When people first hear the word “hawala ,” it sounds mysterious and even a little suspicious. It seems to refer to some kind of unofficial money transfer scheme. But if you look deeper, it becomes clear: hawala is not only one of the oldest methods of international transfers, but also a systеm trusted by thousands of people around the world.
Hawala is especially popular on the Russia-UAE and Ukraine-UAE routes , where transfers are needed quickly, conveniently, and without unnecessary formalities. And contrary to popular belief, hawala has proven to be much safer than many people think.
How hawala works in simple terms
The hawala mechanism is extremely simple:
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A person in one country transfers money to an intermediary (for example, in Moscow or Kyiv).
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The intermediary contacts his partner in another country (for example, in Dubai).
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The recipient in the UAE comes to the office or meets with a trusted person and receives the money in dirhams.
There are no actual cash transfers across borders—everything is built on trust and mutual settlements between intermediaries.
Why do people choose hawala?
In practice, hawala has become a standard tool for thousands of individuals and companies. The reasons are obvious:
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Speed. You can receive money within an hour.
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Flexibility. Rubles or hryvnias can be exchanged immediately for dirhams.
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Minimal documentation. No need to collect certificates or proof of origin of funds.
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Convenience. The process is clear and transparent: deposit money in one country and receive it in another.
It’s no surprise that this method is used by individuals for personal transfers, entrepreneurs, and investors when purchasing real estate in the UAE.
What makes hawala safe?
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The reputation of intermediaries.
In this systеm, everything is based on trust. Intermediaries value their reputation: one violation and they lose their clients forever. -
Code words and identification.
The recipient can’t simply take the money. Most often, a code or pre-agreed phrase is used, along with passport information. -
Mutual settlements between intermediaries.
Hawala operates through a network of mutual debt obligations. Intermediaries constantly balance each other to eliminate the risk of default. -
Trusted channels.
People transfer money only to companies or intermediaries that have been in business for a long time and have proven their reliability.
The myth of hawala’s “dubiousness”
Many people think that if a transfer doesn’t go through a bank, it’s risky. But in fact, hawala has survived for hundreds of years precisely because it operates reliably. In Dubai, for example, it’s a completely common tool: huge sums of money are transferred through hawala every day, and it’s used not only by private clients but also by businesses.
In fact, hawala is n’t an alternative to banking , but a convenient supplement. When speed and simplicity are needed, hawala is chosen. When it comes to large official transactions, a bank is involved.
Why hawala is safer than it seems
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She is trusted by thousands of people every day.
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It is time-tested – the systеm has existed for centuries.
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Intermediaries value their reputation and cannot afford to deceive clients.
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Hawala has already become a common and widespread method of transferring funds in the UAE , especially for those working with rubles and hryvnias.
Result
Hawala isn’t about risk, but about convenience and trust . If you’re transferring money to the UAE, this method allows you to quickly and securely receive cash in dirhams or dollars. That’s why thousands of people have long made hawala their primary means of payment.
