UAE Remains Major Remittance Market As Outward Transfers Jump 28% To Dh188.8 Billion

The Central Bank's data shows outward remittances remained significantly higher than inward flows, reflecting the UAE's continued role as one of the region's major remittance markets.

Money sent abroad through UAE exchange houses rise sharply in 2025, with outward remittances increasing 27.8 per cent year-on-year to Dh188.8 billion, according to the Central Bank of the UAE's Financial Stability Report 2025.

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Personal remittances made up the largest share of outward transfers at Dh115.7 billion, followed by trade remittances at Dh63.3 billion. Other remittances amounted to Dh8.5 billion, while investment-related transfers reached around Dh1 billion.

Money flowing into the UAE through exchange businesses also increased strongly, with inward remittances jumping 53.6 per cent year-on-year to Dh36 billion. Trade-related transfers accounted for the largest share at Dh22.8 billion, followed by personal remittances at Dh8.1 billion.

UAE targets Dh4.96 trillion by 2031

The growth in Islamic banking comes as the UAE advances its Islamic Finance and Halal Industry Strategy, approved by the Cabinet in May 2025.

The strategy aims to strengthen the UAE's position as a global Islamic finance hub by developing larger financial institutions, expanding Sharia-compliant services and supporting sukuk, investment and sustainable finance.

By 2031, the country is targeting Dh4.96 trillion in total Islamic finance assets, including about Dh2.6 trillion in Islamic banking assets.

The UAE also aims to raise the value of sukuk issuances listed in the country to more than Dh660 billion, while Islamic finance is expected to contribute around Dh27 billion to GDP by 2031.

Islamic banking assets jump 22%

The report also showed strong growth in the UAE's Islamic banking sector, with assets rising 22 per cent year-on-year to Dh1.329 trillion in 2025, while its market share reached 24.7 per cent.

Islamic banking assets have increased from around Dh857 billion in 2022 to Dh956 billion in 2023, Dh1.089 trillion in 2024 and Dh1.329 trillion last year.

The growth in remittance activity came as exchange businesses reported stronger earnings, with net profits increasing 8.2 per cent to Dh625.6 million in 2025.

The sector's overall capital position also increased 4.4 per cent to around Dh4 billion during the year.

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