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MoneyTransfers.com has analyzed data from banks in Islamic nations around the world to reveal an increase in financial activity, as remittance to Pakistan and Bangladesh grows significantly in the month of Ramadan.
A recent report has revealed remittance has grown by almost 30% in the month of Ramadan compared to the previous month, with a growth of 8.49% compared to this time last year.
At the same time, the State Bank of Pakistan revealed an increase in inward remittance of 27.4% in March 2023, compared to February. This was a seven month high in remittance inflows for Pakistan, reaching $2.5 billion. However, the country’s inflow of remittance was actually 11% lower than in March 2022.
The Bank Rakyat Indonesia is also anticipating an increase in remittance flows to Indonesia, having already seen a growth of 18% in early 2023. The banking entity is targeting a growth of 25% in transactions during the Ramadan and Eid al-Fitr period.
The story is similar in Qatar, where officials say there has been a ‘sharp increase’ in daily remittances with around 600-700 transactions a day during the month of Ramadan.
Financial activity usually sees an uptick around the time of Ramadan, with swathes of the world’s Islamic population spread across the globe preparing for Eid celebrations. As such, many Muslim nations report increases in remittance activity - and 2023 only continues the pattern. Only last year, there was a reported a spike in remittances of 16% during the Muslim holiday season.
Financial activity heightened in the UAE
Remittance isn’t the only thing that increases during the month of Ramadan and the build up to Eid al Fitr. Financial activity in general is up, and according to data analyzed by MoneyTransfers.com this can be seen especially in retail - with UAE consumer shopping intention during Ramadan set to rise by 33% in 2023 compared to the previous year.
The survey indicates that the entertainment sector will see an increase of 25%, while travel (21%), cosmetics (28%), groceries (23%), and food deliveries (28%) will also go up. Additionally, 39% of respondents planned to increase their Eid gift spending, while just under half of all people wanted to make the occasion more special to compensate for the pandemic years.
State of economy impacts Ramadan around the world
While overall spending might be on the rise as a result of Ramadan, with remittance increasing during the periods as well as retail spending, the state of the economy is still being felt by some.
A report from the UK shows that almost half of British Muslims have seen their Ramadan and Eid plans impacted by the cost-of-living crisis. Two thirds said they would spend ‘much less’ than what they did the year before, and two in five said they were turning to budget-friendly shops for Ramadan preparations.
Elsewhere, a survey of Muslims around the world found that 23% of Asian Muslims and 25% of Middle-Eastern Muslims were exploring taking out a loan to help with their expenses during the holy month. According to the data, more than half of Muslims across Asia, Africa and the Middle East were planning to spend more during Ramadan.
Ramadan is a holy month when Muslims around the world feel a sacred bond in the eyes of God, fasting from sunrise to sunset in a testament to their devout faith and submission. It is a beautiful and spiritual time of year for many, and the culmination of events on Eid-al-Fitr exemplifies the togetherness of the Islamic community. It’s no wonder, then, that the spirit of giving and love and sacrifice then leads to so much money being exchanged, and with Islam widespread around the world, having access to easy money transfers is crucial. Remittance is a key part of many Islamic nations’ economies, and to see numbers rise around this time of year is further proof of the strength of their bond and community spirit, especially in difficult economic times.Jonathan Merry, CEO of MoneyTransfers.com
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