Glossary
Annual fee
The annual fee is a fixed yearly charge some cards apply just for holding the card, regardless of how much you spend — ranging from AED 0 (free-for-life) to several thousand for premium tiers.
A "free-for-life" card genuinely charges zero annual fee for as long as you hold it. Other cards waive the fee conditionally — for example, only in the first year, or only if you spend above a set annual threshold — so read the waiver condition, not just the headline "AED 0 first year".
A fee only makes financial sense when the measurable value you get back — cashback earned, lounge visits used, welcome bonus, travel insurance actually claimed — exceeds the fee. Calculate your break-even spend: at a 2% cashback rate, an AED 500 annual fee needs AED 25,000 of qualifying annual spend just to break even before any real gain.
Many cardholders keep paying a premium annual fee for benefits (lounge access, concierge) they rarely use. Review your card portfolio annually against your real usage, not the marketing at signup.