If you’ve recently moved to the UAE and wish to transfer some money back home, there are a variety of options available. Remittance services are those that allow individuals to transfer money for non-commercial purposes at a small charge. If you wish to send your money back home, the options available to you are discussed below.
For the sake of this article, we will assume you wish to convert and transfer AED to AUD (Australian Dollar).
Remittance Options in the UAE
Traditional banking services
Traditional banking services are the oldest remittance option available. Here, you are expected to take the amount you want to transfer to the bank in cash and deposit it. Once deposited, the amount will be transferred to the bank account in your foreign country.
Advantage: The biggest advantage of converting AUD from AED using this service is that you can verify who is handling your money. There is a lower margin for error since all transactions happen face-to-face.
Disadvantage: You have to physically go to the bank to complete this service and therefore, you have to set forth a date and time where you will be available. Furthermore, you may not get the best exchange rate.
Online banking services
Most banks provide online transfers of money that can be done through mobile banking or net banking. You aren’t required to be present in any bank to complete this type of transaction.
Advantage: This service is at the tips of your fingers and can be conducted any time and at any place. You can also check the conversion rates online and transfer when you receive the best rate.
Disadvantage: This service can’t be availed if the local bank and your foreign bank don’t have a formal partnership. Therefore, if the local bank in UAE does not have a legal partnership with a bank in Australia, you can’t convert and transfer AED using this service.
Exchange houses
These are the second most popular remittance options. They are used by various expatriates as well as local and foreign tourists. Several provide both online and offline transfer services.
Advantage: Exchange houses work especially with conversion and remittance services therefore they have high liquidity. You can easily get currency converted to AUD from AED without any hassle.
Disadvantage: There are hundreds of options available in the UAE. Therefore to compare and contrast the conversion rates, transfer fees and conversion fees will take time, dedication, and energy.
Online transfer services
This includes PayPal, Denarii Cash, and various other online money transfer services. These services allow you to receive Dirhams directly in your overseas bank account.
Advantage: Some of these are well-recognized businesses which mean when you use these, you don’t have to leave your home.
Disadvantage: They charge an upfront fee for their services. Often, these fees are steep and may be as high as 2.5%. Furthermore, you will also have to pay a conversion fee when you want to convert and withdraw the money.
These are the four remittance options in the UAE. When picking one, remember to do thorough research and comparison.