The Foreign Exchange and Remittance Group (FERG), which represents exchange houses in the UAE, declared that fees for remitting money for expatriates will see a 15 percent increase on Monday. This adjustment equates to an additional Dh2.5 on current rates.
According to a Khaleej Times report, FERG stated that this decision received the necessary approval from the authorities and will be applied to transactions conducted through the physical branches of the exchange houses. However, remittances made through mobile applications are expected to remain unaffected or could even see a reduction to stay competitive in the digital arena.
Mohammad A. Al Ansari, the chairman of FERG, emphasized that the fee hike is essential for maintaining the quality of services amidst evolving regulatory demands and rising operational costs. He noted that fees had not been increased for the last five years, despite these challenges.
The UAE is recognized as one of the largest markets for remittances globally, with significant amounts of money being sent to countries like India, Egypt, Pakistan, Bangladesh, the Philippines, and others in Asia and the Middle East. With foreign workers making up about 85% of the country’s population, the impact of this fee increase could be widespread.
This adjustment marks the first fee modification by the exchange houses in five years, aiming to address the increased costs associated with providing remittance services since the last update.