What is the Currency in Dubai? The Complete Guide to the UAE Dirham (AED)

The official currency of Dubai is the UAE Dirham, abbreviated as AED. Its exchange rate is pegged to the US Dollar at a fixed rate of 1 USD = 3.67 AED. The Dirham is subdivided into 100 Fils and is known for its stability, making financial transactions straightforward for visitors and investors.

Understanding the UAE Dirham (AED)

The Arab Emirates Dirham (AED) is the sole legal tender for all seven emirates, including Dubai real estate investment. It is managed by the Central Bank of the United Arab Emirates.

Key facts about the currency:

• Symbol: د.إ or Dhs
• Subunit: 1 Dirham = 100 Fils
• Currency Code: AED

Current UAE Dirham Exchange Rates

The AED has been pegged to the US Dollar since 1997, ensuring remarkable stability. This is a key advantage for international financial planning.

Approximate major currency conversions are:

• 1 US Dollar (USD) = 3.67 AED
• 1 Euro (EUR) = 4.02 AED
• 1 British Pound (GBP) = 4.65 AED
• 100 Indian Rupees (INR) = 4.40 AED

UAE Dirham Banknotes and Coins

Recognizing the physical currency is essential for daily transactions.

Commonly Used Banknotes

The most frequently used banknotes are:

• 5 AED (Brown)
• 10 AED (Green)
• 20 AED (Blue)
• 50 AED (Purple)
• 100 AED (Pink)
• 200 AED (Brown/Yellow)
• 500 AED (Navy Blue)
• 1000 AED (Greenish-Blue)

Commonly used coins include:

• 25 Fils
• 50 Fils
• 1 AED

Prices are often rounded to the nearest 25 fils in cash transactions.

Where to Get the Best Currency Exchange in Dubai

Where you exchange money significantly impacts the rate you receive.

Best Places to Exchange Currency:

• Licensed Exchange Houses: Offer the most competitive rates (e.g., Al Ansari Exchange, UAE Exchange).
• Local Banks: Provide good rates but may have limited operating hours.
• Airport Kiosks: Most convenient but typically offer the least favorable rates.
• ATMs: Widely available and offer rates close to the interbank rate.

Essential Money Tips for Your Dubai Visit

Managing your money effectively will enhance your experience.

Cash vs. Card:

• Cash: Essential for traditional markets (souks), taxis, and small purchases.
• Card/Cashless: Widely accepted in shopping malls, hotels, and modern restaurants.

Tipping Etiquette:

• A 10-15% tip in restaurants is customary if a service charge is not already included in your bill.

UAE Currency Regulations for Travelers

It is important to be aware of local financial regulations.

• Importing Currency: There is no limit on the amount of foreign currency you can bring into the UAE.
• Exporting Currency: You cannot take more than 100,000 AED out of the country.
• Declaration: You must declare cash or equivalent exceeding $10,000 (or ~36,700 AED) when entering or leaving.

The Future of Currency in Dubai: Digital Payments

Dubai is a leader in adopting financial technology.

• Digital Wallets: Apple Pay, Google Pay, and local apps are widely accepted.
• Digital Dirham (CBDC): The Central Bank is developing a digital currency to further modernize the financial system.

Frequently Asked Questions 

What is the best currency to take to Dubai?

The US Dollar is widely accepted for exchange, but the official currency is the UAE Dirham (AED). It is best to have some local currency upon arrival for immediate expenses.

Is the UAE Dirham (AED) a stable currency?

Yes. The AED is considered very stable because it is pegged to the US Dollar at a fixed rate of 3.67 AED per 1 USD. This policy has been in place for over two decades.

Can I use my credit card in Dubai?

Yes. Major credit and debit cards (Visa, Mastercard) are widely accepted in shopping malls, hotels, and restaurants. However, it is always wise to carry some cash for smaller vendors and souks.

Are there ATMs everywhere in Dubai?

Yes. ATMs are widely available in commercial areas, shopping malls, and hotels. Most accept international cards for cash withdrawals in Dirhams.

What should I do if I receive a counterfeit note?

This is rare. If you suspect a note is counterfeit, do not use it. You can report it to any bank or to the police. Licensed exchange houses are the most reliable places to get authentic currency.