DUBAI - In a significant development for overseas workers, the authorities in the United Arab Emirates have announced increasing the fee for remittances sent by expatriates by 15 percent.
The development was confirmed by the Foreign Exchange and Remittance Group (FERG), representing the exchange houses in the UAE.
As per the announcement, the authorities have confirmed increasing the fee by 15 percent, which equates to Dh2.5.
A key aspect in this regard is the fact that the fee hike will take place for remittance services provided through physical branches of the exchange houses.
Interestingly, remittances offered via mobile apps will most likely remain unchanged or even reduced to maintain digital competitiveness.
“This move ensures that exchange houses can sustain the delivery of high-quality services while addressing the changing regulatory requirements and associated operational costs, all of which were maintained without fee increases for the past five years,” Mohammad A. Al Ansari, chairman of Ferg was quoted as saying by Khaleej Times.
It is to be mentioned that UAE hosts about 1.7 million Pakistanis, the second largest Pakistani expat community in the world.
The data by the State Bank of Pakistan confirms that the volume of remittances from the UAE to Pakistan in fiscal year 2022 was $2555.22 million, implying that a sizeable Pakistani workforce is employed in the country in diverse fields from banks to real estate.
The UAE stands as one of the globe's leading remittance hubs, channeling a significant portion of remittances to multiple countries. Expatriates make up nearly 85% of the total population, making it one of the countries with the highest concentration of foreign labor.
Pakistani rupee remains stable against US dollar and other currencies in the open market on February 22, 2024 (Thursday)
In the open market, the US dollar was being quoted at 279.6 for buying and 282.4 for selling.
Euro comes down to 300.2 for buying and 303.2 for selling while British Pound rate stands at 350.6 for buying, and 354.1 for selling.
UAE Dirham AED hovers at 76.2 whereas the Saudi Riyal saw slight increase, with new rates at 74.45.
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