Abu Dhabi-based LuLu Financial Group, one of the largest retail conglomerates in the UAE, is expanding its presence in the Philippine remittance and foreign exchange industry.
The move aims at encashing the strong economic ties between Middle East and the Philippines and the increasing number of the deployment of overseas Filipino workers in the region.
A significant chunk of the nearly $30 billion sent home each year by almost five million expatriate Filipinos can be channeled toward more productive sectors like helping finance the government’s infrastructure buildup program, reported Inquirer.
“The economic bond between the Philippines and the nations of the GCC are strong and getting stronger, given the large number of Filipinos working there and sending money back home,” LuLu Financial managing director and CEO Adeeb Ahamed had reportedly said earlier.
He was referring to the GCC region, which played host to an estimated 2.2 million Filipino contract workers. About one-fourth of the yearly dollar remittance tally that helps boost the Philippine economy comes from this region, the report said.
Ahamed was quoted as saying that this huge potential encouraged LuLu Financial to open its third foreign exchange and remittance office in the Philippines to better serve Filipino clients in its home region.
LuLu Financial is a non-banking financial organization. It deals in foreign exchange, global money transfer and salary and wage administration. It has 132 branches worldwide, staffed by over 1,500 employees.
Ahamed reportedly said the group had the physical network to be able to serve GCC-based Filipinos’ remittance needs close to their workplaces.
He said the remittance business in the Middle East might already be crowded, but LuLu Financial’s ties with its parent gave it the advantage of being closer to its clients.
Ahamed said it would be a good idea for the Philippines to try to harness the financial muscle of remittances from overseas Filipinos, similar to what the India had done.
He reportedly cited the case of a major international airport in India which was built with funds raised from overseas Indian workers through retail placements of equity shares.
“This was built using the public-private partnership model,” he said.
“Funds were raised, airport was completed and the retail shareholders saw the value of their stocks rise sharply. This is something the Philippines can also do.”
For starters, Ahamed was quoted as saying by Inquirer, it would be a good idea for the government to forge ahead with its plan to create a bank dedicated to serve the OFW community.