UAE Remittances Rise 28% to Dh188.8 Billion in 2025

UAE remittances recorded strong growth in 2025, with money sent abroad through exchange houses rising 27.8 per cent year-on-year to Dh188.8 billion, according to data from the Central Bank of the UAE’s Financial Stability Report 2025.

The increase reinforces the UAE’s position as one of the region’s major remittance markets, supported by its large expatriate population, strong economic activity and extensive network of exchange businesses and financial institutions.

The Central Bank’s data showed that outward transfers remained substantially higher than money flowing into the country. At the same time, inward remittances recorded an even faster annual increase, indicating stronger cross-border financial activity on both sides of the UAE’s international payments flows.

Personal transfers account for the largest share

Personal remittances represented the largest component of outward transfers through UAE exchange houses during 2025, reaching Dh115.7 billion.

Trade remittances followed with Dh63.3 billion, reflecting the significant role played by exchange businesses in facilitating payments connected to commercial activity. Other types of remittances accounted for Dh8.5 billion, while investment-related transfers stood at around Dh1 billion.

The figures demonstrate that personal transfers continue to dominate the UAE’s outward remittance market. For millions of residents, exchange houses remain an important channel for transferring money to family members and other recipients overseas.

The sharp rise in UAE remittances also points to sustained demand for cross-border payment services. Exchange businesses have continued to play a central role in providing remittance and currency-related services to residents and businesses across the country.

Inward remittances surge 53.6 per cent

Money entering the UAE through exchange businesses also increased significantly in 2025.

Inward remittances rose 53.6 per cent year-on-year to Dh36 billion, according to the Central Bank data. Although the value remained considerably below outward transfers, the rate of growth was notably higher.

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

The substantial increase in inward flows highlights the UAE’s growing importance as a destination for international business and financial transactions. It also reflects the country’s interconnected economy and its role as a hub linking businesses and individuals across regional and global markets.

The gap between outward and inward flows nevertheless remained wide. Outward transfers of Dh188.8 billion were more than five times the Dh36 billion recorded in inward transfers through exchange businesses.

Exchange businesses report stronger earnings

The growth in remittance activity was accompanied by improved financial performance among exchange businesses.

Net profits across the sector increased 8.2 per cent during 2025 to reach Dh625.6 million. The rise suggests that stronger transaction volumes and continued demand for financial services supported the performance of exchange companies.

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

The stronger capital base provides additional support for the resilience of exchange businesses as they handle substantial volumes of domestic and international transactions.

Exchange houses are an important part of the UAE’s financial infrastructure, particularly for residents who regularly send funds overseas. Their role extends beyond traditional cash transfers, with the sector increasingly adapting to changing customer expectations and developments in digital financial services.

Islamic banking assets reach Dh1.329 trillion

Alongside the growth in UAE remittances, the Central Bank’s report highlighted significant expansion in the country’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 latest figures mark a continued upward trend in Islamic banking assets over recent years. Assets stood at approximately Dh857 billion in 2022 before increasing to Dh956 billion in 2023 and Dh1.089 trillion in 2024. They then climbed to Dh1.329 trillion in 2025.

The sustained growth reflects the increasing importance of Sharia-compliant financial products and services within the UAE’s wider financial system.

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

UAE targets Dh4.96 trillion in Islamic finance assets by 2031

The UAE has set ambitious targets for the development of its Islamic finance industry over the coming years.

Under its Islamic Finance and Halal Industry Strategy, the country aims to strengthen its position as a global hub for Islamic finance. The strategy focuses on developing larger financial institutions, expanding Sharia-compliant financial services and supporting areas including sukuk, investment and sustainable finance.

The UAE is targeting total Islamic finance assets of Dh4.96 trillion by 2031.

Of that total, Islamic banking assets are expected to account for approximately Dh2.6 trillion. This would represent a substantial increase from the Dh1.329 trillion recorded in 2025.

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

Islamic finance is additionally expected to make a contribution of around Dh27 billion to the UAE’s gross domestic product by 2031.

These targets form part of broader efforts to strengthen the UAE’s position within the international Islamic finance industry and attract greater investment into the country.

Financial sector growth supports UAE’s global role

The simultaneous increase in UAE remittances and Islamic banking assets underlines the breadth of activity within the country’s financial sector.

Remittance flows are closely connected to the UAE’s position as an international employment and business centre. A large expatriate population generates sustained demand for personal transfers, while businesses use exchange houses and other financial institutions to facilitate trade and international payments.

At the same time, the rapid expansion of Islamic banking demonstrates the country’s efforts to diversify and deepen its financial markets.

The 2025 figures show that both conventional cross-border financial activity and Sharia-compliant banking are expanding. This provides the UAE with multiple avenues for strengthening its position as a regional and international financial hub.

The growth in outward transfers is particularly significant. At Dh188.8 billion, the value of money sent abroad through exchange houses represents a substantial flow of capital from the UAE to overseas markets and households.

Personal transfers alone accounted for Dh115.7 billion, demonstrating the scale of financial links between UAE residents and recipients in other countries.

Stronger remittance activity reflects continued demand

The rise in UAE remittances also highlights the continued importance of reliable, accessible and efficient money-transfer services.

For individuals, particularly those supporting families outside the UAE, remittance services provide an essential link between employment and household income across borders. For businesses, exchange houses support payments connected to trade and other commercial activities.

The increase in inward transfers adds another dimension to this activity. The 53.6 per cent rise to Dh36 billion indicates that international money flows into the UAE also gained momentum during the year.

While the overall value of inward transfers remained much smaller than outward flows, its faster annual growth demonstrates increasing movement of funds into the UAE through exchange businesses.

Outlook for the UAE financial sector

The latest figures point to continued momentum across several areas of the UAE’s financial system.

The strong increase in UAE remittances demonstrates the scale of the country’s international financial connections, while rising exchange-business profits and capital levels indicate a stronger position among businesses serving the remittance market.

Meanwhile, Islamic banking is becoming an increasingly important component of the UAE’s financial landscape. With assets already exceeding Dh1.3 trillion, the sector is moving toward the country’s much larger 2031 target.

The government’s strategy for Islamic finance, combined with the continued development of sukuk and Sharia-compliant investment products, is expected to support further growth in the sector.

Taken together, the latest Central Bank figures underline the UAE’s expanding role as a financial centre connecting individuals, businesses and investors across international markets. The sharp rise in outward remittances, stronger inward flows and rapid expansion of Islamic banking all point to a financial sector that continues to grow in scale and strategic importance.