expressive metaphors and rumors, and whatever the imagination flies in the skies of the dreams, there is no doubt that Egypt now lives in a period where no one can imagine it. The hope and confident in God is very great but the human always dreams as he used to in reality. However, now with all these events that happened and everything that happened in Egypt from developments in politics in all sides, the matter before was impossible. Whoever thought of saying it or even imagining it was participating in stepping down from the regime and his place is jail.

  • ابو يحيى

    2012-8-20

    The Egyptians must work together in order to unify their word and in order for them to work on achieving a better future for themselves. The Egyptians suffered many injustices in the previous regime and were subjected to various kinds of torturing which nobody can endure. The Egyptians suffered from hunger, poverty and unemployment. The Egyptians have chosen the one whom they are hoping will solve their numerous problems. We must admit that what we have reached it, all thanks to God the Almighty and then thanks to all the Honorable Egyptians who have sacrificed for the elevation of this county in order to make it a better place where the Egyptians can live without any dictations from anyone. The Egyptian citizen is a citizen who deserves all the appreciations and the respect for his resistance in front of all the obstacles that no one has expected that he can pass. However, he managed to outperform himself in many of those dreams such as the social life, freedom and dignity that we missed a lot. We promised ourselves that we will not miss any item in those dreams even if the price is our lives.