For millions of expats living in the Middle East, sending money home is more than just a financial transaction—it’s a vital link to their families and often an economic lifeline. But in 2025, sending money abroad has become more complex. Exchange rate fluctuations, shifting economic conditions, and inflationary pressures mean that expats must be more strategic than ever.
The currency challenge
Recent global events—from the 2024 US elections to monetary policy shifts and economic uncertainty—have strengthened the US dollar and pressured Asian currencies. The Indian rupee (INR) and Pakistani rupee (PKR) hit record lows in January, creating a window for expats in the UAE and Saudi Arabia to remit funds at more favourable rates.
During this period, Careem Pay saw a sharp rise in international transfers as many expats capitalised on the opportunity. Others, especially those remitting for investment purposes, have been more cautious given the impact these tariffs and policies have had on stock markets, including in India, where the market has declined by 10% from its peak in September 2024.
Broader forces, such as ongoing trade policy debates, continue to influence currencies in export-reliant economies and, by extension, remittance flows.
How expats are adapting
Expats are not passive players in this landscape; they continue adapting. More expats are closely tracking exchange rates, using digital tools to time their transfers more effectively. There’s a growing shift toward smaller, more frequent transactions, helping mitigate currency risk while maintaining consistent support for families.
We’ve seen increased activity in corridors like the UK and Europe in early 2025 compared to late 2024. The UK and Europe lead in ticket volumes, indicating a higher total value of transfers. Meanwhile, Pakistan sees the highest frequency of transactions throughout the month, highlighting a preference for more regular money transfers.
Fintech’s role in reshaping remittances
Traditional banking channels have long dominated the remittance space, but they have drawbacks: high fees, slow processing times, and limited transparency. While many sectors in the UAE have modernised rapidly, remittance services have lagged behind—until recently.
Local fintech players are now transforming the space. In the UAE, for example, 63% of residents receive money through digital apps rather than traditional methods, while in Saudi Arabia, the figure is even higher at 67%. Over half of all remittances in both countries are now sent digitally.
This shift is having a major impact in two ways. First, it’s making financial services more accessible for people who rely on every dirham of their income, ensuring they can send money home quickly and affordably. At the same time, higher-income customers who transfer larger amounts are saving significantly – often hundreds of dirhams per transaction compared to banks.
As economic conditions evolve, expats need smarter tools to manage their finances. Fintech is playing a key role in meeting that need, offering faster, cheaper, and more transparent solutions. By leveraging features like exchange rate alerts and real-time transfers, expats can make every dirham count.
The future of remittances is about more than just moving money—it’s about financial empowerment and ensuring that every transfer makes a meaningful impact.
