According to the report titled “Evolution of Cross-Border Financial Transfers,” this trend is driven by increased mobile phone usage, online shopping activities, and the need for convenient, fast, and secure financial transfer services.

It is worth noting that the UAE and Saudi Arabia are the largest contributors to financial transfers in the region, with transfers of $39.6 billion and $39.3 billion, respectively, in 2022, accounting for approximately seven percent of the GDP of both countries.

“The growing demand for reliable and cost-effective money transfer services in the Middle East is driven by the increasing number of expatriates, especially those from India, Pakistan, Bangladesh, Egypt, Nepal, Sri Lanka, and the Philippines, who send money to their home countries,” the report added.

Moreover, the report expects this trend to continue in the coming years, with the UAE and Saudi Arabia being the main sources of financial transfers to countries in Asia and the Middle East. These two countries host over 22 million foreign workers (nine million in the 10 million population of UAE and 13.5 million in the 34 million population of Saudi Arabia).

The report also indicates that cross-border financial transfers go beyond cash transfers, as the sector has witnessed growth in the demand for specific-purpose financial transfers by non-banking customers who seek greater control over their financial resources. This has led to the emergence of a diverse range of prepaid digital vouchers, including products like mobile top-ups, data packages, gift cards, and service bills. Mobile top-up services, in particular, are widely popular in the Middle East, where mobile phone usage rates are high, and individuals often rely on topping up their mobile services to stay connected with their families and friends in their home countries.

"The global shift from cash to digital payment methods has contributed to the momentum of the digital revolution, and the Middle East is no exception. The latest forecasts indicate that 69 percent of payments in the region will rely on non-cash payment methods by 2030,” Paolo Montessori, CEO of Prepay Nation, said.

With this transformation, consumers explore available innovative solutions, such as money transfer products, which is a unified and comprehensive approach that enables individuals to continuously send money to their loved ones while gaining higher control and better value from their financial remittances, Montessori added.