OFW remittances from the UAE, Saudi Arabia and Qatar fall

Above, Filipino workers returning home from Kuwait arrive at Manila International Airport on February 18. (AFP)
Updated 16 October 2018
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OFW remittances from the UAE, Saudi Arabia and Qatar fall

  • ‘The countries that contributed to the decline in August 2018 are the United Arab Emirates, Saudi Arabia and Qatar’
  • The three Gulf countries, together with the US, Singapore, Japan, UK, Canada, Germany and Hong Kong, make up to 79 percent of the total remittances regularly sent to the Philippines

DUBAI: The repatriation of Overseas Filipino Workers (OFW) from Middle East countries – where a major portion of remittances originate – contributed to a decline in money sent to the Philippines in August this year, government data said.
“The countries that contributed to the decline in August 2018 are the United Arab Emirates, Saudi Arabia and Qatar,” the Bangko Sentral ng Pilipinas (BSP) said on Monday. The three Gulf countries – together with the US, Singapore, Japan, UK, Canada, Germany and Hong Kong – make up to 79 percent of the total cash remittances regularly sent to the country.
The Philippine central monetary authority reported that cash remittances from overseas Filipinos dipped 0.9 percent to $2.476 billion in August, from $2.499 billion sent during the same month in 2017. Around 10 million Filipinos work overseas and usually are the breadwinners of families back home, providing for most of household budgets and contributing nearly 70 percent of overall national output.
Cash sent from the UAE by Filipinos fell by 36.4 percent to $175.02 million in August, from $275.31 million of the same month last year, while cash remittances from Saudi Arabia went down 20.7 percent to $180.9 million from $228.15 million while Qatar-based OFWs meanwhile sent $68.85 million during the same month, 35.3 percent less than the $106.47 million remitted in August 2017. Among other Gulf countries, remittances from Kuwait slipped 17.4% to $61.3 million from $74.05 million; it was down 37.3 percent in Oman to $17.71 million from $28.24 million previously, but was up 3.4 percent in Bahrain to $19.494 million from $18.85 million a year earlier.
For the eight-month period to August, OFW cash remittances rose 2.5 percent to 19.06 billion, from $18.6 billion during the same period last year. Those sent by land-based OFWs increased by 2.1 percent to $15.05 billion while cash remittances of sea-based overseas Filipinos went up 3.8 percent to $4.01 billion as of August.
In the UAE, the Philippine government recently conducted its sixth mass repatriation of Filipino nationals – mostly victims of illegal recruitment – to take advantage of the three-month amnesty program implemented by the Gulf country. Overstaying expatriate workers who wanted to leave the UAE for their home countries were allowed to exit without the payment of fines or jail terms. So far, 1,842 OFWs have been repatriated from the UAE and the number may further increase before amnesty program ends on October 31.
The Philippines earlier this year also repatriated Filipino workers from Kuwait, triggered by the death of a household service worker whose body was found stuffed in a freezer inside an abandoned apartment, as well as imposed a deployment ban after an ensuing diplomatic row over the protection migrant workers in the Gulf state. The dispute was resolved after an agreement signed in May between the two countries offered better protection for expatriate Filipinos, especially those working as housemaids.


Kuwait Projects Co. hires Goldman Sachs for sale of OSN — sources

Updated 21 November 2018
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Kuwait Projects Co. hires Goldman Sachs for sale of OSN — sources

DUBAI: Kuwait Projects Co. (KIPCO), the Gulf state’s largest investment company, has hired Goldman Sachs to advise it on the sale of its majority stake in pay-television operator OSN, sources familiar with the matter told Reuters.
OSN, which this year signed the first partnership deal in the region with Netflix, posted a 71 percent drop in income in the three months to Sept. 30, according to KIPCO’s latest financial results.
KIPCO and Goldman Sachs declined to comment.
KIPCO said in the results, released last week, that the company’s board had approved initiating a plan to divest its 60.5 percent equity interest in Panther Media Group, also known as OSN, and had engaged an international investment banker for the purpose. It did not disclose the name of the banker.
With the rights to broadcast into countries across the Middle East and North Africa, OSN has more than 180 channels, according to its website. Its other shareholder is Mawarid Group.
OSN faces subdued demand in its core markets due to piracy, geopolitical factors and fiscal reforms by governments which have led to sizeable expatriate populations leaving some of its core markets, said Anuj Rohtagi, director of group financial control at KIPCO in KIPCO’s third-quarter earnings conference call on Nov. 15. He added OSN was taking action to cut costs and attract new customers.
It is not the first time KIPCO has explored offloading at least some of its stake in OSN. In 2014, it said it planned to start the process for an initial public offering of OSN shares.