Metrobank enters remittance market in Qatar

Local banking giant Metropolitan Bank and Trust Co. and Qatari exchange company Al Dar Exchange Works have entered into a partnership that would boost Metrobank’s market share in the remittance business.

Remittances from Middle Eastern nations are done through banking correspondence or partnerships with foreign currency agencies and remittance centers.

Last year, the country’s largest commercial bank cornered a 22 percent share of the lucrative remittance business worth about $12 billion.

Metrobank executive vice president Carmelita R. Araneta said the partnership with Al Dar will strengthen its presence in the Middle East by forging remittance tie-ups with stable and licensed remittance centers in the region. The bank currently has 30 remittance tie-ups in the Middle East region.

"The arrangement will allow OFWs (overseas Filipino workers) based in Qatar to transfer their hard-earned money to their beneficiaries in the Philippines through Al Dar," Araneta said.

The Middle East market provided significant growth contribution in the bank’s remittance business in 2006 with a 47 percent increase in volume and 46 percent increase in value.

Remittance services offered to OFWs are credit to Metrobank account, credit to other banks’ account, door-to-door transaction, and payment over-the-counter at Metrobank branches.

Al Dar is the biggest exchange company in Qatar in terms of capital. It is licensed by the Qatar Central Bank to conduct exchange of foreign currencies in the form of bank notes, purchase and sale of travelers’ cheques, coins, precious metals and gold bullions, and handling of personal remittance business. Qatar is currently home to more than 40,000 OFWs who are mostly in the field of household and social services.