UAE Expats Increasingly Drive Shift To Digital Remittances

The UAE's expatriate population is rapidly embracing digital channels to send money home, underscoring a structural shift in one of the world's largest remittance hubs.

A new study from Visa shows that nearly two in three residents now prefer mobile apps and digital platforms over physical exchange houses for cross-border transfers, citing convenience, privacy, and speed as key reasons.

The findings, part of Visa's Money Travels: 2025 Digital Remittances Adoption Report, highlight how financial technology is transforming the UAE's remittance landscape.

According to the survey, 50 per cent of respondents said ease of use was their primary motivation for choosing digital channels, while 46 per cent pointed to safety, privacy, and faster processing. An overwhelming 95 per cent of UAE residents send money abroad at least once a year, with nearly half doing so to cover family or humanitarian needs, while others provide regular household support or respond to emergencies.

This digital pivot comes at a time when the UAE remains the world's third-largest sender of remittances, after the US and Saudi Arabia. According to Statista, transaction values in the UAE are projected to grow at an annual rate of 16.91 per cent to reach $6.59 billion by 2030, propelled by rising digital adoption and population growth.

Salima Gutieva, Visa's vice president and country manager for the UAE, said the shift reflects deeper changes in how expatriates manage financial support for their families overseas.“For people in the UAE, digital payments are increasingly central to how they provide support to their families and communities around the world,” she said.“As one of the world's largest remittance hubs, the UAE plays a critical role in enabling these flows, and Visa is partnering with financial institutions to deliver simpler, faster and more secure ways to transfer money internationally.”

Visa's innovations include Visa Direct, which allows real-time money transfers to billions of cards, bank accounts, and wallets worldwide. In the UAE, Visa has also rolled out Visa+, enabling users to send international transfers using just a mobile number.

The broader remittance market in the UAE is also undergoing transformation. According to the Central Bank of the UAE, outward personal remittances reached Dh183 billion in 2024, up from Dh169.2 billion the previous year, with India, Pakistan, the Philippines, Egypt, and Bangladesh among the top recipient countries. Traditionally dominated by physical exchange houses, this sector is increasingly being contested by digital-first players such as Wise, Revolut, PayPal, and UAE-based start-ups like Al Ansari Exchange's digital arm and LuLu Money, which have been aggressively expanding their app-based offerings.

Industry analysts note that the pandemic accelerated digital adoption, as mobility restrictions forced consumers to experiment with online transfers. Once tested, many users discovered digital channels to be faster, safer, and often cheaper. However, high transaction fees remain a persistent barrier. Visa's survey found that 32 per cent of respondents in the UAE cited high costs as the main pain point when sending money, while 27 per cent pointed to fees on the receiving end.

“The remittance market is highly price-sensitive, especially in the UAE where millions of blue-collar workers send small sums home each month,” said a Dubai-based payments consultant.“Digital platforms have improved transparency and speed, but unless fees are reduced further, many still prefer traditional exchange houses for certain corridors.”

“As the digital shift accelerates, competition between traditional exchange houses and fintechs is intensifying. For now, the clear winner appears to be consumers, who have more options than ever to move money quickly, safely, and seamlessly across borders,” said Sajith Kumar P.K, group CEO & managing director of IBMC Financial Professionals Group.

The shift towards digital remittances in the UAE mirrors a global trend. The World Bank estimates that digital remittances will account for nearly half of global flows by 2030, up from about 35 per cent today. The Middle East, with its large expatriate population and reliance on cross-border payments, is expected to be among the fastest adopters.

For the UAE, where more than 85 per cent of residents are expatriates, the stakes are particularly high. Digital remittances are not just about convenience; they are increasingly seen as essential financial lifelines for families abroad. Industry experts argue that lowering costs and expanding financial literacy will be critical to sustaining the momentum.

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