United Kingdom: Global Payments Guide
- Supported currencies receiving(AED, EUR, GBP)
- Supported currencies sending(AED, EUR)
- Delivery time: {1-5 working days (SWIFT)}
- Supported by : (SWIFT)
As-salaam ‘alykum! The UAE, with its inclusive, innovative, and inspiring economy, stands as a world-leading business hub. Discover how to send, receive, and exchange business payments in the Emirates.
If you’re expanding into the Middle East or starting a new venture in Dubai, you’ll need efficient, cost-effective methods to transfer money from the UK to the UAE, ensuring you retain as much profit as possible.
This guide will walk you through various options for sending money to the UAE for business transactions, including potential costs and other useful information. Let’s get you informed and ready.
What methods of payment are available in the United Arab Emirates?
To transfer money from the UK to the UAE, you have several funding options: corporate and personal credit cards, debit cards, bank transfers, direct debits, and e-wallet services like Apple Pay and Google Pay.
Keep in mind that using a credit card may incur additional fees, such as a cash advance fee, which should be considered when calculating the overall cost. So, what’s the best way to send money to the UAE? Let’s explore your options.
You can request your bank to transfer funds, a popular choice due to its ease and convenience. However, this method can be costly:
- Banks typically charge a fee for arranging and processing transfers.
- Some banks apply a percentage fee on the total amount, up to 3-4%.
- Banks may use their own foreign exchange (FX) rates, potentially costing you up to 5% more.
Although 8S Money is not a business bank, it’s important to review your business bank’s terms and conditions. If fees are high, consider exploring alternative options.
Wire transfer services are another option for transferring money to and from the UAE. As with other services, there are pros and cons to this type of transfer. For example:
You have a choice of how the money is received. Many services offer bank transfers, eWallet delivery, or cash pickup from a physical location.
If you want a faster transfer, you’ll probably pay significantly more.
These services often add a currency exchange rate markup, meaning the sender must pay more or the recipient receives less. Either way, the provider pockets a healthy profit.
Wire transfers can be less secure and more difficult to trace. Ensure that an independent body regulates your provider for greater peace of mind. The DFSA in Dubai regulates 3S Money.
Money transfer services
The UAE employs various frameworks and systems for domestic and international money transfers:
- SWIFT: This global payment system facilitates transfers to and from 200 countries.
- GCC-RTGS: Managed by the UAE’s Central Bank, this system allows instant money transfers between GCC states.
- BUNA: The Arab Regional Payments System supports cross-border payments within the Arab region, promoting trade and investment through a multi-currency platform.
- Project Aber: Although not yet operational, this initiative aims to develop a common digital currency for more efficient cross-border payments between the UAE and Saudi Arabia.
- Direct SWIFT Payments: An agreement between the UAE and Israel, established in 2020, allows for direct SWIFT payments between the two countries.
Online payment platforms
Electronic Money Institutions (EMIs) are not banks, however they offer many of the same financial products and services as traditional banks. For example, they don’t have physical branches. EMIs like 8S Money are quickly becoming the service of choice for money transfers. This is especially true for businesses that operate internationally. Here are a few reasons why:
Savings: EMIs offer lower fees and more competitive FX rates than traditional brick-and-mortar banks.
Simplicity: All your business transactions are accessible in one easy-to-use platform.
Scale: Your business can grow quicker with greater access to multiple countries and currencies.
International businesses are turning to EMIs for alternative banking solutions because they enable payments in different countries without holding local bank accounts.
Cash Pick-Up: Some transfer providers offer cash pick-up options at various locations. This service can be quick, with cash often available within minutes. However, it can come with significant currency conversion markups, making it less ideal for frequent payments.
Digital Wallets: Digital or mobile wallets like PayPal provide another option for cross-border payments. PayPal is widely used but can be expensive, with fees of 5.4% + $0.30 per transaction and additional currency conversion charges. Other digital wallets, such as Payconiq, might be more suitable depending on your specific needs and location.
Factors to consider when sending money to the UAE
When transferring money to the UAE, expect various costs:
- Bank Fees: High fees for international transfers.
- Percentage Fees: Some banks charge a percentage of the transfer amount.
- Exchange Rate Markups: Less favorable rates can increase costs.
- Additional Charges: Extra fees may apply for expedited services or credit card use.
Outgoing transfer fee:
You’ll most likely be charged a flat fee for sending an international transfer. For UAE banks, this can be up to AED 100 (approx. $27) plus a hidden percentage based on your transaction amount. At 8S Money, the United Arab Emirates is in Area 2, outgoing payments incur charges ranging from 0.40% for Starter accounts to 0.10% for Enterprise Plus accounts.
Incoming transfer fee:
Receiving international payments can incur a flat fee ranging from zero to 25 AED ($6-7 USD), plus a percentage of the transaction amount. At 8S Money, our incoming payment fees are transparent, ranging from 0.15% for Starter accounts to 0.00% for Enterprise Plus accounts.
Initiation fee:
Some banks might charge you a fee if you request the transfer over the phone or in person rather than online. Expect this to be around £20. 8S Money doesn’t charge initiation fees.
Speed of transfer
The duration of transfers to and from the UAE varies. Typically, many transfers take a few days. The exact time depends on the type of transfer and the systems used by your provider.
- Traditional Banks: Slowest, often due to correspondent banks.
- SWIFT Network: Up to four working days.
- Wire Transfers: Varies by provider; cash pick-up or mobile wallets may be instant, bank transfers usually next day.
Note that payments sent over weekends or public holidays may face additional delays. The UAE has a four-and-a-half-day working week with standard hours from 7:30 am to 3:30 pm on weekdays and 7:30 am to 12 pm on Fridays.
Religious and public holidays
The banking services in the UAE, Dubai, and other MENA regions can be impacted by religious holidays – particularly Eid al-Fitr and Eid al-Adha – widely celebrated by Muslims in the region.
To allow employees to engage in religious activities and spend time with their families, banks may adjust their operating hours or close altogether. While ATMs and online banking services may still be available, customers should expect processing delays and limited access to certain services during these holidays.
Plan payments before any religious observance period to avoid delays or complications if possible.
Security and safety
With international payments comes many risks, so it’s important to make your payments safely and securely. Here are safety factors to consider when making international payments to and from the UAE: Â
- Beware of transfer scams.
- Don’t send cash in the mail.
- Always confirm you have the correct details (i.e address, recipient name, account number etc.)
- Using a wire transfer or money transfer app is usually safer.
Benefits of opening a 8S Money account in UAE
The UAE’s strategic location facilitates access to markets in Europe, Africa, the Middle East, and Asia, supported by a robust financial infrastructure.
Abu Dhabi, the UAE’s capital, is becoming a hub for telecoms and IT innovation, enhancing business capabilities in reaching consumers and managing payments efficiently. Opening a 8S Money account in the UAE offers numerous benefits for growing businesses, including:
Overview and next steps
We’ve covered a lot in this payment guide, so here are some tips and main takeaways to consider:
- You can transfer unlimited amounts to and from the UAE with access to 65+ currencies in 190+ countries.
- Plan transfers to minimize delays and ensure timely arrival.
- Avoid making many small transfers to prevent accumulating individual fees.
- Ensure your provider is independently regulated; 8S Money is licensed by the DFSA and safeguards 100% of your funds.
Need more information? Reach out to us, and we'll be happy to assist you.
Our team is here to guide you through the process of opening your business account, all without needing to step into a bank. We speak over 12 languages, so let us know if you’d like to schedule a call in your native language.
