Remittance boom: UAE leads GCC as India hits record $129.4b in 2024

Remittances to South Asia from advanced economies have surpassed outflows from the GCC, though the Gulf remains a critical pillar, with the UAE retaining the rank as the top source country in the region, according to newly released data.  

In 2024, India solidified its position as the world’s leading remittance recipient, with overseas workers sending a record $129.4 billion — a figure boosted by an unprecedented $36 billion in the December quarter alone, per the Reserve Bank of India (RBI). 

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GCC-wide remittance outflows dipped slightly by 0.4 per cent in 2023 to $131.5 billion, reflecting post-pandemic adjustments and policy shifts, such as Saudi Arabia’s decision to allow migrant families to relocate, reducing the need for cash transfers home.

Despite this, the UAE stood out, contributing $21.6 billion to India—19.2 per cent of its total inflows—making it the second-largest source globally after the United States. 

A rupee-dirham payment pact has streamlined transactions, enhancing the UAE’s role. Saudi Arabia, Kuwait, Oman, and Qatar together accounted for 11 per cent of India’s remittances, underscoring the Gulf’s enduring relevance. India’s migrant stock has tripled since 1990, rising from 6.6 million to 18.5 million in 2024, with half residing in GCC countries. This diaspora expansion has fuelled India’s remittance surge, marking its third consecutive year above $100 billion. 

Globally, India has led remittance rankings since 2008, driven by two migration streams: Skilled professionals in tech and healthcare flocking to advanced economies like the US, UK, Canada, and Australia, sending high-value transfers, and a blue-collar workforce in the GCC, historically the dominant source until surpassed by advanced economies in 2023-24.

The RBI projects remittances could climb to $160 billion by 2029, propelled by skilled migration to the West and GCC’s diversification beyond oil, which may open new job opportunities.

“India’s remittance growth reflects an evolving diaspora — more IT experts in advanced economies and steady GCC contributions,” said Priya Sharma, an economist at HSBC. “Innovations like India’s Unified Payments Interface (UPI) and bilateral agreements could further bolster inflows.” 

Globally, remittances to low- and middle-income countries reached $685 billion in 2024, with South Asia’s growth of 11.8 per cent outpacing the global average of 5.8 per cent. India’s $129.4 billion dwarfed Mexico’s $68 billion and China’s $48 billion, the latter hitting a two-decade low share of 5.3 per cent due to declining low-skilled emigration.

Pakistan and Bangladesh also contributed to South Asia’s robust performance. The shift from GCC to advanced economies highlights changing migration patterns. In 2024, advanced economies accounted for the largest share of India’s inflows, though the UAE led GCC contributions with 27.7 per cent of the regional total.

“The Gulf’s share has softened, but its economic recovery could stabilise outflows,” Sharma noted. “Family reunification policies in Saudi Arabia may temper flows, yet the UAE’s dominance signals resilience.

” Additional data from the World Bank shows India’s remittance costs remain among the lowest globally, averaging 4.2 per cent per transaction, compared to the global average of 6.3 per cent—a factor supporting its sustained inflows. Analysts caution, however, that diversification and cost reduction will be the key to long-term stability.

“India’s remittance engine is firing on all cylinders — high-value Western flows and reliable GCC streams,” said Anil Gupta, a migration expert at the Observer Research Foundation.

“But as Gulf economies evolve, India must deepen digital payment systems and skill development to stay ahead.” With its diversified migrant base—spanning tech professionals in the US and UK to construction workers in the Gulf — India’s remittance dominance looks set to endure.

“As global economic uncertainties loom, the interplay between advanced economies and a reviving GCC will shape the next chapter of this vital lifeline,” analysts said.

Issac John

Issac John is Managing Editor at Khaleej Times and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.

issacjohn@khaleejtimes.com