How Dubai’s travel wave is boosting the forex market

Dubai is popular globally for several things—its luxurious lifestyle, booming real estate market, and iconic architecture. But what truly makes it a hub for tourists worldwide is its annual and vibrant calendar of festivals. From world-class shopping festivals and sports car races to concerts and vibrant nightlife, the city offers something for all age groups.

What adds to its appeal is its strategic location which serves as a bridge between Asia, Europe, and Africa, making it convenient and easily accessible for tourists from neighbouring regions. Budget-friendly airfares and short travel times furthermore contribute to its demand, especially from India. “Not to mention, Dubai’s strong foreign relations with neighbouring countries play an important role in making it a key hub for cross-border trade and business. These business dealings not only boost tourism but also the demand for foreign exchange,” says Pavan Kavad, Managing Director, Prithvi Exchange (India) Limited.

Another reason for the city’s thriving tourism sector is the seamless fusion of opulence and old-world charm it offers. This unique mix offers visitors a one-of-a-kind experience that cannot easily be found elsewhere, making it a significant contributor to the ongoing growth in tourist arrivals.

The mix of entertainment, culture, and sports in equal parts continues to elevate its reputation, improving the city’s global image and boosting its economy. Infact, recent data suggests that over 11.9 million passengers from India, alone, visited Dubai in the year 2023, strengthening its position as one of the world’s top travel destinations and pushing India to the top as the source of international arrivals.

Kavad says, “As the city continues to appeal to tourists with each passing year, the demand for UAE dirham (AED) has risen steeply, creating substantial implications for the forex market. This surge in demand has generated an opportunity for foreign exchange service providers like us to cater to the requirements of travellers who are looking to exchange their local currency for AED. As a result, Exchanges are stepping up and ensuring an uninterrupted supply of currency to improve the overall travel experience of visitors.”

With forex and travel currency cards, loading foreign currency and using it for merchant payments, has become easier and convenient than ever before. These cards can be used for everything - from paying for a cab, buying a bottle of water, booking tickets for local commute, to purchasing a luxury item from the mall. “With a quick tap of these cards, tourists can navigate their travel expenses with utmost ease, making their trip seamless and enjoyable,” says Kavad.