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Egypt's Economy

Remittances From the Gulf

How millions of Egyptians working in Saudi Arabia and other Gulf states send home money that is one of Egypt's largest sources of foreign currency.

Millions of Egyptians work abroad, especially in the Gulf.

Scale

Remittances are among Egypt’s largest sources of foreign currency, often larger than canal revenue.

Where

Saudi Arabia, Kuwait, the UAE and others.

Exchange rate effect

When Egypt’s official exchange rate was overvalued, many migrants sent money through informal channels at better black-market rates, reducing official inflows.

After devaluation

When the pound was devalued and rates unified in 2024, official remittances jumped.

Families

Remittances pay for housing, school fees and consumption.

The black-market rate

A worker in Riyadh sends money through an informal broker because the unofficial rate gives his family far more pounds.

Thinking remittances always flow through banks

Distorted exchange rates push them to informal channels.

Key takeaways
  • Remittances are a top source of dollars.
  • Most come from the Gulf.
  • Overvalued rates pushed money to informal channels.
  • Unifying rates raised official inflows.
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