UAE’s Al Ansari in profit drop as remittance scene gets more competitive

Dubai: The operator of the currency exchange house, Al Ansari Financial Services has seen net profits drop to Dh405.8 million from Dh495.18 million as the remittance business turns extra competitive.

Income for the DFM-listed company came to Dh1.18 billion from Dh1.16 billion, with Al Ansari looking to develop its presence outside of the UAE too.

While remittance volumes continue to grow, with expat residents making gains from a dollar surge, the number of platforms that offer opportunities to send money keeps growing.

Fintechs are aggressively courting expats on their currency remittance needs through targeted promotions, including zero fee transactions. This year will further see market shares held by currency exchange houses, banks and fintechs turn even more fluid.

“By now, most UAE residents will have 3-4 options at hand to decide which one to use for money transfer,” said a market analyst. “Sticking to any one channel or service provider is increasingly difficult.

“There is a pushback if customers see there is a higher fee involved.”

The Al Ansari stock is at Dh0.98 against the Dh1.03 IPO price.