Tech, promotions fuel surge in UAE-India remittances
The remittance corridor is set to thrive even further in the year ahead
In the past year, exchange houses across the country have reported an increase in transactions between the UAE and India and it looks as though the remittance sector is in for another bumper year.
“Wall Street Exchange experienced significant growth in remittances between the UAE and India, with over 50 per cent year-on-year growth,” says Malaz Mubaid, COO and Acting CEO, Wall Street Exchange Centre.
“Looking ahead to 2025, we anticipate continued growth, driven by our focus on digital innovations, customer-focused offerings, and the ever-strong ties between the two countries.”
Similar findings are echoed at Al Ansari Exchange.
Ali Al Najjar, Chief Operating Officer, Al Ansari Exchange, says, “The UAE-India remittance corridor has grown significantly in the previous years. The UAE, being India’s top source country, accounted for 18 per cent of overall inflows, totalling $21.6 billion in 2023, and remains a major contributor to global remittance growth. This growth has been driven by a combination of factors, including our promotions, technological advances and the large Indian expatriate community in the UAE.”
Indeed, for any business sector to witness growth, it normally takes a fusion of favourable influences and the remittance sector is no different.
“The UAE-India remittance sector is thriving owing to a confluence of factors. Primarily, the UAE’s robust economy, with its high GDP per capita and demand for workforce, particularly in sectors like construction and hospitality. This large diaspora forms the backbone of remittance flows,” says Al Najjar.
“In addition to that, technological advancements have revolutionised the sector. The rise of digital solutions has made sending money home faster, more convenient, and often more cost-effective, with the supportive government policies playing a crucial role.
“The UAE-India Comprehensive Economic Partnership Agreement (CEPA) enhances financial ties, while regulatory frameworks in both countries ensure secure and efficient cross-border transfers. Financial inclusion initiatives in India are making banking services more accessible, particularly in rural areas.”
Al Najjar says, “The UAE remittance industry has seen major transformations in recent years, fuelled by several technological innovations. One key development has been the introduction of digital wallets and mobile applications. Our mobile app, for instance, empowers users to send money seamlessly, at competitive rates with low transfer fees. Furthermore, we are also considering leveraging artificial intelligence (AI) and machine learning (ML) to enhance security and improve customer service.”
Of course, another of the recent transformations is the integration of India’s Unified Payments Interface (UPI) with the UAE, making payments simpler than ever between the two countries.
Mubaid from Wall Street Exchange Centre, says, “The integration of India’s UPI with the UAE has enhanced the remittance experience by enabling faster, easier, and more affordable money transfers. It also highlights how digital solutions improve efficiency and set new standards within the industry.”
With faster transfers thanks to digital transformations, many exchange houses are going the extra mile by enticing customers with promotions and unique offers, which has created an added driving force within the industry.
Mubaid says, “At Wall Street Exchange, we have implemented a range of promotions, including reduced transfer fees, cashback rewards and exclusive gifts, to attract and retain customers. These initiatives build trust and encourage repeat transactions.”
As exchange houses compete through benefits of competitive fees, loyalty programmes and easier transfers, ultimately, it all adds up to good news for customers.
“The competitive landscape within the remittance industry drives innovation and better pricing for customers. Companies like Al Ansari Exchange are constantly offering tailored services and competitive rates, benefiting Indian expatriates,” Al Najjar points out, adding, “Cultural ties between the two countries further contribute to higher remittance flows, particularly during festivals or family events. All of these factors together create a dynamic and growing remittance market.”
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