Visiting or moving to UAE? Aside from relocating, traveling to the country is essential to know the official currency of the country, also known as UAE Dirham (AED). Whether it be its origins in history, its various denominations and exchange rates today, here lies all things you need to know about the currency such as the driving force behind the Emirates.
Origin and History of the UAE Dirham
UAE Dirham (code AED) officially came into circulation on May 19, 1973, and replaced the Qatar and Dubai Riyal, which had been utilized since 1966 (with the exception of Abu Dhabi, that used the Bahraini Dinar).
The name of the currency is also of historical importance; it is taken after a Greek root, dirham (ancient drachma, known in the trade).
Key Milestones:
- 1973: First coins and notes of the Dirham were released.
- 1982: There was a re-issue of notes replacing the 1 and 1000 dirham ones.
- 2000: The AED 1,000 note was put back into circulation.
- 1995: size of Coins was modified; 50 fils coin was made heptagon.
- 2023: A third AED 500 polymer note design was issued celebrating COP28 and the 52 nd UAE National Day.
Since 1997 the UAE Dirham currency is pegged at a fixed rate with the USA dollar of 1 USD = 3.67 AED.
What Is the Official Currency of the UAE?
The only legal tender of all the Emirates is UAE Dirham (AED). It is divided into 100 fils. In the UAE, the paper printing and issuance of the currency is done in the Central Bank.
Abbreviations:
- Official: AED
- Common Dh or Dhs
UAE Dirham Denominations
Coins In Circulation
- 1 AED
- 50 fils
- 25 fils
(Note) The 1, 5 and 10 fils coins have remained legal tender but are rarely used.
Banknotes in Circulation
- AED 5
- AED 10
- AED 20
- AED 50
- AED 100
- AED 200
- AED 500
- AED 1,000
These notes contain pictures of the UAE structures and emblems of customs and contain items of security such as watermarks, holograms and security threads.
AED Exchange Rates for Popular Currencies
As of May 30, 2025 (Subject to change daily)
| Currency | AED 1 = | 1 Unit = AED |
|---|---|---|
| Indian Rupee (INR) | 23.27 INR | 0.042 AED |
| Pakistani Rupee (PKR) | 76.78 PKR | 0.013 AED |
| Nepalese Rupee (NPR) | 37.26 NPR | 0.026 AED |
| Pound Sterling (GBP) | 0.20 GBP | 4.94 AED |
| Euro (EUR) | 0.24 EUR | 4.16 AED |
| Sri Lankan Rupee (LKR) | 81.49 LKR | 0.01 AED |
| Bangladeshi Taka (BDT) | 33.28 BDT | 0.03 AED |
| Moroccan Dirham (MAD) | 2.52 MAD | 0.40 AED |
| Saudi Riyal (SAR) | 1.02 SAR | 0.97 AED |
| Omani Rial (OMR) | 0.10 OMR | 9.54 AED |
| Philippine Peso (PHP) | 15.15 PHP | 0.06 AED |
| South African Rand (ZAR) | 4.86 ZAR | 0.20 AED |
| Russian Ruble (RUB) | 21.26 RUB | 0.04 AED |
How is the UAE Dirham pegged to the US Dollar?
The AED is pegged at a fixed conversion rate of 3.67AED: 1 USD. The Central Bank of the UAE strives to keep this rate by the involvement into the foreign exchange market.
What is the strongest currency in the world?
By 2025, Kuwaiti Dinar (KWD) is the most powerful currency worth 0.31 KWD per 1 USD.
What currency is used in Dubai?
Only one currency is utilized in Dubai and all Emirates, and it is the UAE dirham (AED).
Can I use US Dollars in Dubai?
Sure, but it will be better to use AED to not to be charged some overpricing costs or even not benefit quite good rates. Smaller shops do not accept USD in all locations.
Where can I exchange currency in Dubai?
The most excellent money exchange centres in Dubai are:
Al Ansari exchange
- Dubai Mall, Airport, Marina Walk, JBR
- Tlf: +971-600-546-000
Al Fardan Exchange
- Stores: Mall of the Emirates, Bur Dubai, Dubai festival City
- Telephone: 600-522-265
Al Rostamani Exchange
- Karama, Silicon Oasis, Dubai Marina
- The contact details are 600-540-004.
