Main Category: Blog

If you are a UAE resident, especially an expatriate, you know the importance of remittance especially during the festive season. From buying gifts to planning travel and celebrations, your loved ones back home depend on the money you send to meet these expenses.

It is your hard-earned money that makes all of this possible. The money you send home helps your loved ones celebrate, plan, and smile a little more during the festive season. Naturally, this is also the time when more people send money, and remittance costs tend to rise.

This article will help you make smarter decisions to ensure your loved ones receive the most from the money you send, without compromising on speed or security.

What Is Remittance and Why It Matters During the Festive Season

Remittance as you know refers to the process of transferring money from one person to another most often by those living or working abroad to support their families or loved ones back home.

For millions of UAE residents, international remittances play a vital role in covering everyday expenses such as education, medical needs, household costs, and special celebrations.

So, why does remittance matter most during the festive season?

Festive seasons bring with them add-ons such as festival preparations, buying gifts, planning travel, and creating memorable moments. To meet these needs, families back home rely more on the money you send. As a result, remittance volumes naturally increase during festive periods.

When more people send money at the same time, transfer fees and exchange-rate costs often rise as well. So, it’s important that you save on these remittance costs especially during the festive season.

Check Live Exchange Rates

Smart Ways to Save on Remittance Fees During Festive Season

1. Compare Providers, Don’t Default to Your Bank

Traditionally, banks were the first choice for international money transfers. But banks often charge higher fees and apply wider exchange-rate markups, especially around peak seasons.

What you can do instead are:

• Choose exchange houses or remittance apps.
• Compare the exchange rates & processing times across different platforms.

2. Use Digital Remittance Apps

Digital remittance apps have completely transformed how UAE residents send money internationally.

They often offer:

• Competitive exchange rates
• Lower or discounted transfer fees
• Faster processing times
• Clear, transparent pricing

Not just that! Most of these providers run festive-season offers, thus making digital channels one of the most cost-effective ways to send money home. With apps like LuLu Money, you can send money quickly at competitive rates and clear fee visibility.

3. Plan Ahead and Time Your Transfers Wisely

If you want to save more, you should:

• Avoid last-minute transfers
• Regularly monitor exchange rate trends
• Transfer when the rates are the most favourable

Planning ahead helps you avoid poor rates and unnecessary fees.

4.Compare the Actual Cost, Not Just the Fee

A low transfer fee doesn’t always mean a cheaper transfer. Some services compensate by offering less favourable exchange rates or adding hidden charges.

So, before sending money:

• Compare the rate with the market rate
• Confirm the final amount your recipient will receive

Transparency is key to real savings.

Check out the best time to send money from the UAE to India!

5. Watch Out for Festive Offers and Rewards

Festive seasons are the peak time for promotions.

Most remittance providers offer:

• Reduced or zero transfer fees
• Better exchange rates
• Cashback or reward points

Always keep an eye on these offers that can help you save the most.

6. Avoid Hidden Charges

Some transfers come with hidden or unexpected costs that reduce the amount your loved ones finally receive.

These may include:

• Correspondent bank fees
• Receiving bank deductions
• Charges applied due to weekend or holiday processing
• Unlike traditional methods, most digital platforms offer transparent pricing.

With apps like LuLu Money, you know exactly how much you’re sending and how much your family will receive, with no surprises later.

7. Consolidate Transfers Where Possible

If you are someone who send money frequently, then:

• Combine multiple small transfers into one
• Use recurring transfer options when available
• Plan monthly or festive transfers in advance

This helps reduce repeated fees and maximises value.

Keep yourself informed about the common money scams around you!

Final Thoughts

The festive season is about joy, connection, and togetherness, not unnecessary remittance costs. By understanding remittance, comparing providers, using digital platforms, and planning your transfers wisely, UAE residents can save significantly on fees while ensuring timely support for their loved ones.

With the right approach, you can make every transfer count, keeping more money where it truly belongs: with your family back home.

Frequently Asked Questions (FAQs)

Why do remittance fees increase during the festive season?

During the festive season, remittance volume will be higher, and it is this increased demand that leads to increased fees and less favourable exchange rates.

Are digital remittance apps cheaper than banks?

Yes, digital remittance apps usually offer better exchange rates and lower fees compared to traditional bank transfers.

How can I ensure my family receives most of the money I send?

Compare providers, choose transparent platforms, and avoid last-minute transfers to reduce unnecessary costs.

Is it safe to send money through digital remittance apps?

Yes, authorised digital remittance apps follow strict security and regulatory standards to keep your transfers safe.

Can money be transferred instantly during the festive season?

Yes, many digital remittance apps offer instant or near-instant transfers, even during peak festive periods.

In most countries, money changes its mood overnight.
Exchange rates jump, fall, and force people to rethink plans they made just days ago.

In the UAE, that anxiety is largely absent.

The dirham wakes up looking the same: calm, predictable, almost indifferent to global currency drama. So what keeps the dirham so steady when most currencies move every day?

The answer lies in a deliberate monetary choice known as currency pegging.

Understanding this choice explains why the AED behaves differently from most other currencies.

What is Currency Pegging?

Currency pegging is when a country fixes the exchange rate of its currency to another major currency instead of letting it float freely in forex markets.

Let’s take the case of AED–USD peg:
1 US Dollar = 3.6725 UAE Dirhams

This rate has remained unchanged for years, maintained by the Central Bank of the UAE through monetary policy and foreign exchange reserves.

The goal? Stability.

Why the UAE Pegged the AED to the USD

Oil, Trade, and the Dollar Connection

Oil exports, which have been the backbone of the UAE economy, are traded globally in US dollars.
Pegging the dirham to the USD removes currency risk from oil revenues and simplifies international trade.

Predictability for Businesses and Investors

A stable currency helps forecast costs, assess risk more confidently, and avoid the issues that may arise due to currency fluctuations.
This predictability played a key role in positioning the UAE as a global hub for trade, finance, and entrepreneurship.
Stability builds trust and trust attracts capital.

Strong Control Over Inflation

This currency pegging helps the UAE manage inflation by anchoring the dirham to one of the world’s most influential and closely monitored currencies.
A stable currency protects purchasing power. That’s good news for residents, businesses, and anyone sending money home.

Financial Stability & Confidence

A fixed exchange rate tells the world that the country has sufficient reserves and economic discipline to defend its currency. This matters for a nation that thrives on global confidence from tourism to finance to remittances.

Here are the strongest currencies in the world!

How the Peg Works Behind the Scenes

A peg doesn’t survive on trust alone.

The Central Bank of the UAE actively manages interest rates and liquidity, often aligning with US Federal Reserve policy to maintain balance. When the dollar strengthens or weakens, the UAE adjusts to preserve the fixed rate.

This alignment ensures that demand for the dirham remains steady and speculative pressure stays low.

Benefits of a USD-Pegged Dirham

The key benefits of a USD-pegged dirham include:

• Minimal exchange rate volatility
• Lower currency risk for trade and remittances
• Investor confidence
• Price stability for consumers

For anyone sending money from the UAE to over 170 countries, this stability translates into clarity, with fewer surprises and better value visibility.

With the LuLu Money App you can track rates in real time and send money to several countries.

Are There Any Downsides?

Yes! No system is perfect.

While the AED–USD peg brings long-term stability, it also comes with a few trade-offs:

Limited Monetary Independence

Because the dirham is pegged to the dollar, the UAE can’t freely adjust interest rates purely based on domestic economic conditions. Monetary decisions in the US often influence borrowing costs and liquidity in the UAE.

Exposure to US Economic Policy

Changes in US monetary policy, such as interest rate hikes or cuts, directly affect the UAE economy. Even when local conditions differ, the UAE must align closely to maintain the peg.

Less Flexibility During Global Shocks

A fixed exchange rate limits how quickly the currency can adjust during major global economic disruptions. While this reduces volatility, it also means fewer short-term adjustment tools.

Dependence on Strong Foreign Exchange Reserves

Maintaining a peg requires significant foreign currency reserves. While the UAE is well-positioned today, defending a fixed rate always demands ongoing fiscal discipline.

Despite these limitations, the UAE has consistently judged that the benefits of stability outweigh the trade-offs. So far, the results support that choice.

Will the Peg Continue in the Future?

All signs point to yes.

The AED-USD peg is deeply embedded in the UAE’s economic framework, trade relationships, and financial infrastructure. With strong foreign exchange reserves and a diversified economy that still values stability, there’s little incentive to change course.

In a world of financial uncertainty, consistency is a competitive advantage.

Find out the best time to send money from the UAE to India!

The Bigger Picture

The AED–USD peg isn’t just about numbers on a screen.

It’s about removing uncertainty from everyday life.
It’s about ensuring that money behaves predictably, even when the world doesn’t.
And it’s about choosing trust over turbulence.

In a global economy addicted to movement, the dirham’s greatest strength is its refusal to move.

Frequently Asked Questions

Why doesn’t the UAE dirham’s value change like other currencies?

Because the UAE has pegged the dirham’s value to the US dollar. This ensures stability and predictability, thus maintaining a constant exchange rate instead of letting market demand decide the daily rates.

Can the UAE ever remove the peg to the US dollar?

Technically, yes, but practically, it’s unlikely in the near future. Since the peg is deeply tied to trade, investor confidence, and financial stability, removing it would introduce uncertainty.

Does the AED–USD peg affect interest rates in the UAE?

Yes. To maintain the peg, UAE interest rates often move in line with US Federal Reserve decisions. This helps keep capital flows balanced and prevents pressure on the dirham.

What does the peg mean for people sending money from the UAE?

It means fewer surprises. A stable dirham reduces exchange rate volatility, thus making it easier for you to understand the value of money being sent and received across borders.

Is a pegged currency stronger than a floating one?

Not stronger, but will be steadier. While floating currencies can gain or lose value quickly, a pegged currency focuses on consistency, which can be more valuable for trade, investment, and everyday financial planning.

Every money transfer, phone call or message opened; there is a purpose behind it. Supporting family, meeting responsibilities or building a better future are a few of them. Scammers understand this emotional connection. They do not rely on technology alone. They rely on pressure, urgency, fear and trust. That is why knowing the patterns matters more than knowing the platforms. Let’s have a look at the latest scams and how the fraudsters try to trap you.

1. ‘Official Fine’ Messages that Create Fear

A sudden message claims you have violated a rule or traffic law and must pay immediately. The wording sounds formal, the deadline feels urgent and fear takes over. Many click the link without verifying.
Remember that real authorities do not demand instant payments through unknown links or messages.

2. Fake Toll or Road Fee Alerts

Small amounts seem harmless making these scams easy to ignore until it’s too late. A fake link leads to a payment page designed to steal your card details.
Pause and check; toll payments should only be made through official apps or portals you already trust.

3. Fake Remittance Calls & Transfer Release Scams

Calls or messages claim an issue with your transfer and ask for OTPs, PINs or card details to ‘release’ the money.
Remember this always, no genuine remittance service will ever ask for such information.

4. Look-alike Recharge Websites

Scammers copy the design of well known platforms almost perfectly. One wrong click can expose sensitive information.
Type website addresses yourself or use official mobile applications.

5. Job Offers that Ask for Money

Hope becomes the weapon here. Promises of employment are followed by requests for processing or visa fees.
Legitimate jobs never ask candidates to pay to get hired.

6. Calls Pretending to Be from Your Bank

A calm voice warns of a blocked account or security issue and asks for verification details.
Banks never request OTPs, PINs or card numbers over calls.

7. Fake Buyers and False Payment Proofs

Screenshots of transfers are shown as proof pushing sellers to release goods.
Be patient and only act after money is fully credited to your account.

8. Unreal Online Shopping Discounts

Limited time offers and countdowns push impulsive decisions.
Urgency is a scammer’s strongest tool.

9. Utility Refund or Bill Adjustment Emails

Small refund promises hide dangerous links.
Verify directly or check refunds only through official utility channels.

10. Public Transport Card Top Up Scams

Fake top up pages mimic real systems to collect card details.
Stay cautious and use only official apps or authorised counters.

A Final Thought

Scammers succeed when we rush. Safety begins when we stop, think and verify. Protecting your money means protecting your family, your effort and your future.

Stay alert. Stay safe.

In a world of constant global money flows, one currency stands out from the others, the United States Dollar. Be it a money transfer from UAE to Kuwait, OMR to GBP currency exchange, or daily forex rate analysis, the dollar influences it all.

Movements in dollar values ripple through every transaction. So the question is, why does the USD hold such power? Why does a shift in the American economy affect the world’s exchange rates? It’s time to find out.

Dollar – The World’s Financial Anchor

The US dollar is not just America’s currency, it’s the centre of the global financial system. After World War II, based on the Bretton Woods Agreement, most world currencies were pegged to the USD, while the dollar itself was backed by gold.

Even after the system ended in the 1970s, the dollar continued to maintain its dominance. Over 80% of global trade and 60% of central bank reserves are held in USD.

In short, when the dollar moves, the currency rates move.

Check the AED to USD rates!

How the USD Shapes Other Currency Rates

Movements in dollar value create a ripple effect across most major currency values. Want to know why? Here are the reasons:

The Dollar Is the World’s Default Trade Currency
Oil, gold, and gas which are major global commodities, are priced in USD. Changes in the dollar value causes changes in the price of these commodities thereby causing fluctuations in the currency values of the countries purchasing these commodities.

Global Investors Treat the USD as a Safe Haven
During uncertain times, global investors rely on the US dollar. This increased demand for USD weakens other currencies.

US Interest Rates Influence Global Money Flows
As the US Federal Reserve raises interest rates, investors are more likely to move funds to the US for better returns. This increases demand for USD which in turn puts pressure on other currencies.

Many Countries Borrow in USD
Most developing countries take loans in dollars. When the dollar strengthens, repaying debt adds stress to their financial systems, often leading to weaker local currencies.

Central Banks Hold USD as a Primary Reserve
Most central banks hold large reserves in US dollars. Any change in these holdings, or in confidence toward the US economy, shifts global demand for the dollar, influencing the value of other major currencies.

What Gives the US Dollar Its Global Strength

The US dollar has great control over the exchange rates of other currencies. Why is that so? Here are the key reasons behind its global strength.

Large and Stable US Economy
The US economy is one of the world’s strongest, most transparent, and most resilient economies. As a result, global governments, banks, and investors consider USD as a trustworthy store of value.

Deep, Liquid Financial Markets
The US has the biggest and most accessible financial markets. Anyone can buy or sell USD assets easily, in huge volumes, without affecting prices too much. No other currency offers this level of liquidity.

The USD’s Dominance in Global Trade
To buy commodities such as oil, gold, natural gas, machinery, and electronics, which are priced in USD, countries need dollars. This forces other countries to hold and use more USD, strengthening its dominance.

Network Effect: Everyone Uses It Because… Everyone Uses It
Similar to platforms like Google, once the world adopts a system widely, it becomes very hard to replace. USD is deeply embedded in international trade, cross-border payments, forex markets, global debt, and remittances.

All the above mentioned factors keep the USD powerful.

Why This Matters for Your Money Transfers

Changes in USD values result in variations in the global currency values. Understanding the dollar’s behaviour helps you in the following ways:

• Send money when you get better value
• Read market trends more confidently
• Understand why rates change day to day

This is especially useful for expats in the GCC and other countries who send money regularly.

Download the LuLu Money App and send money at the best rates!

How Will Dollar Value Fluctuations be Useful for Expats?

For millions of expats living in the UAE, Saudi Arabia, Kuwait, Oman, Bahrain, and Qatar, it is important to understand how changes in the US dollar values affects how much their families receive back home.

Consider that you’re an expat in the UAE sending AED to INR. When USD strengthens in the global market, INR weakens as it is sensitive to USD movements.

Let’s understand this with an example.

So, here’s how remittance value get affected as USD strengthens or weakens:

A stronger USD means expats can send more money home without spending extra.

Find out the best time to send money from the UAE to India!

Can BRICS Reduce the World’s Dependence on the US Dollar?

To reduce the dependence on the US dollar, especially in energy and commodity trade, BRICS (Brazil, Russia, India, China and South Africa) started to actively explore alternatives to the US Dollar. This includes settling trade in local currencies and also introducing BRICS currency.

However, experts note that the US dollar continues to dominate due to its deep liquidity, established financial infrastructure and widespread global usage. From central bank reserves to international payments and commodity pricing, the USD still anchors the global financial system.

In short: BRICS may gradually reduce reliance on the dollar, but the USD’s dominance remains secure for the foreseeable future.

Frequently Asked Questions

Will USD affect the remittance value?

Yes. When USD strengthens, it weakens most emerging market currencies often resulting in better conversion rates. This will be useful when sending AED, SAR, OMR, or KWD to countries like India, Pakistan, Sri Lanka, or the Philippines.

Why are global commodities priced in USD?

Because the USD offers stability, liquidity, and global trust. It is the easiest currency to use for standardising prices across countries.

What happens to exchange rates when the US raises interest rates?

With higher interest rates, there will be higher foreign investment into US markets. This strengthens USD and weakens other currencies improving the exchange rates for remitters.

What changes happen to other currencies with changes in US inflation?

High inflation in the US weakens the USD, while controlled inflation strengthens it and global currencies tend to react accordingly.

Are there any chances that the US dollar will lose its global dominance in the future?

While other currencies are rising in importance, no currency currently matches the USD in trust, liquidity, and global usage.

For millions of Indians living and working in the UAE, sending money home isn’t just a transaction but also an act of love. It pays for a child’s education, supports aging parents, funds dreams, or simply keeps a family connected across borders.

If you regularly send money to India, you already know that timing matters. A few days, even hours, can sometimes change how many rupees your loved ones receive. So, knowing the best time to send money can make every dirham count.

Let’s break down when and how to send money from the UAE to India to get the best possible value for every dirham.

Why Timing Matters

To help you understand why timing is important, let’s take an example.

At 1 AED = 23.8 INR, 15000 AED = 357000 INR

At 1 AED = 24.02 INR, 15000 AED = 360300 INR

That’s a difference of 3300 INR just from a 0.22 change in the exchange rate. Even a small fluctuation can make a big difference, especially if you send money frequently or in large amounts.

Now you can see why timing matters. So, let’s explore when it’s the best time to send money from the UAE to India.

Check Live Exchange Rates

What Affects the AED–INR Exchange Rate

Several factors influence how the AED–INR rate moves over time. Understanding them can help you plan your transfers better.

• Oil Prices: As the UAE is a major oil exporter, strong oil prices often boost the dirham’s strength, giving you better exchange rates.
• Interest Rates & Inflation: Higher inflation or lower interest rates in India can weaken the rupee, thus increasing the conversion value.
• Trade Balance & Imports: India’s reliance on imports can put pressure on the rupee, especially when global prices rise. This can be advantageous when you send money to India.
• Global Market Changes: Political changes, U.S. dollar trends, or economic data from major economies all affect how the rupee performs.

Regularly keep an eye on these trends so that you can anticipate when your dirham will go further in India.

Want to know in detail why exchange rates keep changing? Read our article on exchange rates.

Best Time to Send Money From UAE to India

To send money at the best rates, it’s important to know when to send your money.. Based on market trends and expert insights, we have sorted for you most favorable times to transfer money from the UAE to India:

(i) Before Major Festive Seasons: During festival seasons, remittance volumes will be high, and exchange houses may raise transfer fees. For better rates, send money a week or two before festive demand peaks.

(ii) During Economic Calm: Stable oil prices, low inflation, and steady interest rates in both countries usually results in more consistent currency movement. Hence, you can confidently send money without fear of sudden rate drops.

(iii) In the Middle of the Month: Avoid sending money right after payday or at the end of the month when remittance activity peaks. Mid-month transfers typically offer more favorable rates and lower fees.

(iv) When Transfer Fees Are Low: Compare the transfer fees across different money transfer services and choose the one that offers the lowest fee hence increasing overall value.

(v) When INR Weakens: A weaker INR means you get more value per dirham. When the INR weakens due to global or domestic factors, UAE senders get more rupees per dirham, making it an ideal time to send.

Read and find out how AI Will Impact Money Transfer in the Future!

Historical AED–INR Exchange Rate Trends

The chart shows almost a steady rise in the AED to INR rate which is around INR 22.99 in November 2024 to INR 24.08 in October 2025. This indicates that the Indian rupee gradually weakened against the dirham, giving UAE senders more value per transfer over time.

Rates surged between December and February, dipped slightly around April–May, and peaked again from August to October, making these the best months to send money from the UAE to India.

However, these fluctuations vary each year, so it’s always wise to keep an eye on live exchange rates before making a transfer.

Send Money to India Now Using LuLu Money App!

Tips to Send Money at the Best Exchange Rates

If you follow a few simple habits, you can increase your chances of sending money at the best AED to INR rates. Here’s how:

Use Rate Alerts

Apps like LuLu Money offer rate alert features that notify you when the AED to INR exchange rate reaches your preferred value. This helps you time your transfer and lock in the best rates.

Plan Regular Transfers

Instead of sending a large amount in a single transfer, split it into smaller ones. Try sending one part early and the other mid-month. It helps average out any rate fluctuations.

Compare Before Sending

Always compare the live rates, service fees, and processing times across different platforms. Apps and exchange houses often offer better rates than traditional banks.

Choose a Reliable Channel

Always use licensed and secure remittance providers. With LuLu Money, you can send directly to any Indian bank account with live rates, quick processing, and peace of mind.

Here are the reasons as to why AED is pegged to USD!

Frequently Asked Questions

Is it cheaper to send money during weekdays or weekends?

Weekdays usually offer slightly better rates since global forex markets are open. Weekends may reflect Friday’s closing rates. For the best rates, check just before market closure (especially on Thursday evening UAE time).

How do global oil prices affect AED to INR exchange rates?

When oil prices are strong, the UAE’s currency remains stable or slightly stronger thus giving senders more value per dirham during transfers to India.

Can minor changes in exchange rates really make a difference?

Absolutely. Even a 0.20 change in the AED to INR rate can mean hundreds or thousands of extra rupees on larger transfers. Always check the latest rate before sending money.

Is it better to transfer money in one go or in smaller amounts?

If rates are favourable, send in one go for a better value. When rates are uncertain, splitting transfers can help you average out the rate.

What should I do if the exchange rate is low but I need to send money urgently?

In such cases, focus on reliability over rate. Using trusted platforms like LuLu Money ensures your funds reach safely and quickly, while frequent users can enjoy loyalty rewards and future high-rate windows.

Sending money to loved ones abroad is a gesture of trust. Unfortunately, scammers often exploit this trust by creating fake money transfer schemes that promise quick or cheap services but end up stealing your hard-earned money. Knowing the warning signs can help you stay protected and ensure your money reaches safely where it is meant to.

Common Red Flags to Watch Out For

• Too Good to Be True Offers – If someone claims they can send your money instantly with very low or “zero” fees through unofficial channels, it’s usually a scam. Always check the authenticity of the provider.
• No Receipts or Documentation – Legitimate transfers always come with receipts and transaction numbers. Fraudsters avoid giving proof.
• Social Media Deals – Be cautious of individuals advertising money transfers through WhatsApp, Facebook or Instagram. These are not licensed services.
• Urgency and Pressure – Scammers often push you to proceed fast, making you believe you’ll lose a “special rate” if you don’t pay immediately. Instead of offering the best rates, scammers may create urgency or pressure like claiming you’ve won a lottery and must pay a fee to claim your prize.
• Unverified Accounts – Transferring money into personal accounts instead of company accounts is a major red flag and never send money to people you don’t know.

Why Licensed Exchange Houses Are Safer

Licensed exchange houses like LuLu Exchange operate under the strict regulations of the Central Bank of the UAE. This means every transaction follows international compliance standards, ensuring transparency, security and accountability.

Unlike unauthorised channels, exchange houses:

• Provide Receipts: Every transaction is officially documented.
• Use Secure Systems: Your money is transferred through trusted banking and financial networks.
• Offer Consumer Protection: If something goes wrong, you have legal rights and official support.
• Ensure Fair Rates: Rates and fees are clearly displayed and regulated with no hidden charges.

The Smarter Way to Send Money

While scammers may lure you with tempting offers, the risk of losing your money is far greater. Licensed exchange houses protect your funds while providing security. When it comes to remittances, always choose trust over shortcuts.

Your money is your hard work, protect it by staying smart and sending money via regulated, reliable & reputable channels.

When it’s salary day, people around the world will be eagerly waiting for that one thing: their money arriving on time without any discrepancies. In the UAE, to give extra assurance that their salaries are paid on time, the Wage Protection System (WPS) was introduced.

So, what is WPS in UAE, why was it introduced, and how does it impact both employers and employees? Let’s take a closer look.

What is WPS in UAE?

Wage Protection System or WPS in UAE is the electronic salary transfer system developed to ensure that the employees receive their salaries on time. The system was introduced in July 2009 by the UAE Central Bank and the Ministry of Human Resources and Emiratisation (MOHRE).

Why was WPS Introduced?

WPS was introduced in response to multiple reports regarding delayed or missing salaries. This was a common concern for expats who send money home. Even a minor delay in wage payments can result in unpaid rent, missed bills, or hardship for families abroad.

So, the UAE government introduced WPS to:

• Ensure timely wage payments.
• Create a traceable record of salary transfers.
• Prevent disputes between employers and employees.
• Enforce accountability on companies.
• Enhance trust in the labour market.

For businesses who seek to simplify payroll and ensure WPS compliance, explore LuLu Exchange’s Wage & Salary Administrator services!

How Does WPS Work?

The infographic below shows how wages flow through the WPS system.

Now let’s find out how the Wage Protection System works in the UAE. Here’s a step by step process:

• WPS Registration: Employers must first register with WPS through a UAE bank or with a WPS-approved financial institution.
• Timely Submission of Salary Information: Next, it’s the duty of the employer to submit the Salary Information File (SIF) of the employee through the WPS platform.
• Salary Disbursement: Once the information provided is verified by the Central Bank & MOHRE, the bank issues a payment order through WPS and notifies the employer. Salaries will then be sent to the employee’s bank account via WPS, with email alerts sent if corrections are required.
• Monitoring & Compliance: WPS system ensures that the payment is properly processed and received by the employee. In case of any delays, discrepancies, or payment failures, the employer must resolve the issue and resubmit.

Who Is Included and Who Is Exempt from WPS?

All private sector companies registered with MOHRE are included under WPS.

Those who are exempted from WPS are:

• Employees who have filed a wage-related labour complaint.
• Employees who are officially reported absent as per the ‘work abandonment’ report.
• UAE-national employers who own fishing boats and public taxis.
• Banks and houses of worship.
• New employees in their first 30 days.
• Employees who are on unpaid leave.

If you’ve received your salary on time, you can send money to your loved ones through the LuLu Money App!

How to Register for WPS?

Here’s how you as an employer should register for WPS:

• Register with MOHRE (Ministry of Human Resources and Emiratisation).
• Open a Corporate Bank Account with a bank that supports WPS.
• Select an authorised WPS agent approved by the UAE Central Bank.
• Sign an agreement with the chosen WPS provider.
• Prepare a Salary Information File (SIF) in the required format and upload it through your bank or the WPS system.
• Transfer salaries to employees’ accounts via WPS as per the due dates in their contracts.
• MOHRE and the bank will review the transfers and confirm compliance.

Penalties for Late or Non-Payment of Salaries

Here are the penalties for late or non-payment of salaries:

• On salary due date: All establishments will be monitored electronically for timely payments.
• 3–10 days late: Reminders will be sent to employers.
• 17 days late: Work permit issuance will be suspended for all its establishments; larger companies (50+ employees) may face inspections and get warnings.
• 45 days late (50+ employees): Legal action will be initiated by authorities.
• Repeated violations within 6 months: Fines will be applied and establishments will be reclassified under stricter regulations.

Also Read: How AI Will Impact Money Transfer in the Future

Frequently Asked Questions

Is WPS in UAE only for UAE nationals?

No. WPS in UAE applies to all private-sector employees including the UAE nationals working under the UAE labour law (with certain exemptions).

Which sectors fall under WPS?

The Wage Protection System (WPS) applies to the private-sector companies across all sectors.

Does WPS cover allowances, overtime, deductions?

Yes. The SIF file must include basic wages, allowances, and legally permissible deductions so that net salary is correct.

What should I do if my employer doesn’t use WPS?

If your employer doesn’t use WPS, you can file a complaint with MOHRE/LRA with proper evidence.

Is WPS applicable for part-time employees?

Yes, WPS is applicable for both part-time and full-time employees.

Are there any penalties for late or non-payment of salaries?

Yes. Penalties will depend on how late the payment is and may include fines, suspension of services, or legal action against the employer.

We often think that change requires grand gestures but the truth is that small, consistent actions can transform the world around us. Every choice we make, what we buy, how we use resources and even how we manage our finances creates ripples that extend far beyond our individual lives.

Take a simple example: choosing to carry a reusable shopping bag. On its own, it seems minor. But when thousands of people make the same choice, it significantly reduces plastic waste and encourages retailers to rethink their packaging. Similarly, being mindful about reducing food waste at home saves money while helping cut down on greenhouse gas emissions from landfills. These choices, though small, contribute to healthier communities and a more sustainable planet.

The same principle applies to financial decisions. How we save, spend and protect our money directly influences our own future while setting a tone for others around us.

Smarter Saving Habits

Building a habit of saving, even if it’s just a small amount each week, creates financial security and peace. Over time, these savings can grow into an emergency fund or investments for long-term goals. Just like carrying that reusable bag, small deposits done consistently can make a big impact.

Staying Scam-Safe

One careless click in today’s digital world can lead to serious losses. Being cautious about sharing personal information, double-checking suspicious messages and only using trusted financial apps or institutions helps protect us from scams. When we practice safe financial habits, we encourage others to do the same. It creates a ripple effect of awareness and safety.

The ripple effect becomes even stronger when these habits inspire others. A colleague sees you setting up a savings goal and decides to start one too. A family member watches you avoid a suspicious investment scheme and becomes more alert themselves. Slowly, communities shift toward safer, more responsible financial behaviour.

The beauty of the ripple effect is its simplicity. You don’t need to be a policymaker, activist or entrepreneur to make a difference. Be it carrying a reusable bag or setting up auto-savings. Positive change is built step by step through mindful choices.

It’s never too late to start!. But start small today! Save a little each week, stay alert against scams, go digital with your finances and spend consciously. Remember, your everyday actions can spark ripples that shape a more sustainable, financially secure, compassionate and connected future for generations to come.

Just think back 5 or 10 years. Sending money across borders often meant waiting days or even weeks for it to reach your loved ones. Today, those same transfers reach them in seconds.

Whether it’s a father supporting his family, a student paying tuition abroad, or a business settling accounts overseas, remittances have become faster and more reliable than ever.

Artificial Intelligence (AI) is now rewriting the next chapter. Just as smartphones transformed the way we communicate, AI is transforming the way money moves across borders, making transfers faster, safer, and more human.

If you are staying abroad and need to check the live exchange rates, check them now before we get into the details.

Check Live Rates & Send Money

Now, let’s explore how AI will shape the future of payments.

The Current Role of AI in Payments

Before finding out the future impact of AI in payments, let’s first look at how it’s already transforming the payment industry today:

• Fraud detection & risk assessment: AI tracks transaction velocity, device fingerprints, unusual location/IP jumps to detect suspicious activity.
• Revenue growth: The finance/payment industry multiplied their total revenue by leveraging AI-powered insights and efficiencies.
• Smarter compliance: AI streamlines KYC and AML checks by automating tasks like document scanning with OCR, identity verification, and cross-checking against sanction lists.

• Personalised experience: AI makes customer experience more personalised by making use of chatbots, payment suggestions, smoother UIs, voice-enabled interfaces.
• Optimised cross-border payments: AI helps to reduce costs, improve exchange rates, speed-up transfers, and choose optimal routing.

Find out the significance of SWIFT code in cross-border payments!

How Will AI Shape the Future of Money Transfer?

From what we see today, AI’s huge potential to redefine the money transfers is evident. Here’s how AI is likely to impact payments in the coming years:

Faster Transfers

Traditional transfers which involved multiple steps and waiting times are now much faster with AI. With instant data analysis and intelligent routing systems, your money reaches loved ones much faster, with speeds set to improve further.

Hyper-Personalised Experience

AI will act as a financial assistant in your pocket by suggesting the best transfer times, predicting your needs, and simplifying every transaction. In this way, it will make every transaction more personal, convenient, and stress-free.

Stronger Security

AI has the ability to detect unusual/fraudulent behaviors in real time whether it’s a login attempt from an unknown device or an unusually high transfer amount.

Risk models are evolving to become even more sophisticated, while counter-AI systems are emerging to deal with fraudsters using AI themselves. As a result, users will be more confidence about the safety of their money.

Automated Global Compliance

AI will evolve to manage compliance seamlessly across borders. It will handle complex regulations, monitor transactions in real time, and predict risks before they occur. In this way, there will be less delays and smoother, more secure international transfers.

Lower Costs

AI doesn’t just make things faster; it makes them cheaper. By automating manual processes and reducing human error, AI helps financial providers cut operational costs, thus letting users pay lower fees, making remittances more affordable for millions.

Customers will see even more transparent, possibly lower, fees in the future.

Send money home using LuLu Money App. Let your love reach home instantly!

Financial Inclusion

Perhaps the most exciting impact of AI is its ability to bring more people into the financial system. By analysing alternative data (like mobile usage or payment history), AI will help assess creditworthiness for people without a traditional banking footprint.

Thus AI will offer safe and affordable transfer services to more migrants, workers, and families, without giving anyone a feeling of being left out of the system.

In short, AI will handle the complexities, so people can focus on what matters most: supporting dreams, staying connected, and building better futures.

What Are the Challenges and Risks of Using AI in the Payment Industry?

Let’s examine the day-to-day challenges and macro-level risks.

Day-to-Day Challenges:

• Different rules in each country make automation tricky.
• Risk of wrongly flagging genuine transfers as fraud.
• Challenge to strictly follow strong data protection and privacy rules.
• Absence of proper infrastructure in certain recipient countries to support AI.
• High integration costs and need for skilled people to maintain AI systems.

Macro Level Risks:

• Potential risks of faster spread of financial shocks (IMF) if many financial organisations use similar AI models.
• Regulators are closely watching how AI is used in fraud checks, money laundering, and cross-border transfers.
• Global payment systems may face new pressures during crises; AI can help predict risks but may also create new weak points.

Have a look at the currency symbols in the world!

Preparing for the Future of Cross-Border Payments

AI is already here. Those who prepare early will win trust and be competitive. Here’s how:

• Start small: Use AI for fraud checks, KYC, or exchange rates in low-risk corridors before scaling.
• Use better data: A model is only as good as the data it learns from. So, use clean, diverse data and respect privacy.
• Focus on user transparency: When the system makes a decision such as delaying or flagging a transaction, or adjusting costs, users should know why. This builds trust.
• Think inclusion: Build AI that works even for people with weak internet, basic phones, or limited documents.
• Work with regulators: Stay ahead of evolving rules on AI, data privacy, and cross-border compliance to ensure long-term stability.
• Maintain human oversight: Even with advanced algorithms, human review of edge cases and escalations is important.

Also Read: What is WPS in UAE?

A Future Scenario

Picture this: You are in Dubai, sending money every month to your elderly parents in the Philippines. If we assume the future scenario, AI could make it look like this:

You open your app, and AI suggests the best time of that day to send money at the lowest fee and best exchange rate.

You scan your ID via the app; AI verifies identity within minutes with OCR + biometric checks.

Your money goes via the optimal routing path, passing through fewer intermediaries, at lower cost.

If delays are expected, you’re alerted and given a choice to proceed or wait.

If there are no delays, your money gets delivered instantly to your parents.

Small, but powerful improvements like these multiply across thousands of users to make the system smoother, cheaper, and more human.

Conclusion

AI has already taken its place in the payment industry becoming the backbone of safer, faster, cheaper, and more inclusive remittances. While technology alone won’t solve every problem, the opportunities are huge.

For providers who embrace AI thoughtfully will build greater trust and loyalty. For users, it means transfers won’t just move money, but will also carry care and connection with far less friction.

Frequently Asked Questions

How will AI change the future of banking?

AI will make banking faster, safer, and more personalised with instant KYC, fraud alerts, and tailored financial advice.

How will AI impact remittances?

It will simplify sending money across borders with instant ID checks, better exchange rates, and fewer delays for families worldwide.

Is AI a threat to banking?

If managed properly, AI won’t be a threat to banking. The real threat comes from poor oversight, biased models, or weak data governance.

Will AI replace humans in the banking sector?

No. AI will handle routine checks and speed up processes, but human oversight will still be key for trust, fairness, and complex cases.

In today’s interconnected world, sending money across borders demands precision. Even a small error can result in delays or failed transactions. That’s where IBAN, or International Bank Account Number, comes in.

But what exactly is IBAN, and why is it so important? In this article, we’ll break it down so you know how IBAN ensures your money reaches the right account, safely and on time.

What is IBAN Number?

IBAN or International Bank Account Number, as the name suggests, is a bank account number identified by banks and financial institutions around the world during cross-border/domestic payments.

Check Live Exchange Rates

It was initially adopted by the ECBS (European Committee for Banking Standards) and, since 1997, has been established as an international standard under ISO 13616-1:2007.

When a SWIFT code identifies the recipient bank, IBAN identifies the recipient account inside that bank. Certain countries mandate the use of IBAN, so you will need it when you make international payments to those countries.

Have a look at the strongest currencies in the world!

What Is the Standard IBAN Structure?

IBAN consists of alphanumeric characters and its length varies depending on the country. It can be anywhere from 15 to 34 characters long.

When it comes to UAE IBAN numbers, they start with AE and consist of 23 alphanumeric characters. The infographic given below represents a standard IBAN format:

Here’s what the UAE IBAN Number – AE47 0331 2345 6789 0123 456 represents:

• AE – ISO Country code (UAE)
• 47 – Check digits for validating the IBAN
• 0331 2345 6789 0123 456 – BBAN (Basic Bank Account Number)

BBAN will have a fixed length per country. In the UAE, the first 3 digits in the BBAN represent the bank code to identify the bank and the next 16 characters represent the customer account number.

How to Find & Use IBAN

If you want to find your IBAN number, just log in to your online banking dashboard or check your bank statement. While doing international transfers, simply provide your IBAN along with the SWIFT code. This ensures your money is sent quickly, securely, and without errors.

Download the LuLu Money App and send money across borders. 

Why is an IBAN Number Important?

You know that a SWIFT code will help to ensure that your money reaches the right bank, right? Then what is the importance of IBAN? Let’s see.

Here’s why IBAN is important.

• Reduce errors – With IBAN, cash transfers will be error-free.
• Saving time – With minimal dependency on manual interpretation and validation of account details, international payments will be quicker.
• Secure – Before every transaction, each character will be validated to avoid errors, thus ensuring security.

What Happens If You Enter a Wrong IBAN Number?

Just imagine that you have sent a parcel and mentioned the wrong house number. What will happen? It will get delivered to the wrong destination, right? Similarly, if you’ve entered an incorrect IBAN, there are chances that it gets delivered to the wrong account.

But, in most cases, the system catches the error and your payment will bounce back. But if the IBAN is valid and actually belongs to another account, there are greater chances for the money to get deposited in that account. In such rare cases, it will be extremely difficult to recover the funds.

Hence, just as you double-check your SWIFT code, you should also verify your IBAN before confirming a transfer.

Have a look at the world currency symbols!

Frequently Asked Questions

Who can issue an IBAN?

The account-servicing financial institution has the right to issue an IBAN.

Is IBAN required for domestic transfers?

Yes, in certain countries like UAE, IBAN is required for international and domestic transfers.

Is IBAN a new account number?

No, IBAN is not a new account number. It is just an electronically-recognisable ISO standard format of your existing account number.

Is IBAN the same as SWIFT?

No, IBAN is required to identify the exact bank account while SWIFT is required to identify the bank. You will need both IBAN and SWIFT for cross-border payments.

Does every country use IBAN?

No, not all countries use IBAN. It is standard in Europe, the Middle East, and several other regions. Countries like the United States and Canada, however, use different systems.