In an age dominated by digital wallets, credit cards, and contactless payments, a surprising number of expatriates in the UAE are turning back to basics—using cash for their daily expenses. While the UAE is often seen as a leader in fintech adoption, this growing cash-only trend among certain expat groups is raising eyebrows and sparking conversations around financial control, budgeting, and lifestyle changes.
For many of these expats, the decision isn’t about resisting technology. Instead, it’s a conscious move to manage spending more effectively, avoid debt, and regain a sense of financial discipline.
The rising cost of living in the UAE has been one of the key motivators behind the shift. From rent increases to fluctuating grocery prices, many residents—particularly those on fixed or modest incomes—are feeling the pinch. Using cash gives them a clearer, more immediate sense of how much they’re spending. With card transactions, it’s easy to lose track. But when money physically leaves your wallet, the impact is more tangible.
Some expats have even started adopting budgeting methods like the envelope system, where cash is divided into separate envelopes for categories such as groceries, transport, and entertainment. Once the money in an envelope is gone, no more spending is allowed in that category until the next cycle. This old-school approach is proving effective for people trying to stick to a strict budget, especially families looking to cut unnecessary expenses.
Another reason behind the cash-only trend is the desire to avoid falling into the credit card debt trap. Many expats admit they used to rely heavily on cards, often paying only the minimum due, which led to mounting interest and financial stress. By cutting up their cards or using them only for emergencies, they’re finding more peace of mind and financial clarity.
Moreover, cash transactions eliminate the risk of hidden fees or unexpected charges that sometimes come with digital payments. There’s also a psychological benefit: people tend to spend less when they’re handling physical money, as it creates a sense of scarcity and accountability.
Security is another factor that can’t be ignored. While digital fraud remains relatively low in the UAE, it still exists. A handful of expats, particularly older residents or those from cash-centric cultures, feel more comfortable using cash as a means to protect themselves from potential scams or data breaches.
However, the shift to cash-only spending isn’t without its challenges. Not all businesses in the UAE accept cash, especially in urban centers where contactless payment is the norm. Carrying large amounts of cash also comes with its own risks. Yet, for many, the trade-off is worth it.
Ultimately, this trend reveals a deeper sentiment among some expats—a desire for more control in uncertain economic times. Whether it’s about avoiding debt, managing rising expenses, or simply fostering better money habits, the move toward cash-only living shows that sometimes, going back to basics is the smartest way forward.
