With millions of expats living and working in the Emirates, people need to send money from UAE to their homes. Families in countries like Pakistan, India, Egypt, and the Philippines depend on these remittances for daily expenses, education, and healthcare.
Many people use traditional bank transfers and exchange houses, but some still turn to hawala—an informal and unregulated system of money transfer that operates on trust rather than official banking channels.
While it’s been around for centuries, hawala comes with risks, including lack of consumer protection, potential fraud, and regulatory issues.
The UAE government is strengthening its financial rules, ensuring safer, legal, and more transparent ways to send money abroad. Licensed banks, digital wallets, and international money transfer services now offer fast, affordable, and secure alternatives to hawala.
So, what are your best options?
Let’s explore the safest and most convenient ways to send money from the UAE—without any legal risks.
Send Money from UAE via Hawala vs. Regulated Transfers?
Hawala is an ancient, trust-based system where money is moved without actually being transferred physically.
Instead of using banks, a ‘hawaladar’ (middleman) takes your cash and ensures an equivalent amount is paid to your recipient through their network in another country.
Sounds convenient? Maybe. But it also comes with risks—no receipts, no guarantees, and often, no legal protection.
On the other hand, UAE’s licensed money transfer services offer:
- Transparency because every transaction is documented.
- Security as your money is safe and trackable.
- Speed because it offers instant or same-day transfers are common.
- Compliance with fully authorized by the UAE Central Bank.
Why Hawala is Losing Its Grip in the UAE
A few years ago, hawala was an attractive option for many expats because it often provided better exchange rates than banks and formal money transfer services.
But times have changed, and several key factors are making legal alternatives more appealing than ever.
More Competitive Exchange Rates
In the past, hawala dealers (hawaladars) offered higher exchange rates compared to banks, making them a popular choice. However, currency fluctuations and market changes have significantly reduced the difference.
For example, in 2023, the Pakistani Rupee (PKR) depreciated nearly 20%, leading to a wide gap between official rates and hawala rates.
Today, however, that gap has narrowed, making licensed banks, exchange houses, and fintech services just as competitive—without the risks associated with informal networks.
Stricter UAE Regulations & Crackdowns
The UAE Central Bank has taken a firm stance on unregulated financial transactions. In recent years, the government has introduced tighter anti-money laundering (AML) laws, requiring hawaladars to register, maintain records, and follow strict compliance measures.
This has led to:
- Reduced risk of fraud – No more “disappearing” hawaladars.
- More financial transparency – Ensuring money reaches the right hands.
- Stronger legal consequences – Illegal transactions can now lead to hefty fines or imprisonment.
As a result, the risks associated with hawala now outweigh its benefits, pushing more people toward legitimate, secure money transfer options.
Rise of Digital Payment Solutions
Technology has revolutionized remittances, making it easier, faster, and safer to send money abroad. Expats in the UAE now have access to convenient mobile wallets apps, international fintech services and online banking transfers.
These options provide speed, security, and convenience, eliminating the need for risky informal networks.
Also Read: Where to Trade in Old Smartphone in UAE: Best Deals in 2025
Best Legal Ways to Send Money from UAE
To send money from UAE, it is better to go for legal and authorized methods instead of Hawala. Here are your best options:
1. Bank Transfers – Secure & Reliable
Most UAE banks offer international money transfers through SWIFT or local banking networks. Fees vary, but major banks like Emirates NBD, ADCB, and FAB provide competitive exchange rates and fast processing times.
- Timeframe: 1–3 business days.
- Best for: Large transactions or regular remittances.
2. Exchange Houses – More Bang for Your Buck
Companies like Al Ansari, Al Fardan, and Lulu Exchange specialize in international remittances. They often offer better rates than banks and faster processing times.
- Timeframe: Same-day or next-day delivery.
- Best for: Mid-sized transfers with lower fees.
3. Mobile Wallets – Fast & Convenient
Fintech is changing the game! Platforms like Payit, eWallet, and international services like Wise and Remitly let you send money from your phone. Some offer real-time exchange rates, meaning more money reaches your loved ones.
- Timeframe: Instant to 24 hours.
- Best for: Small to medium transfers, mobile-savvy users.
4. Cash Pickups – Instant Access
Some services allow you to send money that can be collected in cash at local branches in the recipient’s country. Companies like Western Union and MoneyGram specialize in this.
- Timeframe: Minutes to a few hours.
- Best for: Emergencies or recipients without bank accounts.
5. Cryptocurrency Transfers – The New-Age Alternative
Believe it or not, Bitcoin and stablecoins are becoming an option for international transfers. While it requires a digital wallet, crypto can bypass traditional banking fees. However, always check local regulations before using this method.
- Timeframe: Instant to a few hours.
- Best for: Tech-savvy users looking for alternatives.
What to Consider Before Sending Money
Before making a transfer, ask yourself:
- What’s the exchange rate? Small differences add up.
- What are the fees? Some services hide charges in exchange rates.
- How fast is the transfer? Emergency? Go for instant options.
- The service regulated? Always choose licensed providers.
Final Thoughts:
To send money from UAE, Hawala might have been a convenient option in the past, but today’s legal alternatives are just as competitive, faster, and much safer.
Whether you’re supporting family back home or handling business payments, using licensed remittance services ensures peace of mind and compliance with UAE laws.
So, next time you need to send money, skip the risk—go digital, go secure, and get the best deals hassle-free!
