UAE Exchange Houses Raise Remittance Fees by 15 Percent

Asma Ahmed - | UAE

The majority of money sent from the Emirates goes to countries like Bangladesh, India, Pakistan, Egypt, and Pakistan, making it one of the biggest nations for international money transfers.

The United Arab Emirates (UAE) stands out as one of the globe's leading destinations for remittances, with a significant portion of these transactions directed towards countries like India, Egypt, Pakistan, Bangladesh, and the Philippines.

On Monday, an announcement was made regarding a 15 percent increase in remittance fees for expatriates transferring money from the UAE. The Foreign Exchange and Remittance Group (FERG), which represents exchange houses all over the UAE, conveyed this decision that had received approval from the authorities. The fee adjustment amounts to an additional Dh2.5.

FERG clarified that this fee revision applies specifically to remittance services facilitated through physical branches of exchange houses. However, charges for remittances conducted via mobile applications are anticipated to remain unaffected or possibly even reduced to maintain competitiveness in the digital realm.

Mohammad A. Al Ansari, Chairman of FERG, emphasized that this adjustment is imperative for exchange houses to sustain their service standards amidst evolving regulatory demands and rising operational costs. Remarkably, this fee alteration marks the first in five years, underscoring the industry's commitment to maintaining stable pricing despite escalating expenses.

The UAE's prominence as a remittance hub is underscored by the substantial volume of transfers to nations such as India, Egypt, Pakistan, Bangladesh, the Philippines, and other countries in Asia and the Middle East. Notably, the UAE hosts a significant foreign workforce, constituting nearly 85 percent of its population.

FERG further clarified that this fee adjustment is a necessary response to cost escalations since the last revision, demonstrating the exchange houses' dedication to meeting operational demands while ensuring financial viability.

In essence, the decision to adjust remittance fees reflects the dynamic nature of the financial landscape in the UAE, balancing the need for operational sustainability with the imperative to provide efficient and competitive services in the realm of global remittances.

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Asma Ahmed
Asma Ahmed
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