Dubai's biggest lender Emirates NBD to start charging for remittances to certain countries

Move may prompt other banks to follow and could benefit exchange houses

Remittances by expatriates in the UAE provide their home countries with a major source of foreign currency. Victor Besa / The National

Emirates NBD, Dubai's largest bank by assets, will start charging fees for international transfers made to certain countries through its app or online banking platform from September 1.

The bank will charge a fee of Dh26.25 for remittances, including those made through DirectRemit, it said in an email to customers. DirectRemit is a platform that allows customers to transfer money via online or mobile banking in 60 seconds.

However, transfers to India, Pakistan, Egypt, Sri Lanka, the Philippines, and the UK will continue to be offered free of charge to all Emirates NBD customers, a bank representative clarified in a statement.

"Additionally, Emirates NBD is expanding its DirectRemit offerings to over 30 new countries ... [and] customers will no longer be charged any correspondent bank fees [in addition to the Dh26.25 fee]," the representative said.

The lender will also charge a fee of up to Dh26.25 for recalling and cancelling local and international transfers, it said.

The move by the lender may prompt other banks to introduce fees on remittances and may be a boon for exchange houses that offer lower charges, analysts said.

“Introducing a Dh26.25 fee from September 2025 marks a shift, and as the largest local bank sets the tone, it’s possible others may follow,” Dhruv Tanna, associate vice president at DIFC-based investment and wealth management firm Phillip Capital, told The National.

Some lenders such as RAKBank already impose a fee for international transfers, charging Dh15.75 for the Philippines and Dh26.25 for India, according to its website.

New customers signing up for salary transfer accounts with RAKBank can enjoy “fee-free” remittances across 175 countries, a representative said.

Mashreq bank has zero fees for Pakistan and India, but charges a flat fee of Dh26.25 for the Philippines, according to its website.

Others such as FAB have zero transfer fees for instant transfers to countries including India, Pakistan, Philippines, Sri Lanka, the UK and the EU, according to its website.

International transfers are rarely entirely free as banks recover their costs indirectly, analysts said.

"While some digital channels advertise zero fees, most banks have always made money either through transfer charges or by applying a margin to the exchange rate, or both," said Ben Bolger, founder of Squirrel Education, a company that teaches school children financial independence.

The UAE is one of the largest outbound remittance countries in the world with the vast majority of personal remittances sent through exchange houses. Victor Besa / The National

Opportunity for exchange houses

Exchange houses with more competitive fees are likely to benefit as banks impose charges on international transfers.

“For exchange houses, this presents a renewed opportunity to attract price-sensitive customers with lower transfer fees and competitive rates," Mr Tanna said.

"Still, many mid-to high-income customers may continue to choose banks for the convenience, even with a nominal charge."

Mr Bolger said that as banks adjust their terms, consumers could reconsider their options.

"Exchange houses, which tend to offer more competitive rates and transparent pricing, may become increasingly attractive, despite the convenience of transferring money directly through your bank," Mr Bolger said.

Emirates NBD's move to charge fees for remittances may prompt other lenders to follow suit, but it also "opens the door wider" for exchange houses and digital apps offering zero fees and better value, Jay Adrian Tolentino, a UAE-based financial coach, said.

This will particularly benefit expats sending money to their home countries on a regular basis, he added.

Based on World Bank data, remittances to low- and middle-income countries are expected grow by 2.3 per cent in 2024 and 2.8 per cent in 2025, reaching $690 billion in 2025.

Remittances by expatriates in the UAE and wider region to their home countries are a major source of foreign currency inflows for those economies.