If you are planning to leave the UAE for good, then one thing you will need to consider is how to move your savings back to your home country. We teamed up with IFX UK Ltd, an FX company based in the DIFC, to source the best tips to save money when transferring your money back home.
Here is our quick guide to help you make the right choice:
1. Check Current Exchange Rates from UAE Dirham to Your Local Currency
The first step in the process is to know the rate at which UAE Dirhams convert to your home currency. This will be the baseline for all your negotiations with your bank or FX provider. There are readily available websites and tools online that can help you with this. Tools such as XE app, as well as websites like Bloomberg and Oanda will give you an indication of where the exchange rate is trending. Additionally, services like Wise (formerly TransferWise) and Remitly are gaining traction for their competitive rates and transparency. Before you initiate a transfer, take a few minutes to compare these options and choose the one offering the best rate for the day.
2. Explore All Your Transfer Options
Aside from your local bank, there are a few channels to send money back to your home country. These can range from mall-based exchange houses, such as UAE Exchange, Western Union, Al Rostamani, and Al Ansari, to more specialized, independent FX (foreign exchange) providers based in the DIFC. Get in touch with their representatives and ask them for a quote to transfer money from Dubai.
3. Compare Quotes from Each of These Channels
Whether it is a bank, an exchange house or an FX company, every provider has their own fees associated with a Dubai money transfer; the main one being the profit (or “spread”) they take on the transaction. On average, banks charge around 3-5% with exchange houses and specialized providers will charge less (1-2%). In some cases, there may be a separate transaction fee on top of their spread.
4. Negotiate
Not everyone is comfortable negotiating a discount, but you should know that the rate you get from your bank or FX provider is negotiable. Getting competitive quotes from several providers can help with your negotiation, and your FX provider will be willing to shave off a few dirhams if you suggest that you might switch to another channel.
5. Choose the Right Time to Transfer
The exchange rate fluctuates daily, and even small changes can impact how much money your recipient will receive. Monitoring the market and choosing the right time to transfer money is essential to maximize your transfer amount.
If your transfer is not urgent, consider using a service that allows you to set rate alerts. Wise, for instance, has a feature where you can get notified when the exchange rate reaches your desired level. This helps ensure that you transfer your money at the most favorable time.
6. Check the Fine Print
Whenever you decide on which company to use, one other thing to consider is the professional integrity of the company. In the UAE, there are two main types of regulations – the Central Bank which is the body that the local exchange houses report to, and DFSA (Dubai Financial Services Authority) which is an independent regulator similar to the FCA (Financial Conduct Authority) where FX companies are registered.
Both regulators require an FX company to have a safeguard on client funds and have strict auditing processes on the company’s practice. Your FX provider should voluntarily present their registration details to you. Once you’ve secured a reliable FX provider, you can focus on other aspects of your international move. If you are planning on relocating, you can book international movers and packers to make your relocation hassle free.
This article has been contributed by IFX UK LTD: Founded in 2005 with a global presence, IFX has over 100 employees and more than 40,000 companies and individuals manage their FX exposure.
