Currency in Dubai and the UAE

Managing money during a trip is one of the essentials. Understanding the local currency, exchange rates, and the most convenient payment methods will save you time, nerves, and unnecessary expenses. This guide explains what currency is used in the UAE, how it is best to pay for purchases, and what to bring with you for a smooth and comfortable trip.

Official Currency of the UAE

The national currency of the United Arab Emirates is the UAE dirham (AED). It is widely used across all emirates, and both banknotes and coins are in circulation.

Useful facts about the dirham

• Banknotes: commonly 5, 10, 20, 50, 100, 200, 500 AED. The 1000 AED note appears less often. Small notes are convenient for taxis, markets, and small shops.
• Coins: 1 AED equals 100 fils. Coins of 1 AED, 50 fils, and 25 fils are the most common.
• Rate: the dirham is pegged to the US dollar at 1 USD = 3.67 AED, a rate that has remained stable for many years. Other exchange rates fluctuate.

While many establishments accept major foreign currencies, paying directly in dirhams is always more cost-effective. Payments in other currencies usually involve an unfavorable conversion rate.

What Money to Bring to the UAE

The right combination of payment options will help avoid extra expenses and keep your funds easily accessible.

Dirhams

Convenient for daily spending — markets, small cafés, taxis, tips, and minor services. It’s wise to have some amount upon arrival.

Major Foreign Currencies

Widely accepted for exchange across the country. They are suitable as a backup or for large exchanges once you arrive. Exchanging them into dirhams in local exchange offices is usually convenient.

Cards

In the UAE, international bank cards are the most common payment method. However, availability depends on where the card was issued.

• Visa and Mastercard, issued by international banks, work everywhere: shops, malls, restaurants, hotels.
• UnionPay is accepted in many places but not universally. ATMs usually support these cards, though not all.
• Local payment terminals may occasionally vary, so having more than one international card is helpful.

Optimal strategy

Bring:

1. A small amount of dirhams for the first 24 hours.
2. A reserve of major foreign currency for exchange on-site.
3. At least one reliable international bank card.

This combination minimizes risks and gives you flexibility when paying or exchanging funds.

Payment Cards in the UAE

Most international cards operate smoothly throughout the country, with full support in hotels, malls, supermarkets, and transportation hubs.

Important considerations

• Some card networks may not be accepted if they are issued under certain regional restrictions.
• UnionPay cards are accepted in many major stores, though usage can vary depending on the specific bank and terminal.
• Compatibility and limits can differ across banks, so checking your card settings before the trip is essential.
• When withdrawing or paying, avoid Dynamic Currency Conversion (DCC) — always select “charge in AED” to prevent inflated exchange rates.

If you do not have a suitable card

Consider these alternatives:

• Opening a card account through a foreign bank with standard Visa/Mastercard support.
• Using cryptocurrency cards that instantly convert digital assets into fiat currency during payment.
• Carrying physical cash in widely accepted currencies for later exchange.

Always notify your bank about your trip in advance to prevent automated security blocks.

Where to Exchange Money in the UAE

The rate you receive depends heavily on where you exchange. Some places offer excellent value, while others take a noticeable commission.

Currency Exchange Offices — Best Rates

These networks provide some of the most competitive rates:

• Al Ansari Exchange
• UAE Exchange
• Al Rostamani Exchange

They are located in major malls and along main streets. Comparing a few nearby exchange offices can sometimes save an additional 1–3%.

Banks

Banks offer slightly less favorable rates and the process may take longer. Some banks also charge an additional fee.

This option is good if:

• you need maximum security for a large exchange,
• or there are no exchange offices nearby.

Airports and Hotels — Least Favorable Rates

These are the most convenient but charge the highest margin — typically 5–15% worse than city rates.

Exchange only a small amount here for immediate needs (taxis, basic expenses). Exchange the rest in the city.

Tip: in some cases, a passport may be required for foreign exchange. Keep all receipts until the end of your trip and always check for hidden fees.

Using ATMs in the UAE

ATMs are widely available: in airports, malls, supermarkets, hotels, and metro stations. They accept a wide range of international cards and operate 24/7.

The most common and reliable ATM networks include:

• Emirates NBD — one of the largest networks, widely compatible with international cards.
• ADCB (Abu Dhabi Commercial Bank) — high withdrawal limits, up to 30,000 AED per transaction.
• Emirates Islamic Bank — accepts both cash deposits and withdrawals.

Card acceptance

ATMs in the UAE generally support international systems such as Visa, Mastercard, Plus, Maestro, and others. UnionPay is also supported in many machines, depending on the ATM owner.

Fees

When withdrawing cash, two types of fees may apply:

1. Your own bank’s fee for foreign ATM usage and currency conversion (typically 1.5–3%).
2. ATM owner’s fee, though these are less common in the UAE.

Some ATM terminals require a 6-digit PIN format. If your card uses a 4-digit PIN, you may need to enter two additional zeros.

How to reduce fees

• Withdraw larger amounts at once, within your bank’s limits.
• Always choose to be charged in AED, not in your home currency.
• Use ATMs belonging to major banks — they tend to be more reliable.

Conclusion

To handle money smoothly in the UAE:

• Carry a small amount of dirhams for immediate expenses,
• Bring a reserve of commonly accepted foreign currency for favorable exchange,
• Use an international bank card for most purchases,
• Avoid conversions offered by payment terminals,
• Exchange the majority of funds in city exchange offices.