Modifying fees for money transfers in UAE banks

Abdallah Shahin - | Business

Some of the banks in the UAE have informed their customers of the change in the fees associated with sending money transfers by sending them letters.

Bringing down the cost of international money transfers

As of the 23rd of April in the following year, financial institutions plan to eliminate fees associated with international money transfers and domestic transfers made in dirhams, bringing them down to either zero or 37 dirhams, compared to the 75 dirhams that are required under the regulations that are currently in place.

Examples of the cost of money transfer fees increasing in some situations

According to letters that customers of these banks have received and which I have seen, the banks have also modified some fees related to money transfers within the country that use foreign currencies by raising them to 100 dirhams instead of 75 dirhams if the transaction was done using the branch. This change was made because the banks want to make more money off of these types of transactions.

Examples of how the value of fees for money transfers can be reduced

It will only cost 25 dirhams if it is completed using the smart application, which is a significant savings.

Free transfer of monetary funds

The messages indicate that any and all remittances that are received, the fees for which are covered by the sender, and which bear the code "OR" will be given without charge, irrespective of the total amount of the remittances.

Estimate the costs associated with making financial transactions.

The fees that are now in effect, which total 75 dirhams, have been amended to become as follows:

Free of charge and with no additional costs for amounts up to 500 dirhams can be transferred.

There is a cost of 37.5 dirhams attached to the transfer, which takes place when the value of the transfer is between 500.01 and 1000 dirhams.

Due to the fact that the amount being transferred is between 1000.01 and 1500 dirhams, there will be a fee of 50 dirhams assessed.

A fee of 75 dirhams must be paid for every transfer amount that is greater than or equal to 1500.01 dollars.

Transfer fees subject to a value-added tax

A value-added tax of 5% will be added to the total amount of the decreased and revised fees as well as those that have been increased, as stated in the messages that were given to consumers. This is the case unless it is specifically stated that the fee already includes tax or is exempt from it.

"Banks fight with each other to persuade clients to carry out money transfers," the banking expert Awatef Al-Harmoudi said. "They do this by cutting and altering costs on money transfers and transfers, in a desire to benefit from the sums received from this item."

Exemption from the payment of costs

In addition, she clarified that "transfers for which the sender pays fees, the beneficiary receives them for free," and that "for those that are sent with a (share or share) system, the sender pays half of them and the recipient the other half, and sometimes the recipient pays the full fee, if it is sent accordingly."

In addition to this, she mentioned that "transfers performed through banking platforms and smart applications are cheaper than those made in branches, and all possibilities are available to the customer, and he can choose what fits him."

Employing sophisticated software programmes for financial dealings

She made the point that clients can use the high-level technical infrastructure that banks provide, which is accessed through "online" or "smart" apps, for a price that is either decreased or eliminated entirely in many instances.

About Author

Abdallah Shahin
Abdallah Shahin
694 Total posts

Read Also

Dubai Real Estate Sector Reports $4.3 Billion in Transactions Last Week

Last week, Dubai's real estate sector saw a remarkable surge in transactions, with a total value exceeding AED15.9 billion ($4.3 billion), according to data released by the Dubai Land Department.

Qatar Real Estate Sector Achieves $110 Million in Weekly Transactions

Qatar's real estate sector recently witnessed a bustling week of transactions, amounting to more than QR398 million ($109.4 million) from June 9 to 13, 2024, according to official data from the Ministry of Justice's Real Estate Registration...

UAE: "Emirates Airlines" and "Flydubai" schedule 4.36 Mn seats for June flights

Data from OAG reveals significant growth in seat capacity for Emirates Airlines and Flydubai ahead of their summer flight schedules. Together, these airlines will offer approximately 4.36 million seats on international flights departing in June 2024....

UAE: First-class football clubs exempt from Dh5-million fines in recent decision

The UAE Football Association (UAEFA) has announced a significant initiative to support First Division clubs by waiving all accumulated fines totaling Dh5 million from previous seasons.

Dubai Unveils Major $78 Mn Reservoir Project to Enhance Water Storage Capacity

The Dubai Electricity and Water Authority (DEWA) has announced the commissioning of a new water reservoir in Enkhali, a strategic move aimed at safeguarding Dubai's water supply in the event of emergencies.

Vietnamese EV manufacturer "VinFast" launches new regional headquarters in Dubai

The Dubai International Chamber has played a pivotal role in supporting VinFast Trading and Production Joint Stock Company, a pioneering electric vehicle manufacturer from Vietnam, in establishing its regional headquarters in Dubai.

Abu Dhabi launches massive $6bn Arabian Hills project on Dubai to Al Ain road

The Arabian Hills Real Estate Development Company proudly unveils its flagship project, the Arabian Hills Estate, marking a significant milestone in the realm of real estate development in Abu Dhabi.

Urgent UAE: Implementing the “noon work ban” starting mid-June

The Ministry of Human Resources and Emiratisation has declared the implementation of a prohibition on working outdoors in direct sunlight and open areas. This ban will be in effect from June 15th until September 15th, between the hours of 12:30 PM...

UAE: 5 potential risks of “remote” work

The UAE Government Cybersecurity Council emphasized the significance of safeguarding the remote work environment, highlighting the potential hazards that users may encounter on their devices. It emphasized the need to deploy robust security measures...

A statement from Sheikh Mohammed bin Rashid regarding work in the private sector

It is His Majesty In the United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum, who holds the positions of Vice President, Prime Minister, and Ruler of Dubai, assessed the outcomes of the Emiratization plan implemented in the private sector....

Future Jobs in Emirates: The labor market is a criterion for choosing a field of study

Academic advisors have verified that the labor market has experienced significant transformations in recent years, profoundly impacting university majors. These changes have redirected students' focus towards emerging majors that were previously...

Dubai Police announces 150 vacancies

By announcing the availability of 150 job opportunities for national and reserve service recruits, the Dubai Police General Command is providing these individuals with the opportunity to become part of an innovative and advanced police work...

UAE jobs: Emirates hotels provide 4,000 new jobs

The best hotels in the Emirates provide employment opportunities for thousands of job seekers. job seekers in the uae hotels

Dubai: A company made 16 of its workers millionaires in their honor

In Dubai, a company has made sixteen of its employees millionaires in their honor.

Dubai Court: Worker compensation of 500 thousand UAE dirhams

The Dubai Civil Court has issued a ruling that mandates a restaurant and two of its supervisors to provide a sum of 500,000 dirhams to a worker who sustained a wrist-level amputation as a result of their right hand slipping into a meat-mincing...

What happens after applying for a work permit in Canada?

Prior to coming to Canada, it is necessary to submit an application for a work permit. Foreign workers who wish to apply for a visa while located outside of Canada will be required to submit their application to a visa office situated outside of...

UAE: the details of the 10-year golden commercial license for expatriates

The United Arab Emirates has announced a golden commercial license for expatriates that is valid for ten years.

UAE: Important statement to citizens and residents when purchasing from sales outlets

Abdullah Sultan Al Fan Al Shamsi, the Assistant Undersecretary of the Ministry of Economy for the Commercial Control and Governance Sector, emphasized the importance of consumers retaining purchase invoices. This is crucial as these invoices serve as...

Dubai: A fine of 100,000 dirhams will be imposed on the establishment owner who violates the labor law

The Dubai Court of First Instance issued a second ruling against the establishment owner for violating the Emiratisation policy in the "Nafes" program. The owner was fined 100,000 dirhams for engaging in fraudulent Emiratisation practices....

The UAE announces the details of reducing working hours in Ramadan for the public and private sectors

Workers in the private sector will have a two-hour break each day during the holy month of Ramadan, according to an announcement by the country's Ministry of Human Resources and Emiratisation.

UAE: Banks warn against closing credit cards in this case

Banks in the country will close credit cards with balances exceeding the allowed credit limit starting May 1st, as per new terms and conditions sent to customers, a copy of which was obtained by Emirates Today.

UAE: Announcing an increase in gasoline and diesel prices starting in March

The Fuel Prices Monitoring Committee has authorized a rise in gasoline and diesel prices for March 2024, with an increase ranging from 15 to 16 fils per liter for gasoline and 17 fils per liter for diesel compared to February 2024 pricing.

Bitcoin price reaches $60,000 and is approaching its highest level

The price of Bitcoin is close to reaching its highest price, as it is currently at $60,000

UAE: Announcing job opportunities with salaries from 5,000 to 20,000 dirhams

The portal "Kaddar", linked to the Human Resources Department in Ajman, provided job opportunities for citizens in various government and private sectors in the emirate. The Majid Al-Futtaim Group announced 15 job openings with wages...

Canada announces lucrative job opportunities that do not require a certificate

Canada announced that there are many good jobs that can be accessed without a university degree, and these are some of them:

Urgent UAE: Categories excluded from the provisions of the “New Pensions Law”

The General Pensions and Social Security Authority stated that Decree Law No. (57) of 2023 applies to citizens entering the workforce for the first time starting from October 31, 2023, with any employer in the federal government or local...

Urgent UAE: The employer will be fined from 50 thousand dirhams to 200 thousand dirhams in this case

The Ministry of Human Resources and Emiratisation has cautioned private sector businesses and employers not to hire persons without valid work permits from the Ministry, even for trial employment, whether in businesses or as support staff.

Abu Dhabi: Ruling that a female employee is entitled to compensation amounting to 120 thousand dirhams

The Abu Dhabi Family, Civil and Administrative Claims Court mandated a corporation to pay an employee 120,000 dirhams for breaching an employment contract where she was supposed to work for a salary of 37,000 dirhams. After the company requested...

NOW The Mashreq Bank offers the highest rates of interest and financial benefits