Gulf Remittances Hit $124 Billion in 2024, Western Union Reports Early Surge
WU•Western Union reported an acceleration in outbound remittances from Gulf states during the early Iran conflict, as the 30 million Middle East migrants sent $124 billion home in 2024. Economists warn that continued uncertainty could deplete workers’ emergency savings by Q3 2026, risking a sharp remittance collapse.
1. Surge in Gulf Remittances
In the first months of the Iran conflict, migrant workers in the six GCC countries sent an estimated $124 billion home in 2024. Western Union reported a clear acceleration in outbound remittance volumes from the Middle East during this period.
2. Conflict’s Economic Impact
The war has disrupted travel, choked exports through the Strait of Hormuz, raised import costs and strained supply chains, leading economists to forecast slower growth in major Gulf economies for the year.
3. Worker Financial Strain and Risks
While transaction volumes rose, average remittance values fell about 12%, and 40% of senders have tapped emergency savings. At the current rate, these reserves could be exhausted by Q3 2026, potentially triggering a sharp decline in total remittances.
4. Implications for Western Union
The short-term boost in transaction volumes may lift revenue, but continued regional uncertainty and potential remittance collapses pose volatility risks for Western Union’s long-term growth trajectory.
