The currency used in Dubai is the United Arab Emirates Dirham (AED). This stable and widely accepted currency is essential for all your transactions, from daily shopping to major purchases, ensuring a smooth experience in this global city.

Key Takeaways

• Understand the official currency: United Arab Emirates Dirham (AED).
• Learn about the AED’s stability and exchange rates.
• Discover where to exchange currency and ATMs.
• Know the best payment methods: cash vs. cards.
• Familiarize yourself with tipping customs and common costs.
• Navigate spending and budgeting with practical tips.

Which Currency Is Used In Dubai? Your Essential Guide to the UAE Dirham

Planning a trip to Dubai or perhaps settling in as an expat? One of the first practical questions you’ll have is about money. You might be wondering, “Which currency is used in Dubai?” It’s a common query, and understanding it is key to navigating this vibrant metropolis with ease. Dubai is a global hub, and knowing its currency will help you shop, dine, and explore without a hitch. This guide will break down everything you need to know about the United Arab Emirates Dirham (AED), making your financial experience here as smooth as the desert sands.

Understanding the United Arab Emirates Dirham (AED)

The official currency of Dubai, and indeed the entire United Arab Emirates, is the United Arab Emirates Dirham, commonly abbreviated as AED. You’ll also see it referred to as the Dirham. It’s the lifeblood of commerce in this dazzling city, used for everything from a cup of Karak chai at a local cafeteria to a luxury car from a downtown showroom. The AED is a strong, stable currency, pegged to the US Dollar, which provides a predictable exchange rate for many international visitors and businesses.

The AED’s Peg to the US Dollar

The United Arab Emirates Dirham has been pegged to the US Dollar since 1980. This means its value is fixed against the USD. Currently, the official exchange rate is:

1 US Dollar (USD) = 3.6725 United Arab Emirates Dirhams (AED)

This fixed peg offers significant stability and predictability for businesses and travelers. If you’re coming from a country that uses the US Dollar, your spending power in Dubai is essentially the same. For those coming from other countries, this peg makes it easier to calculate exchange rates and understand the value of your money.

Denominations of the UAE Dirham

The UAE Dirham is divided into 100 subunits called fils. You’ll encounter coins and banknotes in various denominations:

Coins

The coins in circulation are:

• 1 Dirham
• 50 fils
• 25 fils
• 10 fils
• 5 fils
• 1 fil (rarely seen or used in transactions)

The 1 Dirham coin is silver and gold in color, while the smaller fils coins are typically silver. You’ll often receive fils coins as change from purchases.

Banknotes

The banknotes, known as dirhams, come in the following denominations:

• 5 AED (Brown)
• 10 AED (Green)
• 20 AED (Blue)
• 50 AED (Purple)
• 100 AED (Pink)
• 200 AED (Green and beige)
• 500 AED (Dark blue)
• 1000 AED (Greenish-brown)

The newer banknotes feature the portraits of the UAE’s leaders and iconic landmarks, reflecting the nation’s heritage and progress. The 500 AED and 1000 AED notes are used for larger transactions. It’s always a good idea to have smaller denominations on hand for everyday purchases like taxis or small snacks.

Exchange Rates and Where to Exchange Your Currency

Understanding exchange rates is crucial for managing your budget. While the AED is pegged to the USD, rates for other currencies will fluctuate. Dubai offers numerous options for exchanging your home currency into AED.

Current Exchange Rates (Approximate)

As the AED is pegged to the USD at 3.6725, here are approximate equivalents for some common currencies. Please note that these are indicative and can change. It’s always best to check live rates before you travel or exchange.

Currency	Symbol	Approximate AED Equivalent
US Dollar	USD	3.67 AED
Euro	EUR	3.95 AED
British Pound	GBP	4.65 AED
Indian Rupee	INR	0.044 AED
Philippine Peso	PHP	0.065 AED
Pakistani Rupee	PKR	0.013 AED

Note: Exchange rates are subject to change. Always verify with your bank or exchange provider for the most up-to-date rates.

Best Places to Exchange Money in Dubai

Dubai provides a variety of convenient and competitive options for currency exchange:

• Banks: Major banks like Emirates NBD, Abu Dhabi Commercial Bank (ADCB), and Dubai Islamic Bank offer currency exchange services. They are generally reliable, but rates might be slightly less competitive than specialized exchange houses.
• Exchange Houses: These are plentiful and often offer the best rates. Popular ones include Al Ansari Exchange, UAE Exchange (now called Finablr), and Wall Street Exchange. They have numerous branches across the city, including in malls and busy commercial areas.
• Airport Exchange Counters: Available at Dubai International Airport (DXB) and Al Maktoum International Airport (DWC). While convenient upon arrival, rates here might be less favorable than in the city. It’s advisable to exchange only a small amount for immediate needs.
• Online and Mobile Services: Some fintech companies and apps offer competitive rates and may offer delivery services or pick-up points.

Tips for Exchanging Currency

• Compare Rates: Always compare rates from at least two different providers before exchanging a significant amount.
• Check Fees: Be aware of any commission fees or hidden charges. Some places advertise “zero commission,” but might offer a less favorable exchange rate.
• Avoid Exchanging at Hotels: Hotel currency exchange desks usually offer the poorest rates.
• Carry Identification: For larger transactions, you might need to present your passport or Emirates ID.
• Keep Receipts: Always keep your exchange receipts for your records.

Using Your Credit and Debit Cards in Dubai

Dubai is a modern, cashless-friendly city. Credit and debit cards are widely accepted, making transactions very convenient for visitors and residents alike.

Card Acceptance

You can use your Visa, Mastercard, and American Express cards at most establishments, including:

• Hotels
• Restaurants and cafes
• Shopping malls
• Supermarkets
• Department stores
• Online retailers
• Taxis (though some may prefer cash, many have card machines)

Look for the card network logos displayed at payment terminals.

ATM Availability

ATMs are readily available throughout Dubai, found in malls, on streets, at petrol stations, and within bank branches. You can withdraw AED using your international debit or credit card. However, be mindful of:

• Withdrawal Fees: Your home bank and the local ATM provider may charge fees for international withdrawals.
• Daily Limits: Your card may have daily withdrawal limits set by your bank.
• Dynamic Currency Conversion (DCC): When withdrawing, you might be asked if you want to be charged in your home currency or AED. It is almost always better to choose AED to get a better exchange rate from your bank.

Pro Tip:

Inform your bank or credit card company about your travel dates to Dubai. This prevents them from flagging your transactions as suspicious and potentially blocking your card.

Cash vs. Card: Which is Better in Dubai?

While cards are convenient, having some cash on hand is still essential in Dubai.

When to Use Cash:

• Small Purchases: For small items at local souks (markets), street vendors, or smaller convenience stores, cash is often preferred or sometimes necessary.
• Taxis: Some traditional taxis or smaller taxi services might prefer cash. Ride-sharing apps like Careem and Uber are fully integrated with card payments.
• Tips: While not mandatory, if you wish to tip service staff, cash is the most straightforward way.
• Souks and Markets: Haggling is common in souks, and cash makes these transactions smoother.

When to Use Cards:

• Major Purchases: For shopping in malls, booking hotels, dining in established restaurants, and paying for tours, cards are ideal.
• Convenience: It saves you from carrying large amounts of cash.
• Record Keeping: Card statements provide a clear record of your spending.

A good strategy is to use your card for most expenses and withdraw a moderate amount of cash for smaller purchases and potential tips.

Understanding Dubai’s Tipping Culture and Common Costs

Knowing how much to tip and what to expect regarding prices can help you budget effectively.

Tipping in Dubai

Tipping is not mandatory in Dubai, as service charges are often included in the bill. However, it is appreciated for excellent service.

• Restaurants: A service charge of 10-15% is usually added to your bill. If you wish to tip extra for outstanding service, an additional 5-10% in cash is customary.
• Taxis: Rounding up the fare or leaving a few extra dirhams for the driver is common.
• Hotel Staff: For porters, housekeepers, or concierges who provide exceptional service, a tip of 5-20 AED is appropriate.
• Tour Guides and Drivers: Depending on the length and quality of the tour, a tip of 20-50 AED per person is often given.

Typical Costs (Estimates)

Prices can vary significantly depending on the location and type of establishment. Here are some general estimates:

Item/Service	Estimated Cost in AED	Notes
Cup of Coffee (e.g., Starbucks)	15 – 25 AED
Budget Meal (e.g., local cafeteria)	20 – 40 AED
Mid-range Restaurant Meal (per person)	70 – 150 AED	Excluding drinks
Fine Dining Meal (per person)	300+ AED
Local Bus Fare	3 – 7.5 AED	Using Nol card
Taxi Fare (per km)	2 – 3 AED	Plus starting fee and potential surcharges
Bottle of Water (supermarket)	1 – 3 AED
Cinema Ticket	35 – 60 AED

Note: These are approximate costs and can change.

Shopping and Spending in Dubai

Dubai is a shopper’s paradise, from traditional souks to world-class mega-malls. Knowing how to manage your AED will enhance your shopping experience.

Navigating the Souks

In the bustling souks like the Gold Souk and Spice Souk in Deira, or the Textile Souk, haggling is expected. Start by offering about half of the asking price and negotiate upwards. Cash is king here, and it’s the best way to secure a good deal.

Mall Shopping

Dubai’s iconic malls, such as The Dubai Mall and Mall of the Emirates, offer a vast array of international and local brands. Here, prices are fixed, and card payments are universally accepted. You can often find tax-free shopping benefits for tourists on certain purchases, which can be claimed at the airport.

Budgeting Your Spending

Dubai offers options for every budget. You can enjoy affordable street food and use public transport, or indulge in luxury experiences. Setting a daily budget and tracking your expenses (using your card statements or a simple notes app) will help you stay in control.

External Links for Further Information

For official information and further details, you can refer to these authoritative sources:

• Central Bank of the UAE: For official currency information and economic data. www.centralbank.ae
• Dubai Tourism: Official tourism information, including practical tips for visitors. www.visitdubai.com
• UAE Ministry of Economy: Information on economic regulations and consumer rights. www.economy.gov.ae

Frequently Asked Questions (FAQs) about Dubai Currency

What currency should I bring to Dubai?

It’s best to bring a mix. You can exchange your home currency for UAE Dirhams (AED) upon arrival. Many people also find it convenient to use credit/debit cards and withdraw AED from ATMs as needed. Carrying some USD can also be useful as it’s widely recognized, though exchanging it will likely yield a better rate than using it directly for purchases.

Is it easy to exchange money in Dubai?

Yes, it is very easy. Dubai has numerous banks, licensed exchange houses (like Al Ansari Exchange and Wall Street Exchange), and airport counters where you can exchange major currencies into AED. Rates can vary, so comparing is recommended.

Can I use my credit card in Dubai?

Absolutely. Credit cards (Visa, Mastercard, American Express) are widely accepted in hotels, restaurants, malls, supermarkets, and most other establishments. Always check if a smaller shop or taxi accepts cards before you proceed.

What is the exchange rate for AED to USD?

The United Arab Emirates Dirham (AED) is pegged to the US Dollar (USD). The official exchange rate is 1 USD = 3.6725 AED. This makes it very straightforward for US Dollar users.

How much cash should I carry in Dubai?

For daily expenses like local snacks, small purchases in souks, or tipping, carrying around 100-200 AED is usually sufficient. You can always withdraw more from ATMs if needed. For larger purchases like electronics or luxury goods, cards are preferred.

Are there any currency restrictions in Dubai?

There are no restrictions on importing or exporting foreign currency. However, if you are carrying cash or bearer negotiable instruments exceeding 100,000 AED (or its equivalent in foreign currency), you must declare it to the UAE Customs authorities upon arrival or departure. For more details, refer to the Central Bank of the UAE’s cash declaration guidelines.

Do I need to tip in Dubai?

Tipping is not mandatory as a service charge is often included in bills. However, it is customary to tip for good service. For restaurants, an extra 5-10% in cash is appreciated. Rounding up taxi fares or leaving a few dirhams for drivers is also common.

Conclusion

Navigating the currency in Dubai is straightforward once you understand the basics of the United Arab Emirates Dirham (AED). Its stable peg to the US Dollar offers predictability, and the city is well-equipped with banks, exchange houses, and ATMs to facilitate easy currency exchange. While credit and debit cards are widely accepted for most transactions, having some cash on hand is always a practical measure for smaller purchases or when exploring the vibrant souks. By familiarizing yourself with the AED, its denominations, and local spending habits, you’ll find managing your money in Dubai to be a seamless part of your enriching experience in this global city.