UAE’s 15 per cent remittance fee hike at currency exchange outlets comes into effect

UAE’s 15 per cent remittance fee hike at currency exchange outlets comes into effect

The majority of remittances out of the UAE still go through outlets operated by currency exchange houses. This is where the 15 per cent fee hike has come into effect. Image Credit: Gulf News Archive

Dubai: UAE residents have now started paying the additional 15 per cent – or Dh2.5 – each on their remittances when transacting through physical outlets operated by currency exchange houses. The hike in remittance fee is the first such in 5 years and was initially planned from early April.

But leading exchange houses only started actively implementing the hike late April or from this month, thus allowing more time for their customers to get used to the higher charges. The move seems to be paying off, according to industry sources, with remittances done through physical outlets continuing to record sizeable numbers.

The 15 per cent hike does not apply to remittances done through banking or digital platforms operated by the likes of e& money, du and fintechs.

So far this month, “We're seeing significant increases in remittance activity across our omni-channel network – outlets and via the app,” said Adeeb Ahamed, Managing Director of LuLu Financial Holdings. “Both the actual transaction volumes and values are spiking compared