Middle East/North Africa digital remittances will grow

Significance Lebanon is even more reliant on remittances, lacking other sources of capital amid economic collapse. Digital payments have sped up transfers and reduced transfer costs, while increasing access to those lacking banking facilities. Outgoing remittances from Gulf Cooperation Council (GCC) countries have some of the average lowest costs globally due to digitisation and competition. Impacts Digitisation will boost business and investment transactions before benefiting remittance transfers. Outward remittances from hydrocarbon-rich Middle Eastern and North African countries will fluctuate with government spending. Blockchain systems will help unbanked countries such as Lebanon, Syria and Yemen receive remittances. Shadow financial transactions linked to trade with sanctioned entities suggest further trade-offs that may challenge remittances.