Indian expats in UAE send more money home as rupee weakens against UAE dirham

Dubai: UAE-based Indian expatriates are ramping up money transfers to India as the Indian rupee (INR) weakens against the UAE dirham (AED).

The exchange rate has dipped to around INR 24.03 per Dh1, down roughly 0.5% from earlier levels, prompting many residents to act quickly to maximise value for their families back home. (Check the latest forex rates here.)

“The recent shift in the Indian rupee presents a valuable opportunity for the Indian community in the UAE to send more support to their families,” said Ali Al Najjar, Chief Operating Officer at Al Ansari Exchange. “We have seen a noticeable increase in remittance volumes as residents look to take advantage of favorable exchange rates ahead of the Onam festival.”

Global geopolitical factors have contributed to the rupee’s decline, including the U.S.’s 50% tariffs on Indian exports, cautious policies from the Reserve Bank of India, rising oil prices, and the relative stability of the US Dollar, to which the UAE dirham is pegged. For Indian expatriates, these movements are more than numbers—they directly influence how far their remittances can stretch.

According to Al Najjar, remittance activity from UAE-based Indians has surged by 15% in the recent period. “Residents are strategically timing their transfers to maximise value,” he said. “Many are planning their remittances around currency trends, ensuring their families benefit the most during culturally significant occasions such as Onam.”

Financial service providers in the UAE have stepped up operations to meet the growing demand. “We have enhanced our liquidity at high-traffic branches, extended working hours, and introduced promotional offers on transfer fees to make sending money home easier and more efficient,” Al Najjar added.

For UAE Indian residents, even small movements in exchange rates can have a noticeable impact. “When sending money home, every fraction of a rupee counts,” said Rajesh Kumar, a Dubai-based IT professional. “A dip in the rupee means my family receives more for the same amount of Dirhams. Many of us monitor rates daily to decide the best time to transfer funds.”

Remittances remain vital for Indian households, particularly during festivals or periods of high expenditure. “Onam is an important time for us to support our families,” said Priya Menon, a resident of Abu Dhabi. “The slightly weaker rupee gives us the chance to stretch our contributions further, ensuring we can cover festive expenses and other needs.”

Looking ahead, industry experts anticipate that remittance activity could stay elevated through September. “With the rupee showing volatility and the festive season approaching, we expect continued demand from expatriates who want to maximise the value of their transfers,” Al Najjar said.

For Indian residents in the UAE, timing transfers carefully and choosing trusted remittance providers can make a meaningful difference. By monitoring currency trends and leveraging reliable financial services, expatriates can ensure that their support reaches families efficiently while maximising the impact of every Dirham sent.