United Arab Emirates has authorized a minimum 15% increase in fees for money exchange services, translating to an additional charge of at least 2.5 AED per transaction, this fee revision is exclusively applicable to in-branch transactions, while fees for transactions conducted through digital applications of exchange and money transfer companies are set to remain unchanged, or may even decrease.
The decision, meticulously outlined by the UAE’s financial oversight bodies, is part of a broader initiative to cultivate a competitive, secure, and resilient financial sector. By adjusting the fee structure upwards by no less than 15%, exchange companies are expected to witness a significant boost in their operational revenues, thereby contributing to a more robust financial ecosystem attractive to global investments and partnerships.
Financial analysts are poised to monitor the ripple effects of this policy on the economic fabric of the UAE, evaluating its capacity to balance business sustainability with consumer fairness. The move is also expected to recalibrate market dynamics, potentially influencing consumer spending habits and remittance flows in the long term.
Despite the modest increase in fees, the anticipated average cost of money transfers is expected to remain at about 3.5 percent. This rate is significantly lower than the global average.
