UAE Embraces Digital Remittances: 5.5 Billion Dirhams Expected by 2030

The UAE's digital money transfer sector is set to more than double by 2030, reaching $1.5 billion compared to $600 million in 2024. This growth comes as more than half of the country's residents now prefer app-based transfers over traditional methods, making the UAE a global pioneer in digital financial services.

Hassan Fardan Al Fardan, CEO of Al Fardan Exchange and head of the fintech committee at the Banking and Money Transfer Institutions Group, says the digital transfer market will grow at 17.9% annually through 2030. The overall money transfer market in the UAE hit $39 billion in 2024 and shows no signs of slowing down.

What makes this shift interesting is how far ahead the UAE is compared to other countries. Digital channels now handle more than 11% of all transfers in the country, while the global average sits at just 1%. This puts the UAE way ahead in adopting new financial technology.

The change makes sense when you look at what people want. App-based transfers are faster, more transparent, and easier to use than traditional methods. But Al Fardan notes that face-to-face service still matters to many customers who value personal interaction and the reassurance it provides.

For the millions of expat workers in the UAE who send money home to support their families, these improvements matter a lot. India remains the top destination for transfers from the UAE, receiving over $22 billion in 2024. This figure is expected to grow 14.6% annually until 2029. Pakistan, Bangladesh, the Philippines, Egypt, Sri Lanka, and Nepal are also major destinations.

The tourism boom is creating another layer of demand in the currency exchange market. Popular destinations for UAE residents include France, the Maldives, Thailand, and Turkey, which drives demand for euros, Maldivian rufiyaa, Thai baht, and Turkish lira during holiday seasons.

At the same time, the UAE's record-breaking visitor numbers mean strong supply of currencies like the euro, British pound, and Chinese yuan. This two-way flow helps make the UAE one of the world's most active foreign exchange markets.

The sector got a boost recently when the European Parliament approved an updated list that recognizes the UAE's commitment to international anti-money laundering standards. Al Fardan says this recognition will make cross-border transactions smoother and strengthen trust with international partners.

Traditional banks and exchange companies now face pressure to keep up with digital platforms. Al Fardan says they need to offer smarter onboarding, smoother user interfaces, real-time exchange rates, and instant settlement to meet today's customer expectations.

The growth reflects broader economic trends in the UAE, including a steady increase in residents and a tourism sector that keeps breaking records. Exchange companies like Al Fardan are responding by expanding their branch networks in busy areas like airports and shopping centers while also investing in digital solutions like prepaid travel cards and instant transfer services.