More Than a Criminal Tool: The Hawala System’s Role As A Critical Remittance Channel for Low-Income Pakistani Migrants in Dubai

Abstract

This paper examines how and why migrants remit through unauthorized remittance channels (namely the hawala or hundi) and investigates the hawala's developmental roles and effects on migrants’ socioeconomic status. Applying a qualitative case study of 30 low-income Pakistani migrants in Dubai, we argue that the thriving yet unauthorized status of the hawala system is a unique product of global migration process. In contrast to the dominant literature on the nexus between the hawala and terrorist and criminal-related financing, we assert that the sustainability of the hawala is the result of an ongoing effort of low-income migrants to increase their remitting power, providing money that is crucial to their families’ socioeconomic status within the con-text of rapidly globalizing forces. This study provides both important empirical and theoretical insights into the hawala's complex relevance for low-income migrants, governments, and international organizations in global migration context.

Mapping hawala risks around the world: the use of a composite indicator

“…The U.A.E. is known as a hawala settlement hub (Ballard, 2005;Malit et al, 2005;accordingly ranked 49 by the PCA weighted indicator). Nevertheless, the U.A.E.…”

Networks, Labour and Migration Among Indian Muslim Artisans

“…Despite the best attempts of GCC states to formalise migration regimes, various informal practices are commonplace. Remittances, for example, are regularly repatriated to countries across South Asia via the informal hawala system (Malit et al 2017), and the Azad or 'free visa' system, which involves a kafal sponsoring a visa for fictive employment, is used by some migrants. Under Azad arrangements, the kafal extracts commission at the time of issue, and often as a monthly fee, during the migrant's employment within whichever GCC state the visa is valid for.…”

Debatiendo Hawala, sus infraestructuras y cuestiones críticas: ¿Existe una continuidad de Hawala hasta las tecnologías de cadena de bloques?

“…When these workers face salary delays, some "trusted hawala agents" provide support to their families remitting cash transfers in advance. In this way, the families can continue to afford paying their household expenses (Malit Jr. et al, 2017). But "this particular 'humanitarian transaction' is often only possible if the migrant has built long-standing trust and relationships with the hawala agent."…”