How to send money from UAE internationally?

Sending money internationally from the United Arab Emirates is a common practice for its vast expatriate population, offering a variety of efficient and regulated methods to ensure your funds reach their destination safely and quickly, no matter where your loved ones reside. This comprehensive guide, meticulously compiled by the www.few.ae team, will walk you through the primary avenues for international money transfers from the UAE, helping you choose the best option for your needs and ensure a seamless financial connection across borders.

Traditional Banking Services: Reliable and Secure

Your local bank in the UAE is often the first port of call for international money transfers, offering a robust and secure way to send funds worldwide. Major banks like Emirates NBD, HSBC UAE, First Abu Dhabi Bank (FAB), Mashreq Bank, and Abu Dhabi Commercial Bank (ADCB) all provide comprehensive international transfer services. You can typically initiate these transfers through various channels:

• Online Banking and Mobile Apps: Most UAE banks have user-friendly online platforms and mobile applications that allow you to set up international transfers from the comfort of your home or on the go. You’ll usually need to add a new beneficiary (recipient) first, which might involve a security step like a One-Time Password (OTP) or a Secure Key verification.
• Bank Branches: If you prefer a face-to-face interaction or need assistance with complex transfers, visiting a bank branch is always an option. A bank representative can guide you through the process and ensure all details are correct.
• ATM Transfers: Some banks offer limited international transfer services through their ATMs, typically for pre-registered beneficiaries.

Key details required for bank transfers usually include: the recipient’s full name, their bank account number (often an IBAN for European transfers), the recipient bank’s SWIFT/BIC code, and the recipient bank’s name and address. While banks offer security and convenience, their exchange rates might not always be the most competitive, and fees can sometimes be higher compared to other options. For example, a standard SWIFT transfer could incur fees ranging approximately from AED 50 to AED 100, though some banks offer fee-free transfers to certain corridors like India via services such as Emirates NBD’s DirectRemit, which can even complete transfers in under 60 seconds to specific banks.

Exchange Houses: Competitive Rates and Accessibility

Exchange houses are incredibly popular in the UAE, particularly among the expatriate community, due to their competitive exchange rates, lower fees, and widespread accessibility. Companies like Al Ansari Exchange, LuLu Exchange, Joyalukkas Exchange, and Al Fardan Exchange have numerous branches located across all emirates, often in malls, residential areas, and commercial districts.

• Walk-in Services: You can easily walk into any branch, fill out a simple form, and send money. You’ll need to present your Emirates ID or passport for identification.
• Online and App Services: Many exchange houses have also embraced digital platforms, allowing you to register, add beneficiaries, and initiate transfers online or through their mobile apps. This combines the benefit of competitive rates with the convenience of digital transactions.
• Cash Pickup and Bank Transfers: Exchange houses offer various payout options, including direct bank account transfers and cash pickup services (where the recipient can collect cash from an agent location in their country).

Exchange houses are known for their generally lower transaction fees, which can range from approximately AED 15 to AED 30 for common corridors like India, Pakistan, or the Philippines. Their exchange rates are often more favorable than those offered by traditional banks, as they specialize in foreign exchange. It’s always a good idea to compare the exchange rates and fees across a few different exchange houses before making a transfer to ensure you get the best deal.

Online Remittance Platforms: Speed and Convenience

The digital age has brought forth a new wave of online remittance platforms that offer highly competitive rates and exceptional convenience for international money transfers. These platforms often leverage technology to reduce overheads, passing on savings to customers in the form of lower fees and better exchange rates.

• Mobile Apps and Websites: Services like Wise (formerly TransferWise), Remitly, Xoom (a PayPal service), and Western Union Digital allow you to send money directly from your UAE bank account or debit/credit card. Local digital wallets like Payit also offer international remittance services.
• Competitive Exchange Rates: These platforms typically offer mid-market exchange rates or very close to them, which can result in more money reaching your recipient.
• Transparent Fees: Fees are usually clearly displayed upfront, so you know exactly how much you’re paying. Some platforms even offer fee-free transfers on certain amounts or for specific corridors.
• Diverse Payout Options: Payouts can range from direct bank deposits to mobile wallet credits, or cash pickups at agent locations in the recipient’s country.

Using these platforms often requires an initial online registration and identity verification (KYC), but once set up, transfers can be remarkably fast, often arriving within minutes or a few hours for many popular corridors.

The Hawala System: An Informal Network

The Hawala system is an informal value transfer system that operates outside traditional banking channels, relying on a network of brokers (Hawaladars) based on trust. While it offers speed and is often favored for its lower costs and ability to reach remote areas without formal banking infrastructure, it’s an unregulated system. The UAE Central Bank has taken steps to regulate Hawala by requiring Hawaladars to register and maintain transaction records, primarily for anti-money laundering purposes.

While Hawala can offer highly competitive exchange rates and minimal fees, using an unregulated system comes with inherent risks, including a lack of recourse if something goes wrong. For most individuals, especially for significant amounts, it is generally recommended to use regulated and licensed financial institutions (banks, exchange houses, or licensed online platforms) to ensure the safety and legality of your international money transfers from the UAE.

Regulations and Best Practices

The Central Bank of the UAE (CBUAE) regulates all financial institutions involved in money transfers, ensuring compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations.

• Required Information: For any international transfer, you’ll generally need to provide your full name, Emirates ID (or passport for tourists), the beneficiary’s full name, bank account details (or cash pickup details), and the purpose of the payment. For transactions of AED 3,500 or more, more detailed information about both the sender and receiver might be required.
• Transaction Limits: Most service providers have daily or monthly transaction limits. These vary depending on the platform, your verification level, and the destination country.
• Compare and Contrast: Always compare the exchange rate and fees across different providers before making a transfer. A seemingly small fee might hide an unfavorable exchange rate that costs you more in the long run. Use online calculators offered by different services to see exactly how much your recipient will receive.
• Security: Only use licensed and reputable financial institutions or online platforms. Be wary of unsolicited offers or individuals promising exceptionally good rates through unofficial channels. Ensure your online transactions are protected with strong passwords and two-factor authentication.
• Proof of Transfer: Always keep a record or receipt of your transaction. This includes the transaction reference number (like MTCN for Western Union) which can be used to track your transfer.

Whether you choose the traditional security of a bank, the cost-effectiveness of an exchange house, or the speed of a digital platform, the UAE provides a robust and diverse ecosystem for sending money internationally, ensuring that your financial connections remain strong, no matter the distance. What country are you looking to send money to, and what kind of transfer speed are you hoping for?