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United Arab Emirates (Dubai and Abu Dhabi) Travel Money - Best Options for Kiwis 2024

Our guide outlines everything you need to know about spending money in Dubai, Abu Dhabi and any other Emirate, focusing specifically on cash vs debit and credit cards vs travel money cards.
Updated 21 August 2024
Summary:
  • With daily flights from Auckland and Christchurch on Emirates, Dubai has become a popular transit destination for New Zealanders en route to Europe, Africa, and other parts of the Middle East. However, the cost of visiting can be high, given the price of hotels, alcohol, and shopping.
  • Our guide on travel money focuses on Dubai but also applies to Abu Dhabi and any of the other Emirates, such as Al-Ain and Sharjah.
  • Dubai residents mostly pay by card for purchases, and businesses big and small accept cards - using cash is less and less common. However, it's useful to have some notes and coins to cover tips and small items, or if you feel as if you need it should a card (or two) get misplaced.
  • The official currency of the United Arab Emirates is the Dirham, often represented as AED. Over the past year, the exchange rate for NZD to AED has fluctuated, but on average, 1 NZD hovers between 2.10 and 2.50 AED. As the NZD weakens, stopping or visiting Dubai becomes more expensive, and vice versa.
  • Most New Zealanders will pre-book and/or prepay hotels, but on-the-ground costs can be much more than what you've prepaid. For this reason, having the most economical and convenient payment method for Dubai makes every dollar go further.
  • We are confident in suggesting that Dubai is increasingly cashless and that cards are widely preferred as the method of payment. Any card-accepting business will take a Mastercard, Visa, and, in many cases, AMEX, too.

Our guide explains everything you need to know to make travelling in Dubai a cost-effective experience. We cover:
Advertising disclosure: We may receive a payment if you sign up for a card via MoneyHub - please read our advertising policy for more details.

Related guide: The Best Travel Money Cards

Video Overview: In the video below, MoneyHub Founder outlines our guide to best explain must-know facts and how to avoid the traps of forex when you're in Dubai or the wider United Arab Emirates:

Our Top-Rated Travel Money Card - The Wise Debit Card

Christopher Walsh
MoneyHub Founder (and Frequent User of Wise)
We like the Wise Debit Card because it lets you:
  1. Get the best exchange rates out of any card on the market in New Zealand, including AED.
  2. Spend abroad without hidden fees, and track all your spending through their app. 
  3. Convert and hold 54 currencies (Wise uses the real exchange rate to convert). You can store AED in a wallet, meaning you can buy AED in advance and lock in the rate.
  4. Go 'cardless' by connecting your Wise card to Apple Pay or Google Pay
  5. Order the card with a low one-off $14 card issue fee and set it up in minutes via the Wise website or app.

Our view:
  • The Wise Debit Card has no tricky fees, and is years ahead of all the other traditional travel money cards.
  • You will convert at the best exchange rates and pay very low fees on each transaction. Best of all, it's easy to use and won't confuse you the way traditional travel money cards might.
  • There may be fees for anyone who relies on physical cash - you can make two withdrawals of up to NZ$350/month in total (or the equivalent foreign currency) without any fees. However, after NZ$350, you will pay ATM fees (NZ$1.50/withdrawal) and a 1.75% commission. These fees are not charged when you use the card to pay online or in-store.
  • We don't have much time for the rest of the travel money cards available and can't offer a "runner up", which is unusual in most comparisons on MoneyHub. In this case, the other options don't offer anything as innovative and cost-effective as Wise does.

Option 1 - Using Cash in Dubai

If you want physical AED notes before leaving New Zealand for Dubai, there are a few options. Most NZ banks have stopped offering FX cash services; Westpac is currently the only provider, but it doesn't offer AED.

However, you can use a Beaurau de Change/Forex Booth. The primary operators are travel money booths like Travelex and No1 Currency. However, the FX rates are well below mid-market rates per our video research summary below, meaning you'll get less AED for your NZD than you otherwise would if you withdrew AED from an ATM once you're in Dubai or anywhere in the United Arab Emirates.

Getting AED Cash When You Arrive in Dubai:
If you want to have physical Dihram on hand for your arrival, there are ATMs in Dubai Airport's arrival areas and concourses. The ATM fee you'll pay to withdraw money depends on your bank; for example, Kiwibank will charge NZ$6, while ANZ is free. Any ATM fee will be deducted from your bank account when you withdraw.  

Our View: Getting physical AED before you get to Dubai is expensive. Our review of  Travelex and No1 Currency suggests their rates are around 5% to 7% lower than the mid-market rate. No bank offers FX rates as favourable as those from Wise. In practical terms, if you use Wise to withdraw money from an ATM in Dubai, you'll get an extra AED 5 to AED 14 for every NZ$100 you take out (compared to changing it with the FX booths), thanks to Wise's superior rates and lower fees.

Bonus: The Wise Debit Card offers withdrawals of up to NZ$350 per month without charging a transaction fee, meaning you can withdraw up to around AED 750 in cash without paying FX transaction fees (after NZ$350, it's a flat 1.75% fee).

Know This: If you make a one-off withdrawal of the equivalent of NZ$1,000 outside of New Zealand, Wise will charge you fees on the $650, whereas the first $350 per month is free.

Using AED Cash - Pros and Cons

Pros:
  • Universal Acceptance: While cash is always king, Dubai is mostly cashless anywhere outside of a non-tourist souq (market), bus or food stand. Debit and credit cards, alongside Apple Pay and Google Pay, are most commonly used.
  • Immediate Transactions: There's no risk of card machine issues, declined transactions or fraud on your card.

Cons:
  • Safety Concerns: Carrying large amounts poses a risk, especially in crowded areas. However, you can always leave a portion of AED in a hotel room safe or keep it somewhere secure on you.
  • Airport Exchange Woes: While convenient, exchanging NZD to AED at the airport can be costly if you use a high-fee debit card at an ATM or get a bad rate at the Forex kiosk in New Zealand or Dubai (when you arrive). This is because rates are often marked up, and there might be hidden commission fees, reducing the amount of AED you receive for every NZD you change.

If I have spare Dihram on the last day I'm in Dubai, what should I do with them?

  1. Spare notes and coins have a habit of gathering dust back in New Zealand, and it may be some time before you visit Dubai again. The best way to avoid having leftover currency is to spend the notes and coins on your last day; many people make a part payment alongside their card to settle a final bill, for example, a lunch or dinner, before they fly out. Or you can put the cash towards the hotel bill if you're settling the bill at the end of your stay.
  2. Converting your AED back to NZD is a convenient option. You can do this at Dubai Airport or when you return to New Zealand. While the AED/NZD rate at an FX kiosk may not be the best, having NZD in hand for your next trip is more useful than AED notes that sit there, making it a cost worth incurring.
  3. Lastly, if you know someone who will be visiting Dubai or anywhere in the Emirates in the future, giving them AED notes and coins is a nice present they'll appreciate.

Option 2 - Using NZ-Issued Debit and Credit Cards in Dubai

Many New Zealanders use debit and/or credit cards when in Dubai.​

What Do New Zealand Banks Charge for Card Use? Most banks impose foreign transaction fees ranging from 0% to 3.5% of the total transaction amount. This fee is atop the exchange rate margin the bank adds to the daily exchange rate. Some banks might also charge a flat fee for overseas ATM withdrawals. 

For example, if you're using an ANZ Visa Debit or credit card, you'd typically incur a fee of 1.30% of the transaction amount when you make a purchase overseas per the ANZ's website while Kiwbank's debit cards will charge you 2.50%. The Co-operative Bank goes higher with a 2.60% fee. If you withdraw from an ATM, you will usually pay an additional overseas ATM fee. 

More details: Detailed bank charges are in our Debit and Credit Cards FX Fee comparison.

Using NZ Bank Cards - Pros and Cons

Pros:
  1. Convenience: Your NZ debit or credit card (and travel money card) is versatile and widely accepted in almost every Emirati business. Whether shopping, paying for hotel stays, or dining out, the card covers you.
  2. Tracking: One underrated advantage is the ability to track your expenses. With mobile banking apps, you can keep tabs on your spending, set budgets, and even receive instant transaction alerts. Dubai is likely going to be more expensive than New Zealand and keeping track of your spending is essential.

Cons:
  1. Unpleasant Surprises: The cost of convenience can be high, and what NZ banks charge their customers to use a card overseas varies. The combined effect of foreign transaction fees and the bank's exchange rate margin can result in you paying significantly more than expected. Make sure you know the fees you'll be charged by reading your bank's website - our summary of overseas debit and credit card fees explains more.
  2. Dynamic Currency Conversion (DCC) Pitfalls: Sometimes you are offered to pay in NZD instead of AED at card terminals in Dubai. It might seem tempting to accept the NZD amount, but this service, called DCC, will almost always result in higher costs as the provider takes a margin, and the exchange rates used are often less favourable, and there might be hidden fees as well. When you agree to pay in AED, you'll always get the bank or travel money card's best FX rate. 
  3. Potential Card Issues: There's always a risk of your card being declined, skimmed, or even captured by ATMs. While these issues are rare and Dubai is a safe and secure country with strict laws, a backup card is always good idea. 

Our View:
  • While using a New Zealand bank debit or credit card in Dubai offers undeniable convenience, too many New Zealanders pay far too much in bank fees.
  • It's not unreasonable to spend around NZ$1,000 for a 2-3 day Dubai stopover by the time you add in hotels, eating and experiences, which makes it an expensive place to be. Paying $25+ in bank fees and getting poor-value NZD/AED rates during the week is best avoided. Some banks are fair, but many fee-gauge and charge you a small (but still hefty) percentage on every time your card is used. We don't think paying the bank 2.50%+ on every dollar you spend is a good use of money. 
  • Please double-check the fees associated with your specific bank and consider alternative options like travel-specific or multi-currency cards that offer better rates and fewer fees.

Related guide: The Best Travel Money Cards

Option 3 - Using Travel Money Cards (Including the Wise Debit Card) in Dubai

Know This First: Our review and comparison of travel money cards confirms Wise as the best option, with no card a close second. This includes options from Travelex, OneSmart and Cash Passport. For this reason, we've focused on Wise for this section to explain what you need to know.

Getting Familiar with the Wise Debit Card Usage in Dubai
Wise offers a travel money card that lets you have multiple currency wallets and comes with a physical and digital debit card. This includes AED, meaning you can buy AED in advance and store it in an AED digital wallet. If you prefer to load NZD rather than lock in an AED forex rate, you can do that too. This means when you spend in AED, transactions are converted into NZD and deducted from your balance at the forex rate at the time of purchase.

Our View: If you're only in Dubai for a short time, en route to Europe, Africa or the Middle East, it's popular to keep an NZD balance on Wise. This way, you avoid locking in an exchange rate and don't need to exchange unspent AED back into NZD or any other currency.

What Does Wise Charge for Card Use? Wise prides itself on transparent fees and real exchange rates. They charge a small conversion fee (around 1%) when you convert your money to AED, which is typically much lower than traditional banks, with the additional benefit of leading FX rates.
​
ATM withdrawals are free up to a certain limit (NZ$350 per month), after which a 1.75% fee is applied. However, if you make a one-off withdrawal of say, the equivalent of NZ$1,000 while outside of New Zealand, Wise will charge you fees on the $650, whereas the first $350 per month is free.

Using the Wise Debit Card - Pros and Cons

Pros:
  • Acceptance: You can use a Wise card anywhere Visa or Mastercard are accepted (which is almost everywhere in Dubai).
  • Competitive Rates: Wise uses the real exchange rate (the one you see on Google) and thus avoids the typical markup that banks add.
  • Multi-currency: The Wise borderless account lets you hold and manage money in multiple currencies (including AED), which can be extremely useful when travelling beyond Dubai, which is common for anyone visiting for a short time.
  • Transparent Fees: You always know what you're being charged, with no hidden costs. 
  • Instant Notifications: The Wise app notifies you immediately after every transaction, helping you keep track of your spending.

Cons:
  • ATM Withdrawal Limit: While they offer free ATM withdrawals, it's only up to a certain limit. Beyond that, there's a 1.75% fee.
  • Not a Credit Card: The Wise card is a debit card, meaning you can't spend money you don't have - we argue this is also a positive feature to avoid holiday debt.

​Our View: The Wise debit card, with its transparent fee structure and competitive exchange rates, is a value-delivering choice for many travellers in Dubai. Combining the card with some cash will ensure you're prepared for all situations, and with zero FX fees on withdrawals up to NZ$350 per month (around AED 750), the card delivers on value.

Related guide: The Best Travel Money Cards

Our Top-Rated Travel Money Card - The Wise Debit Card

Christopher Walsh
MoneyHub Founder (and Frequent User of Wise)
We like the Wise Debit Card because it lets you:
  1. Get the best exchange rates out of any card on the market in New Zealand, including AED.
  2. Spend abroad without hidden fees, and track all your spending through their app. 
  3. Convert and hold 54 currencies (Wise uses the real exchange rate to convert). You can store AED in a wallet, meaning you can buy AED in advance and lock in the rate.
  4. Go 'cardless' by connecting your Wise card to Apple Pay or Google Pay
  5. Order the card with a low one-off $14 card issue fee and set it up in minutes via the Wise website or app.

Our view:
  • The Wise Debit Card has no tricky fees, and is years ahead of all the other traditional travel money cards.
  • You will convert at the best exchange rates and pay very low fees on each transaction. Best of all, it's easy to use and won't confuse you the way traditional travel money cards might.
  • There may be fees for anyone who relies on physical cash - you can make two withdrawals of up to NZ$350/month in total (or the equivalent foreign currency) without any fees. However, after NZ$350, you will pay ATM fees (NZ$1.50/withdrawal) and a 1.75% commission. These fees are not charged when you use the card to pay online or in-store.
  • We don't have much time for the rest of the travel money cards available and can't offer a "runner up", which is unusual in most comparisons on MoneyHub. In this case, the other options don't offer anything as innovative and cost-effective as Wise does.

Must-Know Tips for Using Money in Dubai and the wider United Arab Emirates

Guard Your Money and Financial Information

Dubai is very safe and has a very low crime rate thanks to strict laws. That being said, it's always good to be careful - we suggest avoiding keeping all your money and cards in one place. Hotel safes or other secure spots can be useful for storing backups.

Cards Are Common, But Cash Still Has Its Place (For Now)

Dubai has, for tourists, arguably become functionally cashless, but there are still places where cash is accepted. Credit and debit cards are prevalent; smaller shops and some taxis may say they don't take cards, but rideshare apps solve any transport issues.

Consider Mobile Payment Options

Dubai has widely adopted mobile payment systems like Apple Pay and Google Pay. These options can be convenient, especially if linked to a card like the Wise Debit Card.

Keep Track of Your Expenditures

It's easy to lose track of spending, and Dubai is an expensive place for a budget blowout given the temptations. To avoid this, we suggest considering an app like Wise, which gives you instant payment notifications (when you're on WIFI or data), which helps you stay aware of your spending.

NZD to AED Conversion and Spending AED - Frequently Asked Questions

How does the NZD usually fare against the AED?

The NZD-AED exchange rate can fluctuate based on economic factors. Since 2020, 1 NZD has been worth between 2.10 and 2.50 AED.

Can I use my travel money card, NZ debit card or credit card everywhere in Dubai?

Yes - Dubai businesses widely accept card payments, alongside Apple Pay, Google Pay and cash. Because Dubai is something of an "open zone", meaning citizens of almost every country can visit visa-free, payment with a range of cards is essential to make travel frictionless.

Is Dubai expensive for NZ tourists?

It can be, depending on what you do, but by planning ahead you can save significantly. The NZD buys around 2.10 and 2.50 AED, and everything will be priced in AED. Dubai has a lot of hotels to suit all budgets, and a metro system that connects all the must-see places. Alcohol is very expensive, even compared to New Zealand.

What's the best way to get the most AED for my NZD?

Services like Wise can offer better exchange rates than traditional banks or airport exchange counters. The rates are better, the fees are lower, and there's an app to track all spending so you know exactly what you paid for something.

Our Conclusion

For New Zealanders travelling to the United Arab Emirates, saving on FX fees and bad rates is essential, even if the stay is short (e.g. a 2-3 day stopover). While the exchange rate does see some movement, on average, one NZ dollar generally converts to between 2.10 and 2.50 United Arab Emirates Dihrams throughout the year.
In terms of accessing AED:
  • Cash: While universally accepted, the trend in Dubai is leaning towards cashless transactions. Getting AED in advance at Forex kiosks in Auckland or Christchurch or upon arrival at Dubai Airport might seem convenient. Still, the rates are typically less favourable than those offered by banks or platforms like Wise.
  • We often see the rates offered to travellers when passing through these airports, and the rates are arguably terrible. As an alternative, the Wise Debit Card is particularly advantageous, providing superior rates and free withdrawals of up to NZ$350 monthly.
  • NZ Bank Cards: These cards have the advantage of universal acceptance in Dubai. However, using them can incur a combination of fees, from foreign transaction fees to exchange rate margins and overseas ATM charges.
  • Wise Debit Card: The Wise Debit Card is a clear, multi-currency solution that aligns with Dubai's growing cashless preference. It offers competitive exchange rates and minimal fees, making it a good fit for the city. For those who still need cash, the card allows free withdrawals of up to NZ$350 per month without incurring FX conversion fees.

Our View: With cards being so widely accepted in Dubai , cash is becoming less necessary. We strongly suggest considering the Wise Debit Card as your primary spending tool to maximise your spending power. It offers great rates and minimal fees, allowing you to make the most of your money. You can then use your NZ-issued debit card and/or credit card as a backup. If you do need cash, Wise allows free withdrawals of up to around AED 750 a month.
Related Guides:
Country-Specific Travel Money Guides: