Doha: The foreign exchange market sees heightened activity during the holy month of Ramadan, driven by increased demand for remittances and foreign currency exchange. Officials from exchange companies estimate that transaction volumes rise by approximately 5 percent to 7 percent during this sacred month.
According to Qatar News Agency, officials highlighted that this activity is experiencing transformations due to cutting-edge technologies and AI, with an increasing shift toward advanced technology, including mobile applications and electronic payment systems. This evolution has prompted exchange companies to enhance their service offerings by providing more seamless online platforms and dedicated applications to expedite financial transactions.
CEO at Al Dar for Exchange Works, Jumah Al Maadhadi, predicted an improvement in the banking sectors during Ramadan, along with the upsurge in remittance activity and demand for foreign currencies to reach approximately 5 to 7 percent. Al Maadhadi emphasized the importance of adapting to technological advancements, especially AI-powered technologies, to align offerings with customer preferences amid the prevalence of financial technology applications.
Al Maadhadi noted that the increase in remittances during Ramadan significantly contributes to Qatar's domestic economy and supports families in residents' home countries. He highlighted that the heightened demand for financial support during Ramadan necessities, such as food, clothing, and holiday preparations, and the demand for certain currencies like the Saudi Riyal coincide with the Umrah season.
Chairman at Arabian Exchange Co WLL, Maqbool Habib Khalfan, also emphasized the increased demand for financial support from families in residents' home countries during Ramadan. He noted that exchange transactions typically increase by approximately 7% during Ramadan compared to other months, with rising demand for currencies like the Saudi Riyal due to travel for Umrah.
Khalfan ruled out the possibility of special promotions or discounts by money transfer companies during Ramadan, given the strong demand from workers and middle-income groups. He highlighted that charitable works and social interdependence during the holy month encourage expatriates to send money to support their families and those in need.
Business development consultant at Al Sarraf Holding Company, Dr. Ahmed Bani Younis, highlighted the extension of exchange companies' working hours during Ramadan to meet increased demand, regulated by the Qatar Central Bank. He confirmed a 5% rise in remittances during Ramadan and an increasing role of technology in the exchange market, with significant demand for the Saudi Riyal driven by travel for Umrah. East Asia, the Middle East, and Africa account for the largest share of remittance activity, with Asian labor remittances representing nearly half of the total.