The Central Bank of the United Arab Emirates has officially approved the UK-based money transfer service Wise to operate in the country.
Headquartered in London, Wise is a financial technology firm that facilitates money transfers and storage. It serves around 15 million customers globally and handles nearly $50 billion every quarter.
With regulatory approval now secured, Wise can offer its transfer and storage services within the UAE.
Shares in Wise have declined by approximately 8 percent so far this year.
Each year, individuals and businesses in the UAE transfer roughly $44 billion across borders, highlighting the country’s remittance market as one of the most significant worldwide.
In 2023, sending remittances over $200 cost an average of 6.4 percent, according to the Migration Data Portal.
Wise and other fintech companies are competing to offer similar services at lower costs within the UAE’s highly competitive remittance market.
Earlier this year, European digital bank Revolut also obtained a UAE licence, with analysts forecasting that it could significantly impact the country’s remittance sector.
Local companies such as Careem have introduced their own remittance services, while cryptocurrency firm Circle is exploring ways for individuals in the UAE to send remittances using its stablecoin, USDC.
