When You Still Need Cash in UAE

Picture this: You're standing at a parking machine at 11 PM, your car blocked in, and the machine only takes coins. Your phone has 3% battery, there's no ATM in sight, and you've been proudly cashless for two weeks straight.

That was me, Al Barsha, March 2022. A security guard eventually helped me out with two dirhams. I keep small bills on me at all times now.

The Honest Truth About Cash in UAE

UAE is overwhelmingly a card-friendly country. You could go weeks paying only by card or phone. But "could" and "should" are different things. Cash hasn't disappeared here - it's just retreated to specific situations that will catch you off guard if you're not prepared.

I now carry AED 100-200 in mixed bills everywhere. Not because I need it often, but because when I need it, I really need it.

Places That Still Prefer or Require Cash

The Souks and Traditional Markets

Gold Souk in Deira? Many shops technically accept cards but will give you a better price for cash. Same goes for the Textile Souk and Spice Souk. It's not that cards don't work - it's that cash removes the card processing fee from their margins, so they're more flexible on price.

I bought a gold chain for my mom last Eid. The quoted price was AED 1,850. When I asked about cash discount, it dropped to AED 1,720. That's AED 130 saved by having dirhams on me.

Small Cafeterias and Street Food

The best biryani I've ever had costs AED 15 from a tiny place in Karama. They don't have a card machine. Neither does the juice shop next door, or the bakery across the street that sells the flakiest croissants I've found in Dubai.

These aren't fancy establishments - they're the hidden gems that make living here special. And they run on cash.

The unwritten rule: if a meal costs under AED 25 and the menu is laminated, bring cash.

Some Parking Situations

RTA has done a fantastic job upgrading parking systems. Most now accept cards or can be paid via app. But older machines in residential areas, some private parking lots, and a few public parking zones in Sharjah and Ajman still require coins or small notes.

The parking app (Mawaqif in Abu Dhabi, RTA Smart Drive in Dubai) mostly solves this, but not always. There are dead zones where phone signal is weak, apps crash, and you're left needing physical dirhams.

Tips and Service Workers

This is a big one. Tipping culture exists in UAE, and while it's not mandatory like in the US, it's appreciated and expected in certain contexts:

• Restaurants - 10-15% is standard if service charge isn't included
• Valets - AED 5-10 per car
• Delivery drivers - AED 5-10 depending on distance
• Hotel staff - AED 5-20 for porters, housekeeping
• Salon/spa staff - 10-15% of service

You can't tip via card in most situations. These workers often depend on cash tips for a meaningful portion of their income. Keep AED 5, 10, and 20 notes on hand.

Where to Get Cash (Without Getting Ripped Off)

Best Option: UAE Bank ATMs

If you have a local account, this is a non-issue. If you're using a foreign card, stick to ATMs from major banks:

• Emirates NBD - Most common, found everywhere
• ADCB - Reliable, good availability
• First Abu Dhabi Bank (FAB) - Widely available, especially in Abu Dhabi
• Mashreq - Good for larger withdrawals

These ATMs usually charge AED 10-15 for foreign card withdrawals. Your bank may add their own fee. But the exchange rate is typically reasonable.

Decent Option: Exchange Houses

Al Ansari Exchange, UAE Exchange, and Al Rostamani Exchange are the main players. Rates are competitive for major currencies, and they're everywhere - malls, metro stations, neighborhoods.

I've compared rates across exchanges, and the difference is usually minimal (1-2 fils per dirham). What matters more is avoiding the bad options below.

Avoid: Airport Exchanges

Travelex and the exchange counters at Dubai International will take 4-7% of your money in bad rates and fees. I've seen it firsthand when friends changed money there.

If you absolutely must exchange at the airport, take out just enough to get to the city (AED 100-200 max) and handle the rest elsewhere.

Avoid: Hotel Exchanges

Hotels offer currency exchange as a "convenience." That convenience costs you 3-5% typically. Use the ATM in the lobby instead of the front desk exchange.

How Much Cash to Actually Carry

After three years of refinement, here's my formula:

For Tourists (1-2 Week Visit)

Bring or withdraw AED 500-700 total. Keep AED 100-150 in your wallet, rest in the hotel safe. You won't need more unless you're planning to haggle at souks or eat exclusively at street food spots.

For New Residents

Get a local bank account and debit card as soon as possible. Until then, have AED 1,000-1,500 available for the random expenses that pop up - deposits, visa fees that require cash, furniture delivery tips, etc.

For Established Residents (Like Me)

I keep AED 200 in my wallet (two 50s, five 20s) and AED 300 at home. This covers 99% of situations. The last 1% - like when I wanted to buy a rug in Sharjah and the seller only took cash - I handle with an ATM trip.

Denomination Tips

UAE has these note denominations: 5, 10, 20, 50, 100, 200, 500, 1000 dirhams.

For everyday use, you want:

• AED 50 notes - Most useful, accepted everywhere
• AED 20 notes - Perfect for tips and small purchases
• AED 10 notes - Good for parking, tips
• AED 5 notes and coins - Essential for old parking machines, small tips

Avoid walking around with AED 500 or 1000 notes. Many small shops won't have change, and it's awkward asking a shawarma vendor to break a thousand.

The Bottom Line

Cash isn't dead in UAE - it's just not the default anymore. Treat it as a backup payment method that you'll use occasionally but definitely need. The amount to carry is less about "just in case" and more about practical situations that genuinely require it.

That parking machine at 11 PM taught me a lesson. Now I never leave home without at least AED 50 in small bills. Three years later, I've needed it dozens of times. Each time, I'm grateful past-me learned that lesson the hard way.