Sending money to the UAE for a property purchase

Compare what arrives, and what it costs you

For a UAE property payment, compare the total pounds you must pay to deliver the required UAE dirhams (AED) to the verified recipient. Ask when the money should arrive and how it is protected while the provider holds it. A good headline exchange rate, or a “no fee” offer, does not answer all three questions.

Start with the payment instructions agreed for your purchase: amount, currency, recipient, reference and deadline. Confirm the accepted payment method with the professionals handling the transaction before arranging a currency transfer. This guide covers comparing a GBP-to-AED payment, not the separate ownership and registration checks in Dubai or Abu Dhabi.

Keep transfer costs within your complete property budget. GOV.UK’s overseas-property guidance includes international bank-transfer fees among the costs to discuss in advance.

Ask each provider for the same quote

Give each provider the same AED amount, destination account and intended payment date. Request quotes close together and record when each expires. A comparison loses its meaning if one quote covers a different amount or a different moment in the market.

Check the exchange rate as well as the visible fee. For example, NatWest’s international-payment guidance describes an exchange-rate margin and possible intermediary or receiving-bank deductions, even where no online sending fee applies. That illustrates the questions to ask; it is not a recommendation of that bank or a quote for your payment.

• How many pounds leave my account in total, including every charge you collect?
• How many dirhams should reach the recipient after deductions, and is that amount guaranteed?
• Could another bank deduct a charge? Who covers any shortfall?
• When is the exchange rate fixed, and when does this quote expire?
• When should the recipient have usable funds, and which checks or cut-off times could affect that?
• If the purchase is delayed or cancelled, what can I change and what would it cost?

A worked comparison: the fee is only one part

Suppose you need AED 200,000 to reach the recipient. These two quotes are entirely hypothetical: they are not current rates, typical charges or offers from named providers. Both assume no intermediary or receiving-bank deductions, with the sending fee paid separately in pounds. Figures are rounded to the nearest penny.

Divide the AED amount by the number of dirhams offered for £1, then add the pound fee. Quote A costs £55.16 less overall despite charging a sending fee. If the timing, deductions or service conditions differ, resolve those differences before treating the prices as comparable.

Check the firm behind the quote

The FCA’s payment-provider guidance says to check the company operating behind a brand and its permissions on the Financial Services Register. Match that legal entity to the terms you are being offered; a familiar trading name is not enough.

Also check the contact details. The FCA warns that clone firms copy genuine firms’ names and reference numbers. Follow the contact-checking steps in its guidance, rather than relying on the phone number in an unsolicited message. If an agent or introducer is involved, establish which company actually handles your money.

Save the quote and terms with the firm’s legal name, the date and a contact you have checked independently. A rate comparison is much more useful when you can identify who is responsible for carrying out the payment.

Understand how your money is protected

According to the FCA’s explanation of provider failure, money held with a non-bank payment provider is not covered by the Financial Services Compensation Scheme (FSCS) if that provider fails. Authorised payment institutions and electronic-money institutions instead use safeguarding: separating customer funds or protecting them through insurance or a similar guarantee. Recovery can take time and may be reduced by administration costs. Small payment institutions do not have to safeguard funds.

Ask which protection applies to your payment, which firm holds the funds and for how long. Do not read “FCA regulated” as a promise that money will be available immediately if something goes wrong. Resolve this before sending money ahead of a property deadline.

Work backwards from the arrival deadline

Put the date funds must be received beside the date you plan to send them. Ask the provider what it needs before accepting your payment, including identity or source-of-funds documents, and whether your UK bank has a transfer limit to arrange in advance. Confirm the relevant cut-off times, working days and any allowance for checks.

Avoid treating an estimated arrival time as a contractual guarantee. Ask who will trace a delayed payment and who you should contact on the property side. Keep the exchange confirmation, payment reference and recipient’s receipt together; an instruction marked “sent” is not the same evidence as confirmation of the amount received.

For several instalments, repeat the exercise for each due date. Today’s quote does not fix the cost of later payments. If you are considering an agreement to fix a future exchange rate, get advice on its funding, cancellation and other obligations before committing.

Keep the payment and property checks together

Checking a transfer provider does not verify the seller’s payment instructions. For a Dubai developer purchase, use our project and escrow checklist alongside the quote. For an Abu Dhabi purchase, start with the separate Abu Dhabi buying guide and confirm the arrangements for that transaction. Recheck any change of receiving account through an independently verified contact.

Still comparing homes and payment plans? Tell us your budget and timing. My Dubai Residence helps with property research and introductions. Your payment provider and transaction advisers should confirm how the money moves and what the purchase requires.