Page 89 - AAE PR REPORT - August 2024

8/7/24, 11:29 AM 5% growth in individual remittances in the UAE - Aletihad News Center

The volume of remittances from the UAE exceeds Dh165.15 billion annually, with 45 percent being digital, according to

Central Bank data.

Exchange companies account for 30 percent of remittances, while banks handle the remaining 70 percent.

Banking sector transfers, via the UAE Funds Transfer System (UAEFTS), totalled Dh4.527 trillion from January to

March, a 16.2 percent increase from Dh3.896 trillion during the same period in 2023.

Al Ansari noted that the currency exchange sector grew by only 5 percent in the first half of the year despite significant
tourism activity.

This limited growth is attributed to the increasing preference among travellers for prepaid cards over cash.

The sector is expected to see greater growth in the second half of the year due to increased tourism and travel by

residents.

The UAE welcomed 25.3 million international tourists staying in hotels last year, a 28.5 percent increase.

The World Travel and Tourism Council expects this number to rise to 29.2 million this year, a 15.5 percent increase.

Regarding the increase in money transfer fees, Al Ansari stated that this is the first fee adjustment in five years.

The increase meets local and global regulatory requirements, rising costs and wages, and Emiratisation demands.

Exchange companies have received approvals to implement an optional fee increase of no less than 15 percent,
equivalent to only Dh2.5.

This increase applies only to branch transactions, while fees for transfers through digital applications remain
unchanged or may even be reduced due to the reliance on digital services.

The fee increase targets specific destinations to ensure the continued competitiveness of exchange companies and
affordability for customers.

According to the latest World Bank reports, the global average cost of sending $200 is 6.2 percent.

In the UAE, the average cost is around 3.5 percent, significantly lower than the global average, aiming to eliminate
remittance corridors with costs higher than five percent by 2030.

https://en.aletihad.ae/news/business/4505482/5--growth-in-individual-remittances-in-the-uae 2/2