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'''Dahabshiil''' ({{lang-so|''Dahabshiil''}}, {{lang-ar|دهب شيل}}) is an international [[Wire transfer|funds transfer]] company. Formed in the early 1970s, it has its headquarters in [[London]], [[United Kingdom]].<ref name="Towhamrec">{{Cite web|url=http://www.threcorder.co.uk/content/towerhamlets/recorder/news/story.aspx?brand=REConline&category=newsTowerHam&tBrand=northlondon24&tCategory=newstower&itemid=WeED13%20Apr%202010%2010%3A02%3A08%3A730|title=Decades of community service recognised with award|publisher=Tower Hamlets Recorder|date=13 April 2007|accessdate=3 June 2010}}</ref> The firm has been involved in the modern form of ''[[hawala]]'', an [[informal value transfer system]] (IVTS).
'''Dahabshiil''' ({{lang-so|''Dahabshiil''}}, {{lang-ar|دهب شيل}}) is an international [[Wire transfer|funds transfer]] company headquartered in [[London]], [[United Kingdom]].<ref>[http://www.threcorder.co.uk/content/towerhamlets/recorder/news/story.aspx?brand=REConline&category=newsTowerHam&tBrand=northlondon24&tCategory=newstower&itemid=WeED13%20Apr%202010%2010%3A02%3A08%3A730 Tower Hamlets Recorder]</ref> Formed in the early 1970s, the firm operates from over 400 global branches and employs more than 2,000 people across 144 countries. It provides a broad range of financial services to international organisations, as well as to both large and small businesses and private individuals.<ref>[http://www.threcorder.co.uk/content/towerhamlets/recorder/news/story.aspx?brand=REConline&category=newsTowerHam&tBrand=northlondon24&tCategory=newstower&itemid=WeED13%20Apr%202010%2010%3A02%3A08%3A730 Tower Hamlets Recorder]</ref><ref>[http://www.forbescustom.com/EmergingMarketsPgs/AbdirashidDualeInterviewP1.html Forbes Magazine]</ref><ref>[http://www.diaspora-centre.org/DOCS/UK_Somali_Remittan.pdf UK Somali Remittances Survey]</ref> The company is also involved in numerous community building projects.<ref>[http://www.threcorder.co.uk/content/towerhamlets/recorder/news/story.aspx?brand=REConline&category=newsTowerHam&tBrand=northlondon24&tCategory=newstower&itemid=WeED13%20Apr%202010%2010%3A02%3A08%3A730 Tower Hamlets Recorder]</ref>


==History==
==History==
Dahabshiil was founded in 1970 by Mohamed Said Duale, a Somali entrepreneur based in [[Burao]], the capital city of [[Togdheer]] province in the modern-day [[Somaliland]] region. <ref>[http://www.nytimes.com/2009/11/12/world/africa/12remit.htm New York Times]</ref>
Dahabshiil was founded in [[Burao]], [[Somalia]] in 1970 by Mohamed Saed Duale, a [[Somali people|Somali]] entrepreneur.<ref>David S. Fick, ''Africa: continent of economic opportunity'', (STE Publishers, 2006), p.290.</ref> With the help of his family and through an international support network of business contacts, Duale established the firm as a way to offer migrants the opportunity to send money to family members and friends in the [[Horn of Africa]]. Starting with just one location in 1970, Dahabshiil has grown exponentially over the years, and now enjoys an international presence unrivaled on the continent.<ref name=OfficialDahabshiil>[http://www.dahabshiil.com/about-us/dahabshiil-story.html Dahabshiil Story]</ref><ref name="Forbes">{{Cite news|url=http://www.forbescustom.com/EmergingMarketsPgs/AbdirashidDualeInterviewP1.html|title=Freeing Finance: If money makes the world go round, Dahabshiil CEO Abdirashid Duale makes sure it goes to the right people|last=Trustfull|first=Paul|work=Forbes|date=|accessdate=3 June 2010}}</ref>

Initially a general trading enterprise, the firm specialised in [[remittance]] broking during the 1970s, when almost half the economically active male population in the north of [[Somalia]] migrated to the [[Gulf States]], resulting in a growing demand for services to transfer money from those migrant workers back to their families.<ref>[http://www.howwemadeitinafrica.com/running-a-thriving-money-transfer-business-from-somalia/4118/ How We Made It In Africa]</ref><ref>[http://www.odi.org.uk/resources/download/299.pdf Overseas Development Institute]</ref>

Because of foreign exchange controls imposed by the Somali government at the time, most of the funds were transferred via trade-based system known as Franco Valuta (FV) which involved the import of goods, proceeds from the sale of which were sent to migrants’ families.<ref>[http://www.compas.ox.ac.uk/fileadmin/files/pdfs/Non_WP_pdfs/Reports_and_Other_Publications/Somalia%2005015.pdf COMPAS Publications]</ref> These transactions formed the bulk of Dahabshiil’s business throughout the 1980s.<ref>[http://www.globalsecurity.org/military/world/war/somalia5.htm Global Security]</ref>

With the [[Somali Civil War]] fast approaching, the Duale family were among the hundreds of thousands who retreated to the Somali-inhabited [[Ogaden]] region in neighbouring [[Ethiopia]]. The business in Somalia collapsed, but Duale was able to draw on an extensive network of contacts in the Gulf to re-establish the venture, setting up a small office in Ethiopia to serve displaced Somali communities there and in [[Djibouti]].<ref>[http://www.hiiraan.com/news2/2011/feb/dahabshiil_provides_vital_remittances_says_bbc.aspx Hiiraan]</ref>

In 1989, Dahabshiil opened its first office in [[London]], where a number of Somalis had arrived during the war. The UK arm was managed by Mohammed Duale’s son, [[Abdirashid Duale]], who began to expand the business as the Somali population in the UK grew. <ref>[http://harowo.com/2010/04/15/dhabshiil-recieves-mayors-award-for-40-years-of-exelence-in-community/ Harowo]</ref>


==Somali money transfer industry==
==Somali money transfer industry==

Revision as of 11:49, 10 May 2011

Dahabshiil
دهب شيل
Company typePrivate
Industrymoney transfer
Founded1970
Burao, Somalia
Headquarters
London
,
United Kingdom
Key people
Abdirashid Duale
Number of employees
over 2000 worldwide
Websitewww.dahabshiil.com

Dahabshiil ([Dahabshiil] Error: {{Lang-xx}}: text has italic markup (help), Arabic: دهب شيل) is an international funds transfer company headquartered in London, United Kingdom.[1] Formed in the early 1970s, the firm operates from over 400 global branches and employs more than 2,000 people across 144 countries. It provides a broad range of financial services to international organisations, as well as to both large and small businesses and private individuals.[2][3][4] The company is also involved in numerous community building projects.[5]

History

Dahabshiil was founded in 1970 by Mohamed Said Duale, a Somali entrepreneur based in Burao, the capital city of Togdheer province in the modern-day Somaliland region. [6]

Initially a general trading enterprise, the firm specialised in remittance broking during the 1970s, when almost half the economically active male population in the north of Somalia migrated to the Gulf States, resulting in a growing demand for services to transfer money from those migrant workers back to their families.[7][8]

Because of foreign exchange controls imposed by the Somali government at the time, most of the funds were transferred via trade-based system known as Franco Valuta (FV) which involved the import of goods, proceeds from the sale of which were sent to migrants’ families.[9] These transactions formed the bulk of Dahabshiil’s business throughout the 1980s.[10]

With the Somali Civil War fast approaching, the Duale family were among the hundreds of thousands who retreated to the Somali-inhabited Ogaden region in neighbouring Ethiopia. The business in Somalia collapsed, but Duale was able to draw on an extensive network of contacts in the Gulf to re-establish the venture, setting up a small office in Ethiopia to serve displaced Somali communities there and in Djibouti.[11]

In 1989, Dahabshiil opened its first office in London, where a number of Somalis had arrived during the war. The UK arm was managed by Mohammed Duale’s son, Abdirashid Duale, who began to expand the business as the Somali population in the UK grew. [12]

Somali money transfer industry

Funds transfer services have become a large industry in Somalia, with the country now offering some of the most advanced and competitively priced telecommunications and internet services in the world.[13] An estimated $1.6 billion USD are annually remitted to the region by Somalis in the diaspora via money transfer companies.[14] The latter include Dahabshiil, Qaran Express, Mustaqbal, Amal Express, Kaah Express, Hodan Global, Olympic, Amana Express, Iftin Express and Tawakal Express. Most are credentialed members of the Somali Money Transfer Association (SOMTA), an umbrella organization that regulates the community's money transfer sector, or its predecessor, the Somali Financial Services Association (SFSA). A unique feature of the Somali funds transfer companies is that they all charge the same low commission of 5% for sending amounts of up to approximately $1000, a fee range that encompasses the vast majority of household Somali remittances. For amounts greater than $1000, these companies charge commission fees of between 3%-4%, significantly lower than Western Union's 7.1% fee and MoneyGram's 7.2% fee for sending the same amount to Ethiopia. The bulk of remittances are sent by Somalis to relatives in Somalia, a practice which has had a stimulating effect on that country's economy.[15][16]

Company overview

Branches and services

A Dahabshiil franchise outlet on Morse Road in Columbus, Ohio.

Dahabshiil is the largest of the Somali money transfer operators (MTO), having captured most of the market vacated by Al-Barakaat. The firm has its headquarters in London and employs more than 2000 people across 144 countries, with 130 branches in the United Kingdom alone, a further 130 branches in Somalia, and 400 branches globally, including one in Dubai. The company provides a broad range of financial services to international organisations, as well as to both large and small businesses and private individuals.[15][13][16] It invests in state-of-the-art technologies in order to offer both SMS notification and 24 hour online transfers to its customer base. The firm also employs technology to assure security and to satisfy international protocols and procedures aimed at combating money laundering, terrorism, and other illegal usage.[13]

Community investment

Dahabshiil invests 5% per cent of its profits into community projects aimed at improving schools, hospitals, agriculture and sanitation services. It also sponsors a number of social events, including the Somali Week Festival and the Somali Youth Sports Association in the UK, which help to promote understanding and cooperation through Somali art and culture and sport, respectively.[15] After the tsunami of 2005, the company helped provide immediate relief to the people in the regions of Somalia that were most affected.[13] In 2009, the firm also donated $20,000 toward the establishment of a state-of-the-art mental health facility in Garowe, the administrative capital of the northeastern Puntland region of Somalia.[17]

Compliance

Dahabshiil’s integrated services are managed according to strict international regulations to combat terrorism, money laundering and other illegal activities.[18] The firm is a member of the International Association of Money Transfer Networks (IAMTN), the UK Money Transmitter Association and the USA Money Transmitter Association, and is fully compliant with AML (Anti Money Laundering) regulations.[19][20]

In 2010, Dahabshiil became the first international payments firm to achieve authorisation from the UK Financial Services Authority (FSA), under the Payment Services Regulations of that year which demand the highest standards of security, customer protection, transparency and speed of delivery.[21]

Awards

In 2008, Dahabshiil's CEO, Abdirashid Duale, was awarded Top Manager of the Year by the International Association of Money Transfer Networks in recognition of the outstanding services that the firm offers its clients.[13] This was followed in 2010 with the UK's Mayor of Tower Hamlets award for excellence in the community, which recognizes the "outstanding contribution" Dahabshiil has made to the local, national and international Somali community over the last 40 years.[15]

References

  1. ^ Tower Hamlets Recorder
  2. ^ Tower Hamlets Recorder
  3. ^ Forbes Magazine
  4. ^ UK Somali Remittances Survey
  5. ^ Tower Hamlets Recorder
  6. ^ New York Times
  7. ^ How We Made It In Africa
  8. ^ Overseas Development Institute
  9. ^ COMPAS Publications
  10. ^ Global Security
  11. ^ Hiiraan
  12. ^ Harowo
  13. ^ a b c d e Cite error: The named reference Forbes was invoked but never defined (see the help page).
  14. ^ "Somalia". World Factbook. Central Intelligence Agency. 14 May 2009. Retrieved 31 May 2009.
  15. ^ a b c d Cite error: The named reference Towhamrec was invoked but never defined (see the help page).
  16. ^ a b UK Somali Remittances Survey
  17. ^ Puntland leader launches welfare agency
  18. ^ Somalia JNA
  19. ^ International Association of Money Transfer Networks
  20. ^ Harowo
  21. ^ Financial Services Authority

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