If you need to transfer money to the United Arab Emirates, forget about the old way of sending payments through high-street banks, and start using foreign exchange (FX) companies instead. They are a lot cheaper, they’re quicker, and you can make the transfer safely online. Most of the time, you can save up to 90% on fees when compared to banks.
Read this United Arab Emirates Money Transfer Guide carefully, and start saving time and money when sending money abroad.
Best For Large Money Transfers:
Money transfer provider since 1996 (the first in Europe outside the UK) 39 Currencies supported As cheap as 0.5% AED margin + No fees Offices in four continents including Asia (no office in UAE) Recently rebuilt mobile apps for both Android and iOS More than £6.2 billion transferred annually
The Guide’s Topics:
- Best Way to Send Money to the United Arab Emirates
- Best Company to Transfer Money from the United Arab Emirates
- Today’s Emirati Dirham Rates
- Reasons to Move Funds into the United Arab Emirates
- Regulation and Limitations
Best Company To Transfer Money To UAE
* Expected Rates reflect our rate expectations based on our research. We do not guarantee accuracy. For some companies we used a range of rates because they offer wholesale rates for large trades and higher rates for small trades.
Supported Countries & Payment methods
Currencies Direct allows you to send money to Dubai or any other city in the United Arab Emirates with zero fees from countries like the USA, the UK, Canada, Australia, India, Germany, and many more. By using them, according to the data in the table above, you are already saving AED 100 on fees alone.
But the biggest savings, especially when talking about large amounts, is when you take the currency exchange into consideration. Currencies Direct will provide a better currency exchange rate than any of your local banks, which translates into more money in the new currency.
With MoneyCorp, you will receive the same benefits as the previous company but also the guarantee of more than 35 years of experience in this business. This makes it older than some of the banks in the UAE, like Abu Dhabi Commercial Bank or Emirates NBD.
For more information or to get a free quote for your transfer, be sure to visit the website.
Best Company to Transfer Money from UAE
|Min. Transfer: £ / € 1,000.|
Transfer: Online or by Phone.
Why Them? 75,000+ Active Clients. 100+ Currencies Available. 98% Positive Client Feedback.
Supported Regions & Currencies
The United Arab Emirates has a large number of banks (some are foreign branches), which makes international money transfers to or from the UAE very simple. The Dubai Financial Services Authority (DFSA) has imposed very light restrictions or regulations on amounts of less than AED 100,000.
Currencies: With WorldFirst, you can send money from the UAE to practically anywhere in the world because it has access to over 100 international currencies. So whether you want to send money to common destinations like the United States, Canada, Australia, France, Spain, South Africa, or India or to smaller countries like Israel, Portugal, Cyprus, Sri Lanka, or even New Zealand, you are covered and still benefit from the zero fees transfers.
Today’s Foreign Exchange Rates for AED
United Arab Emirates (UAE) Dirham behaviour
Sharp changes in reserves warn that the currency peg is potentially unsustainable. Stresses are likely to be created mainly by big changes in crude oil prices and major dollar swings.
The UAE has a pegged currency with the dirham fixed against the dollar; 1 dollar equals 3.67 dirhams.
Although slight fluctuations are allowed, there will be no significant movement against the U.S. dollar unless there is a change to the currency peg. The value of the dirham against other global currencies will be determined solely by dollar movements.
The currency peg will come under stress through the trade account, a change in relative inflation rates between the U.S. and the UAE, or big dollar moves.
Intervention is required to keep the peg intact, which affects the level of currency reserves. Overall strains will, therefore, be illustrated mainly by changes in reserves; a sharp decline warns that the peg is increasingly unsustainable.
Oil accounts for close to 50% of revenues and the trade account will, therefore, weaken if oil prices decline, while higher prices generate pressure for a stronger currency.
A sharp increase in internal inflation, potentially through aggressive fiscal expansion, would increase pressure for a weaker currency.
Changes in the dollar’s global value can also create pressure for a peg break. A very sharp decline in the dollar increases pressure for the dirham to revalue, while a very strong dollar creates devaluation pressure.
Transfer Money to a UAE Bank Account
The United Arab Emirates is a federation of seven emirates with its capital in Abu Dhabi. It is one of the youngest countries if we consider that it was established in December 1971. The national currency is the Dirham (code: AED).
Business: Many will agree that the United Arab Emirates is mostly known for its oil and natural gas reserves. Lately, however, the country has focused on growing the non-oil sectors in order to protect and confer more stability for the country’s economy. As a result, the non-oil sectors now account for 69% of the UAE’s GDP.
Real Estate: Investments in properties and office buildings, or buildings in general, have been astronomical since the boom that the city of Dubai saw in recent years. According to Savills, the trend is going to be pretty much the same in the long term as the Gulf economy has clocked annual growth of at least 4% for the past three years.
Tourism: The travel and tourism industry in the UAE was responsible for supporting nearly half a million jobs in 2013, which represented 9.1% of total employment. Even though new data is not available, everyone suspects that these numbers have surely increased since then as cities like Dubai have become the Mecca for shoppers and are recognised as entertainment hubs.
The leap in real estate and infrastructure development in the recent years, has helped transform this country a global touristic destination. And this is in strong correlation with their vision of being less and less bound by the performance of oil prices. You can expand the life of your reserves of natural gas and oil as much as you can but, at some point, you are going to finish them all. But if you invest in tourism, you can have a steady income for the long term future.
Why Transfer Money from the UAE abroad
Even though the country is relatively small by having under 10 million people living in it, the number of outbound transactions is higher than most other countries with a more significant population. The growing tourism sector, the luxurious real estate taking the front pages of magazines and huge expat population calling it home, all this and more and transforming the United Arab Emirates in a substantial foreign exchange hub for the entire world.
Remittances: Just thinking about the fact that UAE citizens constitute only 13% of the total population as per the stats, we can quickly see how big the remittances market is in this country. Most of the expatriates are from India and Pakistan, countries that are usually put in the “poor” category. Considering this, the need for smaller and smaller fees for sending money abroad has brought up and grown the market to featured better and cheaper technology to make money transfers. The growth of the fintech sector helped millions of expats to send money back home for almost nothing.
Business payments: From selling oil to tourism and real estate transactions, more and more business is being done with abroad entities every day. That means many currency exchange transactions. Freelacing is also another sector that is growing and adds to the growing number of transactions made with business people from outside of the country.
Thinking Of Relocating To The United Arab Emirates?
If you are considering moving to the UAE and living there as an expat, you may find the following information helpful.
Advantages Of Moving To UAE:
- High Expat Salaries: Many expats relocate from fields such as teaching, law, and international business. Salaries on average are 40% higher than in the expat’s home country.
- Good Vacation: The average teacher in the UAE gets two months of paid leave per year plus national holidays.
- Health Benefits: 89% of employers cover health benefits.
Disadvantages Of Moving To UAE:
- Astronomical Housing Costs: Average apartment rent for a one-bedroom apartment can exceed USD 1,000 per month.
- Bureaucracy: It is difficult to deal with government offices and can be quite time consuming for expats.
- Cultural Misunderstandings: The Arab culture can be a challenge for many Westerners, especially women. Women should consider carefully whether they can handle different rights.
How Cheap Online Money Transfer Works
Foreign exchange companies specialise in dealing with currencies, and because they buy in bulk, they receive a wholesale price, much lower than any other institution. When a customer makes an international money transfer, they will actually help these companies exchange the currencies and thereby make a profit margin.
Depending on the amount of money you’re sending, some FX companies will allow you to send money to Dubai for free. This is why more and more real estate agents are using FX companies to ease the process of buying a house or other property overseas for their clients abroad.
UAE consists of:
- Abu Dhabi
- Ras al-Khaimah
- Umm al-Quwain
What you need to send money to UAE
- Bank Name and Address
- Swift Code
- Account Number
- Receiver’s Complete Name
After you provide all the details listed above, the process is simple:
- You create a free account with the company.
- Receive a quote from one of the dealers – be it online or by the phone.
- Send the money to your account so you can fund the transfer.
- Get a confirmation from the company (usually the same dealer that gave you the quote) that the transaction is completed.
Our Company Recommendation:
- Send Money to the United Arab Emirates: Companies that provide international money transfers to the United Arab Emirates.
- Send Money from the United Arab Emirates: Companies that take on Emirati Customers.
Regulations and taxes when transferring money to and from the United Arab Emirates
The United Arab Emirates’s (UAE) currency is the Emirati Dirham (Dh). The AED is fully convertible, and the UAE has an immense network of foreign and domestic banks, making transfers in and out of the UAE relatively simple.
The AED has been pegged to the US$ since 2002, at a rate of AED3.67 per US$.
The Central Bank of the UAE
The Central Bank of the UAE oversees payment systems, monitors the proper function of financial systems, and works to preserve price stability. Its oversight extends to monitoring the activity of all foreign exchange businesses, which must be registered through the bank.
There are no transfer restrictions on money going in and out of the UAE, with transfers being particularly simple in the UAE’s free zones. However, any large transfers must be reported to the authorities, and travellers must declare sums exceeding AED 100,000 before entering the UAE.
An estimated 80% of the population of the UAE are expatriates, with a significantly high proportion of migrant workers, many of whom send their income back to their home country.
Starting in January 2018, the UAE began imposing a VAT on remittances. The decision is intended to help the UAE government diversify its revenue streams and stop relying only on oil production as its primary income.
Taxation on foreign income
The UAE imposes relatively low taxes. Residents of the UAE are taxed on any foreign income. Non-residents are taxed only on income originating in the UAE. Double tax treaties are in place to avoid double-taxation.
Biggest banks in UAE
- Emirates NBD
- National Bank of Abu Dhabi
- Abu Dhabi Commercial Bank
- First Gulf Bank
- Dubai Islamic Bank