# Money transfer to Dubai.



## blue_moon (Apr 25, 2012)

I will be moving in later in the summer, and I need to get in some of my own money for the start. And this could end up a large sum if I will need to rent the flat with just 1 check.

So how do you get your money in, without paying a lot on commissions and exchange rate fees? I read somewhere that they take like 10% of your transfer just for commission? True? False?

This is rather important because if you need to get 120K in for renting the flat, you better get a good exchange rate and no administration feels... so could you advicse me on this or share your experience?


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## noisyboy (Nov 13, 2011)

Honestly, I'd bring it in cash (USD) with a paper from the bank mentioning you withdrew it from your account. Additionally, I'd declare it as soon as I arrive to the airport. 

120k dirhams in cash, on hand, is something that should not surprise you in this part of the world. Not saying its common, but it happens a lot.


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## Canuck_Sens (Nov 16, 2010)

I recommend doing this:

a) Open a savings account in the UAE (you can as foreigner). You will get an IBAN number. Open in a bank that operates in the UAE and there in your country (e.g. hsbc, barclays)

b) Instruct your bank in your country to wire the funds to your savings account. Voila.

Open in the same bank because you will know for sure that you are getting it.

Never seen any bank charging 10%.


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## noisyboy (Nov 13, 2011)

Canuck_Sens said:


> Never seen any bank charging 10%.


Me neither!


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## rsinner (Feb 3, 2009)

Actually, the commission (more accurately the spread between the actual rate and the rate that the bank gives to you) could be as high as 5% or in some cases more (esp. for credit card transactions). 

I agree with the suggestion above. Best is to bring USD in cash!


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## noisyboy (Nov 13, 2011)

rsinner said:


> Actually, the commission (more accurately the spread between the actual rate and the rate that the bank gives to you) could be as high as 5% or in some cases more (esp. for credit card transactions).
> 
> I agree with the suggestion above. Best is to bring USD in cash!



That's what I would do, USD to AED rate is rather stable. Just tell me when you arrive and how you look so I can jack you :boxing:


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## Archer7 (Jan 16, 2012)

10% is definitely not true.


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## Archer7 (Jan 16, 2012)

10% is definitely not true.


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## bluebird77 (Apr 10, 2012)

Via bank is safer and hassle free. 

But there is also traditional way by sending it through an agent. 
You can find an agent locally in areas where people from minority background live. They can help you save a lot. 
In 120k Dhs you looking to about 2k loss if sent via bank. Because bank charges your their Own rate. 

Bringing $ with you can save you a lot of money. Because you can exchange it here in Dubai with a very good exchange rate. 

It's common in Dubai keeping 100k in your pocket. And you wont be stopped and asked. 
Plus it's 0% crime as far as i know. 

Hope this helps.


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## fcjb1970 (Apr 30, 2010)

Your employer won't give you a housing loan against you salary? Thought that was pretty standard


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## blue_moon (Apr 25, 2012)

Thanks for the replies. I been to UAE and I don't have an account there so I don't feel comfortable running around with 25,000 euros in my pocket or stored in my hotel room when I go for the swim. 

So I think what I have to do once I get there start an account, get the IBAN of the account and have my wife transfer 25,000 euros from euro-area bank to that IBAN of the UAE bank and hopefully something close to 120K will show up in my account few days later.

I understand there are not that many chargers like 10% of the amount that I was afraid of. Ok I might loose some 400 euro on the exchange rate compared to exchanging it in chash with some unknown guy in a shade of the night, but I prefer to go for safety here first.

I am thinking to transfer euros from euro-area bank, because I don't have any US dollars or any US dollar accounts, so setting exchange my euros to dollars and setting up an dollar account or the transfer would be a lot of hassle and also cost some fees. 

P.S. Regarding the housing loan against my salary, that's a good point --- I will ask about it.--- maybe they have this options if it is standard.


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## basc (May 18, 2011)

You can setup an account with a currency broker such as gcen.co.uk and then compare whatever rate they give you for EUR - AED transfers to your bank rate - for me they have always come up with a better rate and there is only a few days extra involved in the transfer process.


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## ziokendo (Jan 7, 2012)

blue_moon said:


> Thanks for the replies. I been to UAE and I don't have an account there so I don't feel comfortable running around with 25,000 euros in my pocket or stored in my hotel room when I go for the swim.


The maximum you can export cash from Shenghen Area, if I remember correctly, is 10,000 euros.

I would do that to start with, you can have a pretty good rate exchanging at legitimate shops when changing a lot of money: it's the best way to move money honestly, and Dubai is pretty safe, the hotel will have a safe in the room, and they wouldn't know if inside it's just your ipad, or 50.000 eur.

Actually I have done my math and the spread eur-usd - usd-aed makes still convenient, at least from my bank back home in Italy, to send USD, because if you send euros they will rip you off. Mashreq charges more than 3% + fees, while in USD it's something like 0,8%, and my bank is charging 1% from Eur to USD, to it's 1,8% against 3%.

Check with your bank their rates, and decide.

Some bank in europe will also transfer AED but they are going to rip you off big time.


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## blue_moon (Apr 25, 2012)

By the 3% or 1.8% you mean the exchange rate spread, correct?

Are there any fees for the actual transfer taken by the UAE or European banks? Or that is usually free?

Finally, do expats usually have USD accounts with the UAE banks? That way you can transfer USD from your home country bank to USD account in your UAE bank.


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## ziokendo (Jan 7, 2012)

blue_moon said:


> By the 3% or 1.8% you mean the exchange rate spread, correct?


Yes. 



> Are there any fees for the actual transfer taken by the UAE or European banks? Or that is usually free?


My bank charges a lot, like 20 or 25 euros. UAE bank I don't remember how much does it takes, at least 25 dirhams ... So if you transfer small amounts (like 500euros) I can understand how you could end up paying between spread and commission 10%...



> Finally, do expats usually have USD accounts with the UAE banks? That way you can transfer USD from your home country bank to USD account in your UAE bank.


Indeed.

The fact is that if you earn money in AED, and you move them to your USD saving account, you would face the foreign exchange spread at that stage.

If on the other hand you receive money in USD and then want to spend the money back in Dubai, you need to withdraw or transfer to the AED account, so you will face again the spread.

In the worst case you are being hit twice.

So it only makes sense if you want to shift your saving from Europe to Dubai for tax reasons, and you will keep them in that account until you come back to europe (meaning you are never going to change those into AEDs).

Another purpose would be speculation: you could shift your savings in a EUR/GBP local account, because you don't need the money right now, in the hope that the AED comes back at 5 - 5,20 , etc. when you actually need to spend these.
If it goes to 4,20 it would be your business though ;-)


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## Canuck_Sens (Nov 16, 2010)

blue_moon said:


> Thanks for the replies. I been to UAE and I don't have an account there so I don't feel comfortable running around with 25,000 euros in my pocket or stored in my hotel room when I go for the swim.
> 
> So I think what I have to do once I get there start an account, get the IBAN of the account and have my wife transfer 25,000 euros from euro-area bank to that IBAN of the UAE bank and hopefully something close to 120K will show up in my account few days later.


 I think you are good to go. I honestly never lost more than 0.5% in FX transfers to US dollar (after all AED is pegged no wonder), but for more volatile currencies I did. Use 3.675 AED per dollar for comparison purposes. It is a fair rate for spot rates so you know where you stand

If you bank with a bank that has a Branch here even better.


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## Canuck_Sens (Nov 16, 2010)

blue_moon said:


> By the 3% or 1.8% you mean the exchange rate spread, correct?


Use 3.675 AED per dollar as pegged rate. For euro it varies you can use google they offer a good comparison rate. 



blue_moon said:


> Are there any fees for the actual transfer taken by the UAE or European banks? Or that is usually free?


If you transfer within the same bank operating in different countries, you do not have to pay to receive the funds in the UAE, but check the policy of the bank, if you send using a different bank you will be charged fees to receive the funds, such fees varies from bank to bank. HSBC for example do not charge fees to receive funds if the sender is HSBC.

You always pay to send as far as I am concerned



blue_moon said:


> Finally, do expats usually have USD accounts with the UAE banks? That way you can transfer USD from your home country bank to USD account in your UAE bank.


Yes, spot on! but you will prefer leaving it outside of the UAE given the issues that might arise if the holder passes away


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## Nu2Du (Aug 8, 2011)

Sort of on the same point, going from AED to USD with a view to spending the money on day to day living expenses in the USA.
I want to be able to provide safe access to dollars for a teenager going to stay in USA for 9 months.
I am thinking about a Visa card loaded up in UAE but each transaction may cost commission
Any suggestions please??


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## blue_moon (Apr 25, 2012)

Any idea how much do you pay even with HSBC to send the funds? Can we settle that to send the funds is about 25 eur/usd/pounds more or less to an UAE account?

I think to transfer small amounts the transfer fee of around 25eur is outrageous, but to transfer large amounts the transfer fee of around 25eur is too small to matter 

What issues related to the holder of the account passing away? You mean like it is more difficult for the relatives to access the cash? I tho this issues are now easy with the globalization.

P.S. Finally, I assume that to draw money from the ATM with your home country debit/credit card would be an outrageous rip off, am I right?


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## Canuck_Sens (Nov 16, 2010)

blue_moon said:


> Any idea how much do you pay even with HSBC to send the funds? Can we settle that to send the funds is about 25 eur/usd/pounds more or less to an UAE account?


You are in Europe, right ? I don't know you need to visit the website or visit the branch to find out. 

I think to transfer small amounts the transfer fee of around 25eur is outrageous, but to transfer large amounts the transfer fee of around 25eur is too small to matter 



blue_moon said:


> What issues related to the holder of the account passing away? You mean like it is more difficult for the relatives to access the cash? I tho this issues are now easy with the globalization.


 Pretty much. The laws and regulations are different. 



blue_moon said:


> P.S. Finally, I assume that to draw money from the ATM with your home country debit/credit card would be an outrageous rip off, am I right?


 Check your debit card terms and conditions. Some banks charge an extra fee on top of the withdrawal. Besides, there is a daily limit withdrawal on the ATMS that varies. The FX rate might not be bad, but cannot tell. 

Credit card
Why would you use cash advance ? The rates are outrageous across the board does not matter where your card is from


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## Canuck_Sens (Nov 16, 2010)

Nu2Du said:


> Sort of on the same point, going from AED to USD with a view to spending the money on day to day living expenses in the USA.
> I want to be able to provide safe access to dollars for a teenager going to stay in USA for 9 months.
> I am thinking about a Visa card loaded up in UAE but each transaction may cost commission
> Any suggestions please??


 There are some options:

a) Get a prepaid card denominated in USD. The card may be re-loadable. Always go with co-branded prepaid cards (e.g. Visa, Master Card) because if she loses the card they might be able to provide a replacement. ASK to confirm 

Prepaid cards are not free and yes some banks charge several fees. You gotta do some research

b) Some Banks in the UAE issue USD denominated Credit Cards. You can apply for a secured credit card in this case for her.

c) hand her your debit card from UK?; I guess you are not using it here. Although if she loses it is going to be hard to get a new one in her hands.

d) American Express travelers cheques is a good bet. Fully insured and you redeem the face value. Just remember to grab a pen and jot the series down because if you lose, you can call, they will block and get to her new cheques.


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## rsinner (Feb 3, 2009)

Nu2Du said:


> Sort of on the same point, going from AED to USD with a view to spending the money on day to day living expenses in the USA.
> I want to be able to provide safe access to dollars for a teenager going to stay in USA for 9 months.
> I am thinking about a Visa card loaded up in UAE but each transaction may cost commission
> Any suggestions please??


For EUR and CHF I have seen that the best exchange rate is by withdrawing the money from an ATM in the foreign country. I suspect it would be the same for USD as well.
I think a safe bet would be for your daughter to carry your UAE debit card (for card transactions at merchant establishments, the exchange rate is worse). However, there is generally a transaction fee of 20 Dhs or 25 Dhs if you withdraw money from an ATM.

Your pre paid Visa card option is also a pretty good choice.


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## madmaniac (May 3, 2012)

Hi blue_moon!

As I can see that you are German, I would advise you to do the following to make your life very easy concerning money transfer:

Get a bank account in Germany at Deutsche Kreditbank (dkb.de). They are a well established bank and extremely popular with people that travel a lot.
They have this amazing free bank account (free "Girokonto", free "Kreditkarte", no "Gehaltseingang") that gives you a Visa card and allows you to take money with that Visa card from any ATM in the world - without any charges! (this includes Germany btw.  )
You are not even paying the common 1.75% for non-euro regions.
The exchange rate is the official exchange rate, too; so no hidden charges on that one.
With that, I was able to "transfer my money" in an easy and uncomplicated way: I went to the next ATM and withdrew money whenever I needed it. Once I had my bank account established here, I just withdrew everything else, went to the bank here in UAE and cashed it in. It is as simple as that. Ask around with your friends in Germany, I am sure someone will have a DKB account.
The other benefit of having this account is that in the future when you are travelling to other countries you can use your DKB Visa card to take money anywhere, avoiding the crazy fees UAE banks charge you when withdrawing money from foreign ATMs.

Hope this helps - I understand this is a very specific German solution 

Cheers!


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## blue_moon (Apr 25, 2012)

madmaniac said:


> Hi blue_moon!
> 
> As I can see that you are German, I would advise you to do the following to make your life very easy concerning money transfer:
> 
> ...



Is it a DKB Visa "debit card" or "credit card"? If it is a debit card it does sound very simple.


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## madmaniac (May 3, 2012)

blue_moon said:


> Is it a DKB Visa "debit card" or "credit card"? If it is a debit card it does sound very simple.


It is a credit card. you get a "Girokonto" and a "Kreditkartenkonto" when signing up or your account in DKB. What you are doing is that when you sign up for your "Konto", just request a really low or even 0 "Kreditrahmen" for the credit card. Then transfer money from your existing "Girokonto" in whatever bank account it is right now to your DKB-Girokonto and from there, tranfer the money onto your "Kreditkartenkonto". Then it acts exactly like a debit card, where you are just taking the money you have in that account. You even receive 2.something % in interest on it 

Well, in the end it is up to you, just wanted to show you the option I used and that made my life VERY easy when I arrived two months ago. 

Oh, if you decide to sign up, search for some offers on the internet, you can receive a 50 EUR voucher from Amazon. 

Cheers!


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## blue_moon (Apr 25, 2012)

madmaniac said:


> It is a credit card. you get a "Girokonto" and a "Kreditkartenkonto" when signing up or your account in DKB. What you are doing is that when you sign up for your "Konto", just request a really low or even 0 "Kreditrahmen" for the credit card. Then transfer money from your existing "Girokonto" in whatever bank account it is right now to your DKB-Girokonto and from there, tranfer the money onto your "Kreditkartenkonto". Then it acts exactly like a debit card, where you are just taking the money you have in that account. You even receive 2.something % in interest on it
> 
> Well, in the end it is up to you, just wanted to show you the option I used and that made my life VERY easy when I arrived two months ago.
> 
> ...


Do they have a good internet banking? I assume that when I am out of germany it will be more difficult to manage the account.


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## madmaniac (May 3, 2012)

The DKB is an online bank...You should maybe have a look at their website.


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## avallro1 (May 5, 2012)

*Not use HSBC*

My suggestion, if you have to open an account, is not to use HSBC. Even if they are an international banl, in the UAE the customer service is horrible, I had a lot of problem with the limit of credit card (it is very low), the bolced my ATM without asking me, everytime that you call the call center I could never receive an answer





Canuck_Sens said:


> I recommend doing this:
> 
> a) Open a savings account in the UAE (you can as foreigner). You will get an IBAN number. Open in a bank that operates in the UAE and there in your country (e.g. hsbc, barclays)
> 
> ...


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## noisyboy (Nov 13, 2011)

HSBC is pure garbage. I'm closing my account and opening with ENBD!!


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## dubaidreams (Apr 17, 2012)

Hi, does any one know how and what is the
1 easiest way to transfer from UK GBP into AED
2. Best rate of GBP into AED


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## bluebird77 (Apr 10, 2012)

dubaidreams said:


> Hi, does any one know how and what is the
> 1 easiest way to transfer from UK GBP into AED
> 2. Best rate of GBP into AED


Bringing cash is the best option and its safer. You can save almost 0.20 Dhs per pound.


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