MoneyGram International (NYSE:MGI), a leading global money transfer company, announced it has signed a deal with United Bank in Egypt that will add 43 locations in key cities throughout the country.
United Bank, which is majority owned by the Central Bank of Egypt, will introduce MoneyGram services into many new cities, thus providing an opportunity for growth.
"Our expansion in Egypt supports our customers not just within the country, but more broadly across the Middle East region," said, Richard Meredith, MoneyGram's regional director for the Middle East, Pakistan and Afghanistan. "Our goal is to provide an easy and safe way to transfer money within and across borders. To that point, we recently expanded our service offerings in Saudi Arabia, making it convenient for workers there to send money from any of the 1,400 ATMs around the country, which is a key factor in transactions to Egypt."
Egypt, which has a population of 79 million people, ranked among the top 10 receive countries in the world, according to the World Bank, with $8.7 billion in 2008 and $7.8 billion estimated for 2009. Remittances mostly come from Saudi Arabia, Libya, Palestine, the United Kingdom, the United States and Italy. Markets that receive the most money from Egypt include the United States, Morocco, Russia, the United Kingdom and Pakistan.
"We are pleased to add MoneyGram's services to our branch locations, and especially to provide convenient services in Sharkeya, Sohag, El Nobaria, Damettena City and Mansoura," said Mohamed Ashmawy, chairman for United Bank of Egypt. "Also, we'll soon open a branch in Al Mahala and Bani Sweif to support the remittance demands there."
Meredith said, "United Bank is well known and already experienced in remittances. They understand the business well, which is crucial in expanding the market. We are excited to have them as a valued partner in providing money transfer services within such a key growth market for us."