Dublin, April 15, 2024 (GLOBE NEWSWIRE) -- The "Egypt International Remittance Market Business and Investment Opportunities - Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics - Q1 2024" report has been added to ResearchAndMarkets.com's offering.
The international inbound remittance market in Egypt has increased at 6.4% during 2023 to reach US$ 31.80 billion in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 4.1%, increasing from US$ 29.89 billion in 2023 to reach US$ 37.28 billion by 2028.
Remittance outflow market in Egypt has increased at 1.9% during 2023 to reach US$443.8 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 1.2%, increasing from US$435.7 million in 2023 to reach US$464.7 million by 2028.
The Egyptian remittance industry received less than expected remittance in 2023, according to a report from the World Bank. The growing gap between official and unofficial exchange rates has led to a significant drop in inward remittances. To drive the growth of the remittance market, the Egyptian government is undertaking various initiatives, including the use of digital channels for remittances in the formal sector.
Furthermore, the government is also planning to increase the number of expats in the European Union and the United States over the medium term. These initiatives are expected to aid the growth recovery of the remittance market in Egypt. Despite short-term challenges, the publisher maintains a positive growth outlook for the remittance industry in Egypt over the next three to four years.
Remittance inflow decline significantly in 2023 due to gap between official and unofficial exchange rates
The World Bank is predicting a significant 15% year-on-year decrease in remittances to Egypt from expatriates in 2023, amounting to US$24.2 billion. This is a notable shift from their earlier forecast in June 2023, which anticipated a 3.1% increase. The decline is attributed to the widening gap between official and unofficial exchange rates, resulting in a substantial drop in remittances through official channels.
The Central Bank data revealed a significant 38% decrease in remittance flows during H1 2023, totaling US$10 billion. This marks the lowest level recorded since H1 2017. The World Bank's report underscores that remittances in the MENA region are expected to decrease by 5.3% to approximately US$61 billion in 2023, following a 4.5% decline in 2022. The primary factor behind this revised forecast is the sharp reduction in remittances to Egypt, the largest recipient in the region.
The report points out that a shortage in foreign currency has widened the gap between exchange rates, prompting the Egyptian government to implement measures to bolster the country's foreign exchange reserves. The Egyptian government is undertaking various measures to address the decline in remittances. This includes no tax on remittances. Furthermore, the government is offering land and housing in exchange for US Dollars through the New Urban Communities Authority. Banks are planning to introduce savings products exempt from commissions for the diaspora, and efforts are underway to promote the use of digital channels for remittances in the formal sector.
The Egyptian government plans to increase the number of expats by one million in the EU and the US
A document released by the Cabinet titled Features of the Strategic Orientation of the Egyptian Economy 2024-2030 outlines the government's goal to increase the number of Egyptian expatriates by one million. This initiative is driven by the significant demand for workers, totaling 100 million, in the European Union and the United States. The plan is for the additional one million Egyptians to contribute to various sectors abroad, including artificial intelligence (AI), information technology services, nursing, and biotechnology, addressing the existing labor shortage.
The government is also aiming to boost annual remittances by 10 percent, reaching a target of US$53 billion. As per statements from the Ministry of Immigration and Egyptian Expats, the official count of Egyptian expatriates stands at 9.5 million.
Regional remittance providers are eyeing to enter the Egyptian market to drive growth in 2024
To capitalize on the growth opportunity offered by the Egyptian remittance industry, which happens to be one of the top remittance receiving nations, regional providers are seeking to expand their presence in the country in 2024.
Careem, the UAE-based firm, is planning to enter the Egyptian market in 2024. This is part of the firm's strategy to strengthen its position in the global remittance sector over the medium term. Careem, in December 2023, also entered into the Indian remittance market. Alongside Egypt, Careem is also eyeing an expansion in the Philippines in 2024.
Going forward, the publisher expects more regional remittance service providers to launch operations in Egypt, thereby driving the competitive landscape over the medium term. This will aid innovation and sector growth over the next three to four years.
Reasons to buy
- Comprehensive and Up-to-Date Information: The report provides comprehensive and up-to-date information on the Egypt international inbound and outbound remittance market, including market size, growth trends, transaction value, transaction volume, average value per transaction, and market share analysis by transfer channel, consumer demographics, and key countries.
- Understand Competitive Landscape: Get a high-level view of competitive landscape through market share data on key players in the market.
- Actionable Insights for Businesses and Investors: The report provides data centric analysis for businesses and investors operating in the Egypt remittance market. It helps them identify new opportunities, assess risks, and make informed business decisions.
- Forecasts for Future Market Growth: The report provides forecasts for future market growth, enabling businesses and investors to plan and strategize effectively.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 130 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $31.8 Billion |
| Forecasted Market Value (USD) by 2028 | $37.3 Billion |
| Compound Annual Growth Rate | 4.1% |
| Regions Covered | Egypt |
Scope
International Inbound Market Opportunity Trend Analysis in Egypt
- By Transaction Value
- By Transaction Volume
- By Average Value Per Transaction
Market Share of Key Players in Egypt
International Inbound Market Opportunity Trend Analysis by Channel in Egypt
- Digital (transaction value, transaction volume, average value per transaction)
- Mobile (transaction value, transaction volume, average value per transaction)
- Non-Digital (transaction value, transaction volume, average value per transaction)
International Inbound Remittance Analysis of Consumer Profile in Egypt
- Analysis by age group of senders
- Analysis by income of senders
- Analysis by occupation of senders
- Analysis by occupation of beneficiaries
- Analysis by purpose
International Inbound Remittance Flow Analysis (Country to State / Region) in Egypt
- Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
- Market share by transfer channel by key state / regions
International Outbound Market Opportunity Trend Analysis in Egypt
- By Transaction Value
- By Transaction Volume
- By Average Value Per Transaction
International Outbound Market Opportunity Trend Analysis by Channel in Egypt
- Digital (transaction value, transaction volume, average value per transaction)
- Mobile (transaction value, transaction volume, average value per transaction)
- Non-Digital (transaction value, transaction volume, average value per transaction)
International Outbound Remittance Analysis of Consumer Profile in Egypt
- Analysis by age group of senders
- Analysis by income of sender
- Analysis by occupation of sender
- Analysis by occupation of beneficiaries
- Analysis by purpose
International Outbound Remittance Flow Analysis (State / Region to Country) in Egypt
- Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
- Market share by transfer channel by key state / regions
For more information about this report visit https://www.researchandmarkets.com/r/hf0u8o
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