UAE remittances rise 28% to Dh188.8 billion as money transfers abroad surge

UAE remittances sent abroad through exchange businesses increased 27.8 per cent year-on-year to Dh188.8 billion in 2025, according to data published in the Central Bank of the UAE’s Financial Stability Report 2025.

The figures underline the scale of the UAE’s role in the international money-transfer market, particularly as a major destination for expatriate workers and a hub for cross-border business activity.

Outward remittances remained substantially higher than money flowing into the UAE through exchange houses during the year. The increase reflects continued demand for international transfers from individuals, businesses and investors operating in the country.

Personal transfers account for the largest share

Personal remittances represented the biggest component of outward transfers in 2025, reaching Dh115.7 billion.

Trade remittances followed with Dh63.3 billion, while other categories accounted for Dh8.5 billion. Investment-related transfers stood at approximately Dh1 billion.

The figures show that personal transfers continue to form the backbone of the UAE’s outward remittance market. A large expatriate population sends money regularly to families and beneficiaries in countries around the world, making the UAE one of the region’s most important sources of international remittance flows.

The overall increase in outward transfers also points to stronger activity through the country’s exchange-house sector, which plays a significant role in facilitating cross-border payments.

Inward remittances jump 53.6 per cent

Money transferred into the UAE through exchange businesses also recorded significant growth in 2025.

Inward remittances increased 53.6 per cent year-on-year to Dh36 billion, according to the Central Bank data.

Trade-related transfers represented the largest portion of inward flows at Dh22.8 billion. Personal remittances accounted for Dh8.1 billion.

The sharp increase in inward transfers indicates stronger cross-border financial activity involving businesses and individuals in the UAE. Although the value of inward remittances remained considerably below outward flows, the annual growth rate was substantially higher.

The difference between outward and inward transfers reinforces the UAE’s position as a net source of remittance flows, particularly because of its large expatriate workforce and its role as a regional commercial and financial centre.

Exchange houses report higher profits

The increase in transfer activity was accompanied by improved financial performance among exchange businesses.

Exchange houses recorded net profits of Dh625.6 million in 2025, representing an 8.2 per cent increase compared with the previous year.

The sector’s overall capital position also strengthened during the year, rising 4.4 per cent to approximately Dh4 billion.

Higher transaction volumes, combined with continued demand for international money transfers, supported the performance of the exchange-house sector.

Exchange businesses remain an important part of the UAE’s financial ecosystem, providing remittance and payment services to individuals and companies and connecting the country with international markets.

Islamic banking assets reach Dh1.329 trillion

The Central Bank’s report also highlighted significant expansion in the UAE’s Islamic banking sector.

Islamic banking assets increased 22 per cent year-on-year to Dh1.329 trillion in 2025. The sector’s share of the UAE banking market reached 24.7 per cent.

The growth continues a multi-year expansion in Islamic banking assets.

Assets stood at approximately Dh857 billion in 2022 before increasing to Dh956 billion in 2023 and Dh1.089 trillion in 2024. The figure then rose to Dh1.329 trillion in 2025.

The sustained increase reflects growing demand for Sharia-compliant financial products and the UAE’s broader efforts to establish itself as a global centre for Islamic finance.

UAE targets Dh4.96 trillion in Islamic finance assets

The expansion of Islamic banking comes as the UAE implements its Islamic Finance and Halal Industry Strategy, which was approved by the Cabinet in May 2025.

The strategy is designed to strengthen the UAE’s position as a global Islamic finance hub. It focuses on developing larger Islamic financial institutions, expanding Sharia-compliant financial services and supporting areas including sukuk, investment and sustainable finance.

Under the strategy, the UAE has set ambitious targets for the sector by 2031.

The country is targeting total Islamic finance assets of Dh4.96 trillion by 2031. Islamic banking assets are expected to account for approximately Dh2.6 trillion of that total.

The strategy also aims to increase the value of sukuk issuances listed in the UAE to more than Dh660 billion.

Islamic finance is additionally expected to contribute approximately Dh27 billion to the UAE’s gross domestic product by 2031.

Financial sector continues to expand

The latest figures provide a broader picture of the UAE’s expanding financial services industry.

The rapid growth in UAE remittances demonstrates the importance of cross-border financial services to the economy, while the expansion of Islamic banking highlights the country’s ambitions to strengthen its position in global financial markets.

The increase in outward transfers to Dh188.8 billion came alongside a particularly strong rise in inward transfers, which reached Dh36 billion.

At the same time, exchange houses improved their profitability and strengthened their capital base, suggesting that the sector remained resilient despite changes in global financial conditions.

The combination of strong remittance activity, expanding Islamic banking assets and increasing financial-sector capacity reinforces the UAE’s position as a major financial hub connecting the Middle East, Asia, Africa and other international markets.

What the remittance figures mean for the UAE

The scale of outward transfers reflects the economic links between the UAE and the countries where expatriate workers and businesses maintain financial commitments.

Personal remittances of Dh115.7 billion made up the majority of outward transfers, demonstrating the continued importance of individual money transfers in the UAE economy.

Trade-related transfers, meanwhile, accounted for Dh63.3 billion, highlighting the significant role of international commercial activity.

The growth of inward transfers adds another dimension to the UAE’s cross-border financial activity. Trade-related inward transfers of Dh22.8 billion were more than twice the value of personal inward remittances at Dh8.1 billion.

Together, the figures show that the country’s exchange-house network is handling substantial volumes of both personal and commercial international payments.

Outlook for remittance and Islamic finance sectors

The UAE’s financial sector is expected to remain closely linked to international economic activity as the country continues to attract businesses, investors and expatriate professionals.

For the remittance industry, sustained population growth, international trade and the UAE’s role as a regional business hub are likely to remain important drivers of transfer activity.

Meanwhile, the government’s Islamic Finance and Halal Industry Strategy provides a long-term framework for expanding Sharia-compliant finance.

The targets set for 2031 indicate that Islamic banking, sukuk and other Islamic financial products are expected to play a growing role in the UAE’s financial system.

The Dh1.329 trillion in Islamic banking assets recorded in 2025 represents a substantial increase from the Dh857 billion reported in 2022. If the sector maintains its growth trajectory, it could become an increasingly important component of the country’s broader ambition to establish itself as a leading global Islamic finance centre.

Overall, the latest Central Bank data shows that the UAE’s financial ecosystem continued to expand in 2025. Strong UAE remittances, rising inward transfers, higher exchange-house profits and rapid growth in Islamic banking assets all point to continued activity across key segments of the country’s financial services industry.