Major Currencies in Dubai and the UAE

When planning a visit or a move to the United Arab Emirates, one of the first things you’ll need to understand is the currency system. Whether you’re shopping in the luxurious malls of Dubai, dining at a beachfront restaurant, or investing in property, understanding how money works in the UAE is essential.

This guide provides an in-depth overview of the UAE currency, covering its official name, symbol, and usage in everyday life and international trade. We also explore the influence of foreign currencies, such as the US dollar and the euro, and the growing impact of digitalization on how money moves in the region.

What Is the Official Currency of the UAE?

The official currency of the UAE is the UAE Dirham, pronounced "dirham imarati". The international currency code is AED, which stands for the Arab Emirates Dirham. In everyday use, especially in shops or restaurants, you might also see the Arabic symbol د.إ displayed next to prices.

So, if you're wondering, "What is the currency in Dubai UAE?"—it's the AED, just like in the rest of the country.

The UAE currency AED is issued and regulated by the Central Bank of the United Arab Emirates. It is available in coins and banknotes. Coins come in values like 1, 5, 10, 25, and 50 fils, as well as the 1 Dirham coin, which is the most commonly used.

Banknotes are printed in denominations ranging from 5 to 1,000 AED and feature important national symbols such as traditional architecture, local wildlife, and historical monuments.

The AED: A Modern Identity and Symbol

For years, the UAE dirham didn’t have a unique symbol like the dollar’s "$" or the euro’s "€". But that changed in March 2025, when the UAE Central Bank introduced a new currency symbol for the dirham.

Inspired by the UAE flag, the symbol is based on the Latin letter "D" crossed by two horizontal lines, symbolising both stability and progress. It was created to give the UAE dirham currency a more distinctive presence in global financial markets.

Today, this symbol is being increasingly used in digital payments, business contracts, and international transactions to represent the Emirati dirham.

A Pegged Currency: AED and the US Dollar

If you've looked up the UAE currency to USD rate and found it surprisingly stable, that's because the AED is pegged to the US dollar. This means the exchange rate remains fixed, and the UAE Central Bank maintains it through monetary policy.

The official peg rate is 1 USD = 3.6725 AED, and this has been stable for decades. This system provides strong economic benefits such as:

• Reduced exchange rate risk for businesses and investors
• Price stability in import/export activities
• Confidence in the UAE’s financial system

So when someone asks, "Is AED pegged to USD?" or "Why is AED pegged to USD?", the answer lies in promoting economic stability and encouraging international trade.

For tourists, this means you can often use a currency calculator UAE app to get an accurate and consistent conversion when shopping or exchanging money.

Currency Exchange in the UAE

If you're arriving with foreign currency, you’ll find currency exchange offices in all major airports, shopping malls, and urban centres. The UAE currency exchange market is well-developed, with competitive rates and fast services.

Some of the most commonly exchanged foreign currencies include:

• US Dollar (USD)
• Euro (EUR)
• British Pound (GBP)
• Saudi Riyal (SAR)
• Indian Rupee (INR)

When comparing euro currency to United Arab Emirates dirhams or AED to GBP, you’ll usually get better rates at exchange houses than at hotels or airports.

For current rates, it’s best to check online or consult reliable apps that show the UAE currency's today rate based on the latest data from the Central Bank.

Spending Money in the UAE: Cards, Cash & Digital Wallets

Credit and Debit Cards

The UAE is a highly digital-friendly society. Credit and debit cards are widely accepted in hotels, restaurants, taxis, and almost all retail outlets. Visa and Mastercard are the most commonly used, while American Express is accepted in many high-end establishments.

Contactless payments and digital wallets such as Apple Pay, Google Pay, and Samsung Pay are also gaining popularity.

Cash Usage

While cards are convenient, cash still plays a role, especially in smaller markets or traditional souks. It's a good idea to carry some UAE dirham currency for tipping, parking, or small purchases.

Note: All banknotes are in Arabic on one side and English on the other, which helps non-Arabic speakers easily understand values.

ATMs in the UAE

You'll find ATMs nearly everywhere: inside shopping malls, supermarkets, metro stations, gas stations, and even in residential areas. Most ATMs accept international cards, and many offer services in English.

They usually allow withdrawals in multiples of 100 AED, and some also provide currency conversion services for tourists.

The Role of Currency in Trade and Business

The UAE currency system plays a major role in the country's position as a global trade hub. Being pegged to the US dollar gives businesses confidence when making long-term financial plans, especially in sectors like real estate, tourism, and international logistics.

Dubai, in particular, has emerged as a center of global commerce, where investors and professionals deal in multiple currencies daily. From AED to USD and AED to EUR, foreign exchange is seamless and efficient.

If you're considering investing or moving to Dubai, you'll want to read up on what you should know before your trip or relocation for a smoother transition into life in the UAE.

Currency Digitalisation and Future Prospects

The UAE has also taken major steps toward digitalising its financial systems, including blockchain-based payments and plans for a central bank digital currency (CBDC) backed by the UAE dirham.

These innovations are expected to make transactions faster, safer, and more transparent, especially for international business operations. Over time, digital currencies backed by AED could revolutionise how money is moved, taxed, and regulated in the region.

Frequently Asked Questions (FAQ)

What is the currency in Dubai and the UAE?

The official currency is the UAE Dirham (AED). It's the same throughout all seven emirates, including Dubai.

What is the symbol for UAE currency?

The traditional Arabic symbol is د.إ, but a new Latin-based symbol was introduced in 2025: a "D" with two horizontal lines, representing the UAE currency symbol.

Is AED pegged to the US dollar?

Yes. The AED is pegged to USD at a fixed rate of 1 USD = 3.6725 AED. This helps keep the economy stable and predictable.

Can I use USD, EUR, or GBP in Dubai?

Most shops and restaurants accept only AED, but you can easily exchange USD, EUR, or GBP at currency exchange offices or use a credit card.

How can I check today’s UAE currency rate?

Use a currency calculator UAE app or check websites that track the UAE currency's today's rate based on the Central Bank’s data.

Are there any limits on how much currency I can bring into the UAE?

There’s no limit on how much you can bring, but if you carry more than AED 60,000 (or its equivalent), you must declare it upon arrival.

Can I use my home bank card at ATMs in Dubai?

Yes, most international debit and credit cards work in UAE ATMs. You’ll find machines everywhere, from shopping malls to airports.

Are digital wallets used in the UAE?

Yes. Apple Pay, Google Pay, and Samsung Pay are widely used, especially in urban areas like Dubai and Abu Dhabi.

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