UAE Remittance Market Research Report, 2029

The United Arab Emirates (UAE) remittance market is a vital component of the country's financial landscape, driven by its large expatriate population, which constitutes around 90% of the total population. The UAE is a global remittance hub, ranking second in outbound remittances worldwide, just behind the United States. Expatriates regularly send funds back to their home countries, with the primary purposes being family support, personal investments, overseas business interests, saving plans, and education fees. Popular remittance channels include traditional exchange houses like Al Ansari Exchange, Lulu Exchange, and Al Rostamani Exchange, as well as digital platforms and fintech solutions that offer cost-effective and efficient services. The UAE government has implemented initiatives to reduce remittance costs and improve financial inclusion, further supporting the growth of the remittance market. The UAE remittance market has evolved into a global hub, driven by its large expatriate population, which constitutes around 90% of the total population. Historically, the UAE has been a significant sender of remittances, ranking second globally, just behind the United States. The market is regulated by the Central Bank of the UAE (CBUAE), which ensures compliance with international standards, including anti-money laundering (AML) and counter-terrorist financing (CFT) measures. The CBUAE mandates licensed financial institutions to provide clear information about fees and exchange rates, promoting transparency and consumer protection. Additionally, the CBUAE oversees the licensing and monitoring of exchange businesses, ensuring they adhere to strict regulatory requirements. These policies aim to maintain the integrity and efficiency of the remittance market while fostering innovation and financial inclusion. According to the research report "United Arab Emirates (UAE) remittance Market Research Report, 2029," published by Actual Market Research, the United Arab Emirates (UAE) remittance market is anticipated to grow at more than 7.53% CAGR from 2024 to 2029. The remittance market in the UAE is experiencing significant growth, driven by the country's large expatriate population, which constitutes around 90% of the total population. This demographic regularly sends money back to their home countries, making the UAE the second-largest hub for outbound remittances globally, just behind the United States. Key trends in the market include the increasing adoption of digital remittance services, which offer convenience, cost-effectiveness, and speed compared to traditional methods. The UAE government's support for digital financial services and advancements in fintech has further propelled this growth. Major players in the market include traditional exchange houses like Al Ansari Exchange, Lulu Exchange, and Al Fardan Exchange, as well as digital remittance providers such as TransferWise, Remitly, and PayBy3.

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The UAE remittance market is segmented by type into inward and outward remittances. Inward remittances involve funds being received in the UAE from abroad, often by expatriates sending money back home to support their families. These transactions are facilitated through various channels, including traditional banks, digital platforms, and money transfer operators like Western Union and MoneyGram. Outward remittances involve funds being sent from the UAE to other countries, primarily to support families and communities in the sender's home country. The market also includes digital remittances, which use internet services or mobile applications to facilitate cross-border money transfers, bypassing traditional banking channels and reducing transaction costs. Prepaid cards are another product type, allowing recipients to access funds in a flexible and convenient manner. The market is characterized by a mix of traditional and innovative solutions, with a growing emphasis on digital platforms to enhance efficiency and accessibility. The regulatory framework ensures the safety and transparency of these transactions, with the Central Bank of the UAE (CBUAE) and the Financial Intelligence Centre (FIC) playing pivotal roles in overseeing compliance with international standards. The UAE remittance market is segmented by platform type into several key categories, each catering to the specific needs of senders and recipients. Traditional banking channels remain a significant segment, offering reliable and secure remittance services through established financial institutions. These banks provide a wide range of services, including wire transfers and international money orders, ensuring compliance with regulatory standards. Money transfer operators (MTOs) like Western Union and MoneyGram are also prominent, providing convenient and accessible remittance services globally. These operators have extensive networks and partnerships, facilitating cross-border transactions efficiently. Digital platforms have gained significant traction, leveraging internet services and mobile applications to offer cost-effective and user-friendly remittance solutions. These platforms bypass traditional banking channels, reducing transaction costs and enhancing accessibility, especially for users in remote areas. Fintech companies are emerging as key players, introducing innovative solutions such as blockchain technology and peer-to-peer transfers to streamline the remittance process. These companies focus on improving transaction speed, security, and transparency, catering to the growing demand for digital financial services. The regulatory framework ensures the safety and transparency of these transactions, with the Central Bank of the UAE (CBUAE) and the Financial Intelligence Centre (FIC) playing pivotal roles in overseeing compliance with international standards. The UAE remittance market is segmented by channel type into several key categories, each catering to the specific needs of senders and recipients. Traditional exchange houses like Al Ansari Exchange, Lulu Exchange, and Al Rostamani Exchange have long been the backbone of the remittance market, offering reliable and accessible services for expatriates sending money home. These exchange houses have extensive networks and partnerships, facilitating cross-border transactions efficiently. Bank transfers are another significant channel, providing a secure and regulated method for remittances. Banks offer a range of services, including wire transfers and international money orders, ensuring compliance with regulatory standards. Digital platforms have gained significant traction, leveraging internet services and mobile applications to offer cost-effective and user-friendly remittance solutions. These platforms bypass traditional banking channels, reducing transaction costs and enhancing accessibility, especially for users in remote areas. E-transfers and app-based transfers are becoming increasingly popular, with companies like PayBy, TransferWise, and Remitly leading the way in providing innovative and efficient remittance services. These digital solutions offer real-time transfers, competitive exchange rates, and transparent fee structures, appealing to both expatriates and locals alike. The regulatory framework ensures the safety and transparency of these transactions, with the Central Bank of the UAE (CBUAE) and the Financial Intelligence Centre (FIC) playing pivotal roles in overseeing compliance with international standards.

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Nikita Jabrela

Business Development Manager

The UAE remittance market is segmented by end user type into several key categories, each catering to the specific needs of senders and recipients. Individuals, primarily expatriates, are the primary end users, regularly sending money back to their home countries to support their families. These remittances play a crucial role in household incomes and contribute to the economic development of recipient countries. Personal transfers cover expenses such as education fees, healthcare costs, and family support, maintaining financial connections across borders. Small businesses also utilize remittance services for international transactions, including payments to suppliers, partners, and employees abroad. Non-governmental organizations (NGOs) and charitable organizations use remittance services to transfer funds for humanitarian aid, development projects, and disaster relief efforts. Financial institutions act as intermediaries, facilitating remittance transactions and providing services to both individual and corporate clients. The regulatory framework ensures the safety and transparency of these transactions, with the Central Bank of the UAE (CBUAE) and the Financial Intelligence Centre (FIC) playing pivotal roles in overseeing compliance with international standards. Considered in this report • Geography: Global • Historic Year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Global Remittance Market with its value and forecast along with its segments • Region & country wise Remittance market analysis • Application wise Remittance distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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By Types • Inward remittance • Outward remittance By Platform • Non-Digital • Digital By Channel • Bank • Money Transfer Operators (MTO) • Mobile banking/Online platform • Others By End User • Business • Personal The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.