JobXDubai

In a significant development for expatriates and residents alike, the UAE’s exchange houses are set to hike their remittance fees by an additional 15%, following regulatory endorsement. This update was announced by the Foreign Exchange and Remittance Group (FERG), highlighting a pivotal shift for users of these services within the jurisdiction of UAE authorities.

For the first time in half a decade, this adjustment reflects an evolving financial landscape and the associated increased operational costs since the last revision. Expected to affect transactions conducted through physical branches, the change equates to an average increase of AED2.5 on remittance fees. On the brighter side, transactions carried out via mobile applications may see a price freeze or even a reduction, underscoring the competitive edge digital platforms continue to offer.

The decision stems from comprehensive market studies and dialogue with regulatory entities, aiming to balance the need for competitive service offerings with the reality of heightened operational demands. This move, while adjusting fees, aspires to keep the overall cost of sending remittances well below the global average and in line with the aims of the United Nations’ Sustainable Development Goals, which advocate for reducing the cost of remittance corridors to less than 5% by 2030.

Mohammad A. Al Ansari, Chairman of FERG, expressed his approval of this strategic decision, emphasizing the importance of evolving with the industry to ensure the sustained delivery of high-quality services amidst changing regulatory landscapes and operational expenses. This adjustment seeks not only to meet industry requirements but also to enhance customer experience by ensuring secure, efficient, and comparatively affordable remittance services.

Despite the rise, the UAE continues to position itself as an attractive hub for expatriates by maintaining remittance costs significantly below the global average, thereby reinforcing its commitment to an efficient, customer-centric financial ecosystem.