Banking
UAE — Banking: International Transfers
UAE banks (Emirates NBD, FAB, ADCB, Mashreq, and others) use the SWIFT network for international wire transfers. Fee structures depend on the chosen fee code: selecting 'OUR' means the sender covers all fees so the recipient gets the full amount, while other codes split fees between sender and recipient; correspondent/receiving banks may add further charges regardless of the code chosen. The main hidden cost is the exchange-rate margin banks apply on currency conversion, typically 1-3% above the mid-market rate, though it can run higher on some corridors. Globally, the average cost of sending a $200 remittance via traditional banks reached nearly 14% in 2024 (up from 11.5% the prior year), making digital/neobank alternatives (Wio, Liv, Wise) increasingly popular for lower-cost transfers. Some banks (e.g. HSBC) waive fees for mobile-initiated transfers to non-HSBC banks.
Key facts
- UAE banks use SWIFT for international transfers; fee code ('OUR' vs shared) determines who absorbs bank charges.
- Exchange-rate margin is typically 1-3% above mid-market rate — the largest hidden cost component.
- Global average cost of a $200 bank remittance reached ~14% in 2024, up from 11.5% the prior year.
- Some banks (e.g. HSBC) waive international transfer fees for mobile-initiated transfers to non-HSBC banks.
Costs
- Typical FX margin above mid-market rate: 1-3%
Common mistakes
- Comparing only the stated transfer fee and ignoring the larger hidden cost of the FX margin.
- Not selecting the 'OUR' fee code when the recipient needs to receive the exact full amount.