Money transfers to the UAE are one of the most common requests for residents of Russia and Ukraine. Many are faced with a choice: using a traditional bank transfer or relying on the hawala systеm .
At first glance, both options lead to the same goal—the money should end up in Dubai. But in practice, the differences are colossal: in terms of speed, paperwork, and conditions.
What is a bank transfer?
A classic bank transfer is an official transaction through international systems (for example, SWIFT ).
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Money is debited from an account in Russia or Ukraine.
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They pass through a chain of correspondent banks.
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They are deposited into the recipient’s account in the UAE.
Peculiarities:
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translation period: from 2–3 days to a week;
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commissions: from 1 to 5%, plus fixed fees;
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documents: the bank may request confirmation of the origin of funds, especially for large amounts;
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Strict currency restrictions (not all banks are willing to convert rubles or hryvnias directly into dirhams).
What is hawala?
Hawala is a trusted money transfer systеm operating through a network of intermediaries. It has existed for hundreds of years and is widely used in the Middle East, including the UAE.
The scheme is simple:
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the client gives money to an intermediary in his country (rubles or hryvnia);
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The intermediary’s partner in Dubai issues the recipient the equivalent in dirhams or dollars.
Peculiarities:
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translation speed: from 30 minutes to several hours;
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commissions: usually lower than bank fees;
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documents: minimum formalities, a passport and a code phrase are sufficient;
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Flexibility: you can exchange currencies that banks don’t always accept (for example, rubles → dirhams).
The main difference between hawala and a bank
| Criterion | Bank transfer | Havala |
|---|---|---|
| Speed | 2–7 days | from 30 minutes |
| Commission | 1–5% + fees | usually lower |
| Documents | confirmations, certificates | minimum of formalities |
| Currency | only official (USD, EUR, AED) | any (rubles, hryvnias, dollars, dirhams) |
| Convenience | I need a safe deposit box or account | translation “from hand to hand” |
| Popularity in the UAE | standard for companies | a familiar tool for individuals and investors |
Why is hawala so popular in the UAE?
In Dubai and other emirates, hawala has long been a part of financial culture. It is used by:
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foreign investors who transfer money to purchase real estate;
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entrepreneurs making payments to partners;
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individuals sending funds to relatives.
In fact, hawala is n’t an alternative to banking , but a convenient supplement. When formality is important and documents are needed, a bank is used. When speed and flexibility are important, hawala is chosen.
Result
The difference between a bank transfer and hawala in the UAE is clear. Bank transfers are formal, time-consuming, and require paperwork. Hawala is fast, flexible, and convenient. Therefore, many clients combine the two: large transactions are processed through the bank (for example, through a check manager), and everyday transfers are handled through hawala.
