Page 92 - AAE PR REPORT - January 2025

Challenges

The increase in interest rates over the past couple of years has resulted in some countries
having less availability of dollars because of the pressures on their economies, according to the
senior executive.
This has created a parallel market – people sending money through unofficial channels – and
that has impacted remittances to an extent, but the trend has subsided. For example, in Egypt,
once they decided to float their currency, the parallel market almost disappeared, he said.

Citing the challenge posed by FinTechs, Mr Al Ansari said exchange houses welcome
competition, but they want it to be fair and a level playing field.

Although a lot of FinTechs have established in free zones and provide services on the mainland,
they are not licensed by the Central Bank of the UAE, only by the free zone regulator.

“They don’t realise that you need to be licensed by the central bank to provide services in
dirhams. These FinTechs also do not offer an innovative solution or a revolutionary customer
journey, instead they opt for predatory pricing. They start offering free remittances and even
reward the customer with Dh50 to register on their platform and give them the service for free,”
he said.

“That is not sustainable for the organisation or the country in general, they are violating the laws
of the land and not contributing to Emiratisation, too. They're not contributing to creating jobs or
to the UAE tax regime. They also pose a risk to consumers.”

Al Ansari Exchange is working closely with the central bank, Ministry of Economy and free zones
to educate them so they can enhance their regulatory regime. The group chief executive said he
hopes to see some changes in regulations this year to prevent such violations by FinTechs.

However, he said that his company, “despite being a market leader”, was open to collaborate
with a FinTech that offers a technology that will reduce costs, is more efficient and has a
superior user interface.

Companies now need more manpower to go through all transactions with a fine-tooth comb
Rashed Al Ansari,
group chief executive, Al Ansari Financial Services

https://www.thenationalnews.com/business/money/2025/01/24/remittance-uae-al-ansari/