Repatriating your funds

According to the Gulf Research Center, foreign workers number about 13 million in the GCC and account for 70% of the workforce. The World Bank has calculated that remittances add up to an average of Dh1.1 billion each year via formal channels. With the large number of expatriates in the UAE, there are a large number of money transfer options to choose from.

Money exchanges line the streets of Satwa, Karama and Al Qusais and are in practically every shopping mall. Because of the high volume of money being sent home, there is a wide number of choice and as a result, rates are competitive.

Al Ansari Exchange has a network of 50 branches throughout the country, Al Fardan Exchange has more than doubled its number of retail shops in the last two years to 17 branches and Al Ghurair Exchange has branches all over Abu Dhabi and Dubai. A number of other smaller exchanges can be seen dotted throughout the UAE.

Although rates vary from place to place, transactions typically take three to four days to complete and are one of the cheaper options for transferring funds.

The UAE Exchange, for example, charges only Dh15 if you transfer any amount to a bank in the Philippines and India, and Dh45 to Dh50 if you transfer cash to a bank in Europe and the UK. At Al Ansari Exchange, Filipino and Indian expatriates sending any amount home pay the same charge quoted by the UAE Exchange. A similar transaction to Europe or the UK costs Dh10 to Dh15 more. Be aware of hidden costs; cash transferred to the Philippines via Al Ansari or UAE Exchange incurs a 'back-end' fee of 100 pesos (Dh10) upon collection.

For quicker almost instant results, wire your funds. Once wired, the recipient can pick up the cash within minutes at their end of the world. Western Union, for instance, wires money to a network of 270,000 agents in more than 200 countries and territories.

MoneyGram has approximately 96,000 global money transfer agent locations in 170 countries and territories, while other companies offering the same service include Speed Remit, EZ-Remit and Instant Cash. These wire services are available at local money exchanges and charge around Dh20 to Dh40 per transfer. Western Union charges Dh35 if you send Dh1,000 to the Philippines and Dh100 to continental Europe and the UK. Cash sent to India is at a fixed Dh15. Charges increase according to the amount. The maximum amount you are able to transfer is up to Dh29,000. On top of that, a minimum of 0.15% government tax will be charged on the principal amount. While the instant wire transfer is two to three times more expensive than sending money to a foreign bank account, it is a practical option in the event of an emergency.

There are various online platforms that allow people to send money home straight from their account to the recipients account. One website is www.sendmoneyhome.org which covers all aspects of money transfers. A number of smaller websites such as remit2india and onlinefx also help facilitate this.

Most banks in the UAE have remittance subsidiaries and international acceptance infrastructures, which means they are able to transfer money between international accounts. Banks such as CitiBank, Standard Chartered and Royal Bank of Scotland are big players in the remittance business in the Gulf region. Remittance charges vary depending on the bank so it is best to call up your bank and find out. HSBC charges Dh80, while Emirate NBD charge Dh75 irrespective of the amount you wish to transfer.

Using a broker gives you access to the most competitive rates available (on occasions as much as 4-5% better than a bank rate). First Rate based in Dubai offers a number of services such as the ability to organise both ad hoc and regular transfers, a fixed rate of exchange for up to 24 months and zero commission charges. Other foreign exchange brokers include Currency Solutions that has offices in Europe, Australia, South Africa and Dubai, Currency Index which is part of propertyindex.com, Global Currency Solutions and Halo Financial Ltd.

Need to pay off a mortgage at home? Here are some options for sending funds back to your homeland.