What Is Dubai Money Called? A Look at the UAE Dirham

Dubai’s rapid transformation into a global hub for tourism and business has heightened interest in its financial system, particularly the currency used in the United Arab Emirates (UAE). Understanding the local currency is essential for engaging with Dubai’s economy.

This article explores the UAE’s currency, covering its official name, symbols, denominations, exchange processes, and transaction handling.

Official Name

The official currency of Dubai, and the UAE as a whole, is the UAE Dirham (AED). The term “Dirham” stems from the Greek word “Drachmae,” reflecting the region’s historical trade connections. Introduced in 1973, the Dirham replaced the Qatar and Dubai Riyal, representing a move toward economic unity. Issued and regulated by the Central Bank of the UAE, the Dirham’s value is pegged to the US Dollar, ensuring stability and limiting exchange rate fluctuations.

Currency Code and Symbol

The currency code for the UAE Dirham is AED, as standardized by the International Organization for Standardization (ISO) under ISO 4217. This code is vital for international transactions involving the UAE. The Dirham symbol is “د.إ” in Arabic and “Dh” in English, both used in pricing and financial documents to distinguish it from other currencies.

Denominations

The UAE Dirham is available in banknotes of 5, 10, 20, 50, 100, 200, 500, and 1,000 Dirhams, with designs showcasing the UAE’s cultural heritage. The 1,000 Dirham note is commonly used for larger transactions. Coins are issued in denominations of 1, 25, 50 fils, and 1 Dirham, with the 1 Dirham coin being frequently used in daily purchases. While digital payments are on the rise, cash remains a significant part of transactions in the UAE.

Exchange and Conversion

Currency exchange in Dubai is accessible at airports, malls, banks, and licensed outlets, often offering competitive rates. The Dirham’s peg to the US Dollar simplifies USD conversions. For other currencies, monitoring exchange rates and market trends is advisable. Online tools can assist in identifying favorable exchange opportunities.

Handling Transactions

The UAE Dirham is widely accepted across Dubai, from luxury establishments to local markets. Cash is prevalent, especially in smaller venues such as souks, though digital payments are increasingly common. Credit and debit cards, particularly Visa and Mastercard, are widely used. Contactless payment systems like Apple Pay and Google Pay are also gaining traction. Businesses should ensure compatibility with these payment methods. Dynamic Currency Conversion (DCC) allows cardholders to pay in their home currency but may incur higher fees. Keeping small denominations of cash on hand is recommended for tips and minor expenses.