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 increases were most notable in key markets such as India and Pakistan, which continued to dominate the overall remittance flows.

Al Fardan Exchange, a company licensed by the UAE Central Bank, observed slightly softer activity in March compared to last year. CEO Hasan Fardan Al Fardan informed Khaleej Times that this was primarily due to timing changes rather than a decrease in demand. “Many customers capitalized on favourable exchange rates earlier in the quarter, particularly in February, which brought forward some of the typical March activity,” he explained.

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Earlier in January, the Indian rupee fell to a record low of 91.1825 against the US dollar, to which the UAE dirham is pegged. A lower rate is beneficial for expatriates sending money home. Conversely, remittance volumes from Filipino expatriates worldwide dropped to a nine-month low in February, according to the Philippine central bank.

In the UAE, the exchange company CEO noted a more measured approach from some customers, particularly towards the end of the quarter. However, this did not affect overall volumes, he stated.

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

More Volatility, Higher Remittance Rates

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

Merhebi echoed Al Fardan’s insights, mentioning that during times of currency volatility, expatriates often take the opportunity to maintain or increase their transfer activities. “When home-country currencies weaken, the same amount in dirhams provides greater value for families,” she explained. “The UAE continues to be a vital hub for remittances globally, bolstered by a strong regulatory framework, advanced financial infrastructure, and economic stability,” she added.

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