This is false. PayPal UAE allows withdrawals to bank accounts and does not limit to credit or prepaid cards. It just tries to send it in the local currency and so tries to convert USD to AED. Which is problematic if the local bank account you have in UAE is US dollar based. Hopefully PayPal can allow sending funds to US dollar bank accounts which are not from USA without trying to convert to a local currency. But I don't think its possible through the online interface. May need to escalate to support and see what is possible.
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