Sending money out of the UAE is something millions of expats do every month. The UAE has one of the world’s largest remittance markets — over $45 billion leaves the country annually.
Your bank will happily process the transfer. They’ll also quietly take 1.5-3% more than they should through a poor exchange rate, on top of a transfer fee. Over a year of regular transfers, that adds up to thousands of dirhams.
Here’s how the main options compare and which one to use.
Option 1: Your UAE Bank (Usually the Worst Choice)
Every UAE bank offers international wire transfers. Here’s what you actually pay:
- Transfer fee: AED 25-60 per transaction
- Exchange rate margin: 1.5-3% worse than the mid-market rate (the real rate you see on Google)
- Processing time: 2-5 business days for most international transfers
For a AED 5,000 transfer to the UK, a bank charging a 2.5% exchange rate margin takes an extra AED 125 — on top of the AED 30 transfer fee. That’s AED 155 total on a single transfer.
Banks aren’t transparent about the exchange rate component. They quote you a rate, but they don’t tell you what the mid-market rate is or how much they’ve added.
When to use your bank: For large one-off transfers where you want regulatory certainty, or for transfers to countries where specialist services have limited coverage.
Option 2: Wise (Best for Most People)
Wise (formerly TransferWise) is the clearest, cheapest option for most international transfers from the UAE.
How Wise works:
- Uses the mid-market exchange rate (the real rate, no markup)
- Charges a transparent fee of 0.4-1.5% depending on the currency and transfer amount
- Transfers typically arrive in 1-2 business days
- Available via app or web
Real cost example — AED 5,000 to GBP (UK):
- Wise fee: approximately AED 55-75
- Exchange rate: mid-market (you see exactly what you get)
- Recipient receives more than they would from a bank transfer
What Wise supports from UAE: Wise accepts UAE dirham transfers to 80+ countries. You can send to the UK, Europe, USA, Australia, India, Philippines, and most other major destinations.
Limitations:
- Not available for cash pickup — recipient needs a bank account
- Sending limits apply (higher limits require identity verification, which Wise handles online)
- Not suitable for same-day urgent transfers
Wise is regulated by the UAE Central Bank and operates as a licensed payment service provider.
Option 3: Remitly (Best for South Asian and Philippines Corridors)
Remitly specialises in personal remittances — money sent home by workers to family members. Their rates are particularly strong for India, Pakistan, Philippines, Bangladesh, Nepal, and Sri Lanka.
- Fees: AED 0-15 depending on the plan and transfer amount
- Exchange rate: Slightly worse than mid-market but competitive against banks
- Express transfers: Can reach recipients within minutes for some countries
- Cash pickup: Available in many destination countries (useful for recipients without bank accounts)
- App: Very easy to use; popular with first-time transfer users
Remitly often offers a promotional rate for first-time transfers that’s significantly better than standard rates. Worth checking.
Option 4: Exchange Houses (Best for Cash)
UAE exchange houses — Al Ansari, UAE Exchange, LuLu Exchange, and Al Rostamani — have physical branches throughout the UAE. They’re popular for:
- Cash-to-cash transfers (you hand over dirhams, recipient picks up local currency)
- Transfers to countries where bank accounts are less common
- Same-day transfers to South Asia, Southeast Asia, and Africa
Al Ansari Exchange is the largest and most widely recognised. They have over 200 branches across the UAE and offer competitive rates for popular corridors like India, Philippines, Pakistan, and Egypt.
Typical fees: AED 10-30 per transfer depending on destination and amount. Exchange rates are better than banks but not as sharp as Wise.
Best for: Sending cash to a recipient who doesn’t have a bank account, or when you prefer a walk-in experience and immediate confirmation.
Option 5: Western Union
Western Union is available at exchange houses and some convenience stores across the UAE. It’s one of the most globally available services — coverage in 200+ countries.
Fees: Higher than most alternatives, typically AED 25-75 depending on destination and speed.
Best for: Transfers to countries with limited digital financial infrastructure, or when the recipient specifically needs Western Union (some employers and individuals in certain countries only accept WU).
Not the first choice for regular transfers given the cost, but useful for hard-to-reach destinations.
Comparison for a AED 5,000 Transfer to India
| Service | Fee | Rate Type | Recipient Gets (approx.) |
|---|---|---|---|
| Emirates NBD | AED 40 | 2-2.5% markup | INR 109,000-111,000 |
| Wise | AED 65 | Mid-market | INR 114,000-115,000 |
| Remitly | AED 10 | Small markup | INR 112,000-113,000 |
| Al Ansari Exchange | AED 20 | Small markup | INR 112,000-113,000 |
| Western Union | AED 60 | 1.5-2% markup | INR 111,000-112,000 |
Figures are approximate and rates change daily. Always check the live rate on each platform before transferring.
UAE Regulations for International Transfers
The UAE does not restrict outbound remittances. You can send money abroad freely, and there are no taxes on international transfers.
However:
- Transfers above AED 3,500 typically require a valid Emirates ID at exchange houses
- Banks may ask about the purpose of large transfers (AED 50,000+)
- You’ll need to provide IBAN and SWIFT/BIC codes for the recipient’s bank account
- Some UAE banks have daily or monthly transfer limits via online banking — call your bank to increase if needed
There’s no withholding tax on transfers out of the UAE. What you send is what leaves.
Which Service Should You Use?
- Regular monthly transfers to family (any destination): Wise for most countries; Remitly for India, Philippines, Pakistan
- Cash pickup required: Al Ansari Exchange or Western Union
- Very urgent, large transfer: Your bank (slower but full regulatory coverage)
- Philippines, India, Nepal, Bangladesh: Remitly often wins on rates for these corridors
- UK, Europe, USA, Australia: Wise is typically the best option
Most expats in the UAE are sending money to one or two regular destinations. Set up accounts on both Wise and Remitly, compare rates before each transfer, and use whichever is better that month. Takes 30 seconds to check and can save you meaningful money.
If you’re looking to open a UAE personal bank account first, see: Best UAE Banks for Expats in 2026
For UAE corporate banking, including how to open a business account: How to Open a UAE Business Bank Account