UAE expats remit more in Q1 due to favourable exchange rates

Remittances from the UAE have remained largely steady in the first quarter of 2026, with a slight increase to some countries due to favourable exchange rates, according to leading UAE currency exchange companies.

These were most notable across vital markets like India and Pakistan, which continued to dominate overall flows.

Al Fardan Exchange, an exchange company licensed by the UAE Central Bank, saw slightly softer activity in March of this year compared with last year, Hasan Fardan Al Fardan, the CEO, told Khaleej Times.

This, he explained, was largely due to a shift in timing rather than a change in demand. “Many customers took advantage of favourable exchange rates earlier in the quarter, particularly in February, bringing forward part of the typical March activity,” he said.

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Earlier in January, the Indian rupee dipped to a record low of 91.1825 against the US dollar, of which the UAE dirham is pegged to. The lower the rate, the more favourable it is for expats to send money to their home countries. By contrast, remittance volumes from Filipino expats worldwide fell to a nine-month low in February, as per the Philippine central bank.

In the UAE, the exchange company CEO said they observed a slightly more measure approach from some customers, especially towards the ends of the quarter. However, this had no impact on overall volumes, he said.

The combination of increasing customer awareness and a growing adoption of digital payments is driving more expatriates to remit smaller amounts at more frequent stages, Al Fardan added.

More volatility, higher remittance rates

“March typically sees steady remittance activity, and this year has been no exception,” Sirine Merhebi, group senior manager of corporate communications and investor relations at Al Ansari Financial Services, said, adding that the remittance volumes has remained consistent with usual patterns.

Merhebi echoed Al Fardan’s comments, adding that during periods of currency volatility, expats will often use this time to either maintain or increase their transfer activity. “When home-country currencies weaken, the same amount in dirhams delivers greater value for families,” she said.
“The UAE continues to play a vital role as one of the world's leading remittance hubs, supported by a strong regulatory environment, advanced financial infrastructure, and economic stability,” she added.