Expat remittances hit RO 3.829 billion in 2018

MUSCAT, AUG 21 - Remittances by expatriate workers inched up a marginal 1.4 per cent to RO 3.829 billion in 2018, up from RO 3.774 billion a year earlier, despite an overall decline in the size of the expatriate population, the Central Bank of Oman (CBO) said. The total number of expatriates in the private sector dipped for the first time to 1.729 million in 2018, down from 1.795 million during the previous year – a 3.7 per cent decline attributable partly to the economic downturn, but also strong measures by Oman’s authorities to support Omanisation.

Nevertheless, the remittance outflow was still several notches lower than the 2015 high of RO 4.226 billion, with levels trending downward ever since in the wake of the challenging economic situation. The hefty size of expat remittances has long been an issue of concern for Oman’s fiscal authorities because they are seen as contributing to the leakage of domestic savings. This leakage typically takes place in the form of net outflows under investment income (net interest and dividend payments on external liabilities) and remittances by foreign workers. However, the quantum of leakage in domestic savings has declined over the past two years, according to the CBO.

Following strident measures by the Ministry of Manpower to bolster Omanisation, the number of nationals in the private sector spiked a positive 5.6 per cent to 252K in 2018, up from 238K a year earlier, the CBO said, citing figures published by the National Centre for Statistics and Information. Aiding the uptick was a ban on the hiring of expatriates in a number of professions, and in a number of positions as well.