Western Union cuts ties with its Riyadh partner

Saudi Arabia: Eight Western Union centers in Riyadh have been shut after the money transfer services provider terminated its contract with a local partner, threatening jobs.

Director of Corporate Communications Elena Shalneva confirmed the company had closed the so-called agent locations after cutting ties with Mohammed A. Al-Fanih and Partners for Exchange.
Shalneva, speaking from Germany, said the closures would not affect business in Saudi Arabia as Western Union already has two major agents, Al-Bilad Bank and Samba — operating in more than 130 locations. These strategic relationships, she said, provide other services besides money transfer.
Shalneva played down the closures, claiming it was “part of the normal course of business.
“The closure of a handful of locations that were opened by the third agent will not affect our business,” she added. She stressed that regulatory authorities in the Kingdom had no influence on Western Union’s decision to close the agents down.
Meanwhile, Shalneva confirmed Western Union was all set to announce new products and services for the Gulf region including Saudi Arabia.
Western Union currently serves millions of people in Europe, the Middle East, Africa and South Asia with more than 278,000 agent locations in about 160 countries.
More than 270 banks and postal institutions across the world are Western Union agents.
The Kingdom is home to about nine million foreign workers, many of them using Western Union to send money back home.