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
The report concludes with future outlook and projections of Kuwait Remittance Market, major macroeconomic indicators and upcoming trends affecting the market have also been highlighted in the report. The report also serves competitive scenario for each market which exists in remittance industry to get an in-depth understanding of remittance sector in Kuwait.
Kuwait is a well known market in the world with wide range of investment and job opportunities, due to which it has been a major attraction for job seekers, majorly from Asian countries. Huge percentage of the total population of the country majorly accounts for expatriates and they majorly send money back home which has driven the demand for remittance market in the country. Higher labor wages, better paying jobs and good lifestyle has attracted people from all over the world to Kuwait. A major factor that has augmented remittance outflow from the country is the lack of citizenship and the other rights provided to the expatriates. The low transaction fees and increasing expatriate population have led to a huge increase in the money send from Kuwait. In terms of transaction volume, Kuwait remittance industry augmented from USD ~ million during 2012 to USD ~ million during 2017 at a CAGR of ~% during 2012-2017. The market will be led by increasing number of expatriates due to the creation of new employment opportunities, constantly decreasing remittance charges, weakening currency exchange rates in the receiving countries and other factors. Major players in Kuwait remittance market include Al Muzaini Exchange Company, Western Union, UAE Exchange, Al Mulla Exchange and others.
Kuwait International Remittance Market
International remittance market of Kuwait represents the workers’ remittance outflow and inflow from and to the country. Kuwait is known for an extraordinary rate of expatriate population with expat population accounting more than the population of Kuwaitis. Kuwait remittance market is led by the remittance outflows from more than a decade. The traditional method of remittances included exchange houses using the cash account facility or the money order facility at the banks. Over the period this trend has phased out with the emergence of electronic fund transfer facilities offered by the banks and exchange houses. With the advancement of technology in the global market coupled with increasing prominence of online payments and e-wallets, the international remittance market has changed its shape over the years.
Kuwait International Remittance Market Segmentation
By Inbound and Outbound Remittance: Inbound remittance in international remittance market has accounted for huge chunk of overall transaction volume owing to inflow of remittance from other countries to Kuwait. The increasing Kuwaiti population in other countries in search of better job opportunities and high salary has contributed to the rising size of the remittance industry. Inbound remittance accounted for a share of ~% (USD ~ million) of the overall transaction volume during 2017. Outflow of remittance in the country is very high because of huge migration of foreign workers in the country. Outbound remittance has accounted for a share of ~% (USD ~ million) during 2017.
By Channel (Bank and Non-Bank): Non-bank channel in Kuwait majorly consists of the money transfer agencies, local merchants and exchange houses. Non-bank channels have accounted for a major chunk of overall transactions, accounting for ~% (USD ~ million) of the total transaction volume during 2017. Bank as a channel is preferred owing to security but many people are still unaware of remittance facility made available by the banks. Majority of the transfer and frequent transfers are made by the labor class of the country who are less knowledgeable about the banking transactions. Banks have accounted for a share of ~% (USD ~ million) of the overall transaction volume during 2017.
Kuwait Domestic Remittance
Kuwait has great opportunities in domestic remittance majorly owing to rising internal migration and growing business activities in the country. The rise in employment opportunities have led to a rise in the internal migration of people from underdeveloped regions to developed regions. Recently, the fall in the oil prices has reduced the rate of business activities in the country. Though the fall in oil prices have affected the business activities in oil sectors, the country’s non-oil private sector business activities started flourishing during this period, enabling the country to gradually pick up in the midst of economic downfall. Lately, the oil prices have shown recovery and the non-oil private sectors have shown tremendous growth which has flourished the remittance market in Kuwait. Domestic remittance in the country is dominated by bank which have accounted for a share of ~% (USD ~ million) of the overall transaction volume during 2017. All business units have tie ups with major banks operating in the country. For business remittances, transactions through banks are considered safe and secure. During 2017, the non-bank channel held a share of ~% in the overall market.
Kuwait Bill Payment Market
The bill payment market in Kuwait has showcased tremendous growth over the years. There are various attributes to the growth showcased by the market such as the rising number of expatriates, increased spending on utilities by both nationals and non-nationals. The country has witnessed a rise in number of mobile phone connections, increase in internet penetration and gradual shift towards digitalization which has changed the shape of bill payment industry in the country. 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. Kuwait has witnessed increasing prominence of e-wallets and online payments which provides ease for the customer to pay their bills. Major types of bills include grocery bills, utility bills, fuel bills, DTH & broadband bills and mobile recharge bills.
Future Outlook of Kuwait Remittance and Bill Payment Market
It is expected that Kuwait remittance and bill payment market in future will grow at a descent growth rate, augmenting to USD ~ million during 2022 rising from USD ~ million during 2018 at a CAGR of ~% during 2018-2022. It is expected that infrastructure development activities undertaken by the government is set to increase job opportunities in the country in upcoming years. As majority of these jobs are expected to be in the thriving private sector of the country, there will be a significant increase in the number of expatriates in the country. This will clearly have a substantial impact on increasing remittance inflows and outflows, which are heavily dominated by the country’s expatriate population. The domestic remittance industry in future will be driven majorly by digital money transfer business. The transaction fee for domestic money transfer is very minimal and has greater speed which will majorly aid the growth of domestic remittance market in Kuwait.
Key Topics Covered in the Report
Money Transfer Market Kuwait
Kuwait Remittance Industry
Value Chain Analysis Kuwait Remittance Market
Kuwait Remittance Market Size
Kuwait International Money Transfer Transactions
Major Players Kuwait Remittance Market
Kuwait Inbound Remittance Market
Kuwait Outbound Remittance Market
Kuwait Average Remittance Size
Money Transfer Companies Kuwait
Remittance Companies Kuwait
Major Money Transfer Operators Kuwait
Unbanked Population Kuwait
Non-Banking Operators in Kuwait
Kuwait International Money Transfer Market
Kuwait Domestic Remittance Market
Kuwait Bill Payment Services Market
E-wallets Market Kuwait
Kuwait Remittance Market Growth
Future of Kuwait Remittance Market
Upcoming Trends Kuwait Remittance Market
International Immigrants Kuwait
Inbound and Outbound Remittance Kuwait
Western Union Remittance Share Kuwait
Al Muzaini Exchange Competitors Kuwait
UAE Exchange Transactions Volume
Internet User Population Kuwait
Number of Kuwaiti Immigrants Worldwide
Ankur Gupta, Head Marketing & Communications
ankur [@] kenresearch.com
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