February 25, 2024
Exchange Houses

Exchange Houses In a significant development announced on Monday, the Foreign Exchange and Remittance Group (FERG), the representative body for exchange houses in the UAE, shared news of a 15 percent increase in remittance fees for expatriates. This fee adjustment, equating to Dh2.5, has received official approval from the relevant authorities.

Branch-based Fee Hike

FERG specified that the fee increase specifically pertains to remittance services conducted through physical branches of exchange houses. This move is designed to address changing regulatory requirements and associated operational costs, ensuring the continued delivery of high-quality services. Notably, this marks the first fee adjustment in five years for exchange houses.

Digital Competitiveness: Mobile Apps Unaffected

While the fee hike impacts services provided through physical branches, remittances facilitated via mobile apps are expected to remain either unchanged or potentially reduced. This strategic decision aims to maintain competitiveness in the digital realm, acknowledging the significance of technological advancements in financial services.

UAE’s Remittance Landscape

The UAE stands as one of the world’s largest remittance markets, with substantial outbound remittances directed towards countries like India, Egypt, Pakistan, Bangladesh, the Philippines, and others in Asia and the Middle East. The UAE’s sizable foreign worker population, comprising nearly 85 percent of the total, underscores the critical role of remittances in the country’s economic landscape.

Strategic Adjustment in Response to Costs

FERG emphasized that the fee adjustment is a proactive response to evolving financial landscapes, ensuring the sustainability of high-quality services for the expatriate community in the UAE. By addressing increased costs incurred by exchange houses since the last adjustment, this move aligns with strategic considerations for the continued provision of essential financial services.

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