UK headquartered TransferWise is to target the NRI and other expat groupings in the UAE region after receiving the green light from the Abu Dhabi Global Market Financial (ADGM) Services Regulatory Authority to operate money services.
Its thirteenth office to date across the world, the ADGM base will lead to the first product launch in 2020, the company said in a statement on 22 October.
Kristo Käärmann, CEO and co-founder of TransferWise said: “Money transfers from AED have long been one of our most wished for currencies, so we always knew we’d begin our expansion into the Middle East in the Emirates.
“The latest World Bank data shows an uptick in the cost of sending money from the Middle East, and there’s such a strong expat community locally who desperately need a better way to manage their money across borders.”
He added: “TransferWise will soon be able to help those living and working in the Emirates by bringing innovation and competition to the market, resulting in lower prices and a better experience for customers.”
A total of AED169.2bn was sent from the UAE last year, according to the Central Bank’s 2018 annual report. Global remittances totalled $689bn (AED2.5tn) in 2018, according to World Bank data.
In excess of 1,600 currency routes
TransferWise offers over 1,600 currency routes and 49 currencies, claiming that money transfers are up to eight times cheaper than the banks in its biggest markets.
It has 6 million customers worldwide, over 1,800 staff and further states that $5bn in customer payments are processed every month, domestically & cross-border.
TransferWise reported revenues of £179m in the fiscal year ending March 2019, and net profits of £10.3m.
Co-founded by Taavet Hinrikus and Kristo Käärmann, TransferWise launched in 2011 and raised $689m in primary and secondary funding from investors such as Lead Edge, Lone Pine, Vitruvian, IVP, Merian Global Investors, Andreessen Horowitz, Richard Branson, Valar Ventures and Max Levchin from PayPal.
