| Margin on the rate | Cost on a AED 1,000,000 payment |
|---|---|
| 0.25% | AED 2,500 |
| 0.5% | AED 5,000 |
| 1% | AED 10,000 |
| 2% | AED 20,000 |
How to check your own cost: on the day of the transfer, compare the rate you are quoted with the mid-market rate shown on a reputable rate site. The gap, plus any fee, is what you are paying.
Paying in US dollars. The dirham is pegged to the US dollar at about 3.6725 AED per USD. So the exchange rate itself does not move. You still pay the margin, but you do not take rate risk. The dirham peg explained.
Paying in another currency. The rate moves daily. Between the day you reserve a property and the day you pay the balance, the cost in your own currency can rise or fall.
Paying in instalments over years. Off-plan payment plans spread the exposure across many payments. If you will pay in a currency other than dollars, you can agree a rate for a future payment with a forward contract, which fixes the rate today for a payment you make later. Forward contracts for property payments.
Property income and proceeds often need to travel out of the UAE.