UAE: How will Trump's tariffs impact remittances?
An expert pointed out that with growing concerns about a weakening dollar, many could choose to send their savings back home earlier than planned.
"Now more than ever, UAE residents need access to instant remittance services to manage their money," said Mohammad El Saadi, VP of Careem Pay. "The proposed tariffs could trigger broader economic uncertainty and put downwards pressure on the US-dollar pegged dirhams."
Last week, US President Donald Trump announced 10 per cent baseline tariff on all imports to the US and higher duties on several countries — a move that sent global stock markets plummeting, with the danger of a trade war looming. China retaliated with a 83 per cent increase in taxes on American imports and Trump has threatened to hit back with additional tariffs.
Varying impact
El Saadi noted that the impact on remittances would vary depending on the income bracket of the UAE residents. "While lower-income expats in the country are likely to maintain their usual remittance patterns to support their families back home, middle and higher-income earners may start shifting more of their savings out of the UAE in anticipation of a weaker dollar."
He added that some may even choose to send money abroad for investments "to take advantage of market dips" and that this could cause a "short-term spike" in remittances as people looked to protect the value of their money.
Meanwhile, Adeeb Ahamed, Managing Director of Lulu Financial Holdings noted that although there won't be a major impact on remittances, people will be more mindful about sending their money back home in the face of the tariffs. "Cost of living is expected to increase across some impacted products," he said. "UAE being an import country, it relies on other countries to bring in needed items. So some products which pass through the US in the supply chain could see price increases.'
Trends
According to El Saadi, Careem Pay saw the strongest remittances growth in Pakistan, India, Europe, and UK in March. India remained the top corridor by transfer volumes contributing over two-thirds of its total international money transfers.
"January saw a spike in high-value transfers and average remittances per user as favorable exchange rates prompted users to send more money home," he said. "However, some customers have held back transfers due to a decline in the Indian stock market."
On Tuesday, Ahamed had noted that there was a significant shift in the reasons why Indian expats sent money home. He said that now, more people were remitting to invest in the stock market and create a passive income, as opposed to home maintenance, which had been the norm for the last few decades.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
3 hours ago
- Gulf Today
Marco Rubio's student visa pause makes no sense at all
Patricia Lopez, Tribune News Service This is a season of anxiety for international students in the US, who find themselves demonised by the Trump administration as it devises new ways to limit their numbers. The latest tactic came in a diplomatic cable from Secretary of State Marco Rubio to US embassies and consulates abroad, ordering a halt to the student visa interviews necessary to enter the country. The reason? An as-yet-undevised policy to further scrutinise the social media histories of students in a search for ... what exactly? No one seems quite sure. It was President Donald Trump who, in his first term, initiated screenings of student visa applicants' social media histories, looking primarily for terrorists or terrorist sympathiders. The policy became one of the few that was maintained by President Joe Biden when he succeeded Trump. In April of this year, Homeland Security said it also would begin monitoring international students' social media for evidence of antisemitism. That raised alarms among free-speech advocates because of the administration's tendency to conflate opposition to the Israeli government's policies or the war in Gaza with antisemitism. At the time, Edward Ahmed Mitchell, national deputy director of the Council on American-Islamic Relations, said in a statement that the administration was 'pursuing witch hunts into American colleges.' Now comes another amorphous, arbitrary standard that, even before implementation, is sending shock waves through an already traumatised international student community. Rubio's 'pause' on new student visa interviews will last until his department issues 'guidance on expanded social media vetting for all such applicants,' according to the cable. It does not specify what might disqualify an applicant or what the State Department will be looking for. It does not even say when the guidelines will be available nor when new interviews will resume, although on Thursday the department announced a pilot program to vet Harvard University's visa applicants for antisemitism. That cable advised those doing the vetting to consider 'whether the lack of any online presence, or having social media accounts restricted to 'private' or with limited visibility, may be reflective of evasiveness.' That is an unconscionable level of opacity for students whose biggest sin is wanting to come to the U.S. to further their education and who have a limited window in which to pursue such opportunities. Recall that the last administration-announced 'pause' was to the US Refugee Admissions Program back in January. That was four months ago. It's still in effect. Bizarrely, Rubio's decision even includes J-1 visa applicants for the State Department's own Exchange Visitor Program. Often those relate to cultural visits, summer work or other education-related travel. But that program also includes physicians and International Medical Graduates, who often serve in teaching hospitals and medically underserved rural areas or other hard-to-staff roles. These J-1 applicants already run a substantial gauntlet of vetting just to reach the interview stage. Finally, there is the conundrum of how the State Department will implement this enhanced vetting even as it plans huge cuts to its footprint and workforce. Trump earlier this year signed an executive order axing budgets at embassies and consulates. In April, CNN reported that according to internal State Department documents, up to 30 embassies and consulates overseas could be closed and others could see reductions. Those kinds of cuts are at odds with the plan to increase the vetting of international students, who already go through exhaustive checks in their attempts to enter the US. Wisconsin Gov. Tony Evers is right when he says that 'all this is just going to scare people away from the United States, people that might come here, get an education, stay here, make some really important progress in some area ... It's just all wrong-headed.' Wisconsin alone had more than 15,000 international students in the 2023-24 school year, according to a study by NAFSA, the National Association of International Educators. That stimulated the state economy by an estimated $541 million. Multiply that by every state and it's easy to see the damage from restricting foreign students won't only be felt by colleges and universities. Fanta Aw, executive director of NAFSA, said in a statement that international students 'already represent the most tracked and vetted category of nonimmigrants in the United States,' calling the pause unnecessary and the additional scrutiny 'a poor use of taxpayer dollars.' And the State Department is unlikely to draw the line at students. Rubio could also easily crack down on business visas, tourist visas, H-1B work visas and others. Despite the fear fostered by the Trump administration's policies, the intellectual richness of an American education remains a potent draw. And while Trump may be happy to set the bar close to zero for foreign students, few outside his MAGA base would agree. The benefits the students bring are indisputable, both in talent and economic impact. The swelling numbers of international students over the last few decades affirm this nation's primacy, spreading American values through 'soft' diplomatic power. America First cannot become America Alone, isolated and parochial. Whether they remain here or return to their native countries, we should hope these international students remember their time here fondly — not with fear.
Al Etihad
6 hours ago
- Al Etihad
Meta secures nuclear energy in 20-year Illinois plant deal
3 June 2025 19:08 Washington (AFP) Facebook owner Meta announced on Tuesday a 20-year nuclear energy agreement with US-based Constellation Energy to secure power from a nuclear plant in the state of investment marks big tech's latest move to meet surging electricity demand from artificial intelligence, with Microsoft, Google and Amazon also turning to nuclear power as an energy the deal, Meta's unspecified investment will replace state government subsidies to keep the Clinton Clean Energy Center operating beginning in 2027, offering the facility a crucial project, which takes over the plant's total electric output, will provide 1,121 megawatts of nuclear energy to support Meta's regional operations while adding 30 megawatts of incremental capacity to the electricity grid, the company said."As we look toward our future energy needs in advancing AI, we recognize the immense value of nuclear power in providing reliable, firm electricity," Meta said in the move comes as tech companies scramble to secure stable, clean energy sources to power energy-intensive AI data energy has gained renewed attention as companies and governments seek reliable, carbon-free power to meet climate goals while supporting growing electricity demands from data centers and AI operations. According to the International Energy Agency, electricity consumption by data centers is projected to more than double by 2030, creating significant challenges for securing adequate energy as AI usage accelerates.
Middle East Eye
9 hours ago
- Middle East Eye
Exclusive: US warns UK and France not to recognise Palestinian state
The US has warned Britain and France against recognising a Palestinian state at a UN conference later this month, Middle East Eye can reveal. France and Saudi Arabia are set to co-host a major UN conference on the two-state solution beginning on 17 June in New York. France is reportedly gearing up to unilaterally recognise a Palestinian state at the conference. MEE understands that France has been lobbying Britain to do so as well. French officials believe the British government is onboard with the plan, according to French media. But Washington privately begun to warn Britain and France against unilaterally recognising Palestine, sources with knowledge of the matter in the British Foreign Office told MEE. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters At the same time Arab states are urging them to proceed with the move, sources said. In late May, UN member states held consultations in preparation for the conference during which the Arab Group urged states to recognise Palestinian statehood. The Arab Group said they would measure the success of the conference by whether significant states recognise Palestine, Foreign Office sources added. 'No grounds for US interference' Approached for comment, the Foreign Office pointed MEE to Foreign Secretary David Lammy's statement on 20 May in which he reaffirmed UK support for a two-state solution. Lammy has publicly opposed unilateral recognition, insisting earlier this year that the UK would only recognise a Palestinian state "when we know it's going to happen and it's in sight". But in late April, Lammy acknowledged for the first time that Britain was in discussion with France and Saudi Arabia on the topic. Israel threatens UK and France with West Bank annexation if they recognise Palestine Read More » Chris Doyle, director of the Council for Arab-British Understanding, told MEE: 'There are no legitimate grounds for the US to interfere in a sovereign decision by Britain and France to recognise another state. 'A Franco-British recognition would be to acknowledge the Palestinian right to nationhood and to be equal partners in any future negotiations with Israel.' Doyle added: 'Based on precedent with this British government, US objection to recognition would be more likely to have an impact on Britain than on France.' But the American president is unpredictable. 'What really counts is what President Trump himself thinks,' Doyle said. 'Opposing unilateral recognition is an existing American position. 'But if I was in Downing Street, I would be asking what does the president himself believe - and how will he react?' If France and Britain go ahead with the move, they will become the first G7 nations to recognise a Palestinian state. Alon Pinkas, who advised four Israeli foreign ministers, told MEE on Monday that French President Emmanuel Macron's push to recognise Palestinian statehood 'is serious and has the backing of most of the European Union and Saudi Arabia'. The move would cause a political earthquake, since both France and Britain are among Israel's most important historic allies. Exclusive: UK considered Palestine recognition in 2014 if Israel built settlements now being planned Read More » And Israel has signalled it would not take the move lying down. Last week Ron Dermer, Israel's strategic affairs minister, threatened Britain and France that Israel may annex parts of the West Bank if they recognise a Palestinian state, according to Israeli newspaper Haaretz. MEE revealed earlier this month that Britain privately decided in 2014 it would consider recognising a Palestinian state if Israel advanced with the contentious E1 settlement project. Israel is currently poised to move forward with the settlement plan, which would effectively split the occupied West Bank in two. Meanwhile, domestic pressure is ramping up in Britain. 'Starmer is facing significant levels of anger throughout the entirety of the Labour party and the British public,' Doyle said, 'even in circles that would ordinarily support the Israeli government.' Several MPs told MEE last month they believe the UK must recognise a Palestinian state immediately. Labour MP Uma Kumaran, a member of Britain's Foreign Affairs Select Committee, said: "This government was elected on a manifesto that promised to recognise Palestine as a step towards a just and lasting peace. "I strongly support the recognition of a Palestinian state, and I have raised this repeatedly in parliament, on the Foreign Affairs Committee and with ministers."
