Sending Money From Dubai? Get the Best Rates & Avoid Fees
May 1, 2025
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Sending money from Dubai, whether it's paying local bills or sending funds back home, is a common task in this bustling global hub 
[15]
[31]. But navigating the options can feel a bit overwhelming. You've got transfers within the UAE and international remittances to consider, each with its own system and costs [15]
[28]. The main things you'll likely worry about are how fast the money gets there, how much it will cost (thinking about both fees and exchange rates), and which service is the right fit for you 
[13]
[22][28]. This guide will break down the essentials of domestic and international money transfers from Dubai, drawing on common banking services available in the UAE, so you can make informed choices [15][13].
Domestic Transfers: Moving Money Within the UAE
When you need to send money to someone else's bank account within the UAE, you're making a domestic transfer [15]. This process is generally smooth and efficient thanks to the UAE Funds Transfer System (UAEFTS) [15]
[18]
[30]. Think of UAEFTS as the central highway for money moving between banks here, operated by the Central Bank of the UAE (CBUAE) [18]. It's a Real-Time Gross Settlement (RTGS) system, which basically means transfers are processed individually and almost instantly during operating hours [18].
Because UAEFTS settles transactions in real-time directly between banks via the CBUAE, your money usually arrives very quickly – often on the same business day, sometimes even faster [15][18]. The cost is typically low, and many banks might not even charge a fee, especially if you're transferring money to another account within the same bank [15]. To make a transfer, you'll usually need the recipient's International Bank Account Number (IBAN), their full name, and their bank's name, all easily done through online banking, your mobile app, or even at a branch [15]. Plus, since it's regulated by the CBUAE, you can trust the security of the system [15][18].
International Transfers: Sending Money Abroad from Dubai
Sending money outside the UAE, often called international remittance, is a bit more involved than domestic transfers [28]. Most international bank transfers rely on the SWIFT network (Society for Worldwide Interbank Financial Telecommunication) [15]. SWIFT doesn't move the money itself; it's a secure messaging system banks use globally to send payment instructions back and forth [15]. This often involves a chain: your bank (sending), potentially one or more intermediary banks, and finally, the recipient's bank [15].
To kick off an international transfer, you'll need more details: the recipient's full name and address, their bank account number (or IBAN, which is essential for many countries), their bank's SWIFT/BIC code (a unique global identifier), the bank's name and address, and often the reason for the payment for compliance purposes [13]. You can usually start this process online, via your bank's app, or at a branch [15]. Because of the multiple banks and systems involved, international transfers take longer, typically 1 to 5 business days, depending on the destination, currencies, and any intermediary banks used 
[14]. Thankfully, many banks now offer tracking, and the UAE has integrated its system with SWIFT gpi for better real-time tracking of payments coming into the country [15]
[16].
Decoding the Costs: Fees and Exchange Rates Explained
Explicit Transfer Fees
First, you have the obvious fees charged by the banks or services involved. The bank sending the money will usually charge a sending fee, which could be a flat amount or a percentage of what you send [14]
[27]. Then, if the money hops through intermediary or correspondent banks on its way, they might take a slice too – these charges can be unpredictable [22]
[6]
[9]
[21]
[34]. You might see options like 'OUR' (you pay all fees), 'SHA' (shared fees), or 'BEN' (recipient pays fees) which affect who covers these intermediary costs [21][34]. Finally, the bank receiving the money abroad might also charge a fee just for processing the incoming payment [22][9]. How you make the transfer matters too; sending money online or via an app is often cheaper than going into a branch[21]
[24][34].
The Exchange Rate Impact
This is where costs can get a bit sneaky. You'll see an exchange rate advertised, but it's rarely the 'mid-market rate' (the rate banks use between themselves, the one you see on Google) [31]
[26]. Instead, providers apply a margin or spread to that rate – essentially their profit built into the exchange [22][27]
[1][9]. Even a small percentage difference here can mean the recipient gets significantly less, especially on larger transfers [22][28]. Banks might add a spread of 2-3% or more, while other services might offer better rates [27]. Remember, these rates are constantly changing based on market conditions [24][34].
Calculating the Total Cost
Choosing Your Transfer Provider: Banks vs. Exchange Houses vs. FinTech
Banks
Using your bank feels secure and convenient, especially since the money comes directly from your account [28]. It can be a good option for very large sums or if you have linked accounts globally (like with HSBC's Global View) [13][28]. However, banks often come with the highest costs – combining higher transfer fees with less favourable exchange rate margins [31][14][26][28]. Transfers via banks can also be slower, sometimes taking several days [14].
Exchange Houses
These are incredibly popular in the UAE for remittances, with familiar names like Al Ansari Exchange, LuLu Exchange, and UAE Exchange (now often part of the Finablr group or operating independently) seen everywhere [31]. Their big advantage is usually much better exchange rates compared to banks, coupled with lower transfer fees (think around AED 20 on average) [31][14][26]. They are generally safe, accessible, and often faster than banks, though you might need to pay with cash at a branch to get the very best rates [31]. For smaller remittances, they often work out significantly cheaper than banks [14].
Online/Mobile Platforms (FinTech)
Players like Wise, CurrencyFair, XE, NOW Money, and Remitly are changing the game [31][28]. Their main draw is often the most competitive exchange rates, getting closer to that mid-market rate, along with transparent and low fees [31][27][28]. Everything is done conveniently online or through an app [28]. While they might have a smaller market share currently and some users might still be building trust compared to established names, they frequently offer the cheapest overall way to send money, particularly for smaller amounts [14][27].
Key Decision Factors
So, how do you choose? Consider these points:
•
•
Smart Strategies for Better Transfers & FX Management
Leverage Multi-Currency Accounts
Think about getting a multi-currency account offered by banks like Standard Chartered or HSBC (with their Global Money account), or other providers
[2]
[5]
[7]. These accounts let you hold funds in several different currencies all under one roof, often linked to a debit card [2][5][7]
[8]
[10]. The big win? You can spend directly in a foreign currency when travelling or shopping online, avoiding hefty conversion fees your bank might otherwise charge [2][5][8][10]
[20]. Plus, converting money between your currency 'wallets' within the account often comes with more competitive FX rates managed easily via an app [2][5][7].
Best Practices for Currency Exchange
When you need to exchange cash or make payments involving currency conversion, keep these tips in mind:
•
ATM Savvy: Using your foreign debit card at a local ATM can be cost-effective, but watch out for fees from both your bank and the local ATM [1]
[29][27]. Crucially, if the ATM asks whether to charge you in your home currency or AED, always choose AED to avoid unfavorable Dynamic Currency Conversion (DCC) rates [1]
[4][6].
Managing Exchange Rate Risk
Exchange rates go up and down, which can impact the value of your money (this is FX risk)
[12]
[17][31]
[32]. While complex hedging is for businesses, you can take simple steps. Since the UAE Dirham (AED) is pegged to the US Dollar (USD), there's no risk for AED-USD transactions [4]
[33]. For other currencies, holding funds in a multi-currency account allows you to convert money when the rate looks good and hold it for future use, protecting you from bad rate swings later [7][10][32]. Some multi-currency cards might even let you lock in a rate when you load funds 
[19][20]
[23]. If you have flexibility, timing your conversions for non-USD currencies when rates seem favourable can also help [10].
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