UAE Currency Basics
The UAE Dirham (AED) is the official currency. Understanding the denominations, exchange rates, and where to get the best value helps you manage money efficiently during your trip.
About the Dirham (AED)
- Symbol: AED or Dhs (sometimes DH)
- Subdivisions: 1 Dirham = 100 Fils (rarely used, only in supermarkets)
- Pegged to USD: Fixed at 3.67 AED = 1 USD since 1997
- Stable currency: No major fluctuations, predictable for trip planning
Banknotes
- AED 5: Green (rarely seen)
- AED 10: Green/brown (common for small purchases)
- AED 20: Blue (very common)
- AED 50: Purple (common)
- AED 100: Pink/red (most common for ATM withdrawals)
- AED 200: Brown/green (common)
- AED 500: Blue (less common, some small shops may refuse)
- AED 1000: Purple (rare, often refused by taxis and small shops)
Coins
- 1 Dirham: Silver coin, useful for small purchases
- 50 Fils: Smaller silver coin, rarely used
- 25 Fils: Even smaller, almost extinct
- Note: Most transactions round to nearest dirham, fils barely used
Approximate Exchange Rates (As of 2024)
- US Dollar: 1 USD = 3.67 AED (fixed)
- Euro: 1 EUR = 4.00 AED (fluctuates)
- British Pound: 1 GBP = 4.65 AED (fluctuates)
- Canadian Dollar: 1 CAD = 2.70 AED (fluctuates)
- Australian Dollar: 1 AUD = 2.40 AED (fluctuates)
Pro Tip: Since AED is pegged to USD, American travelers have the advantage of a fixed, predictable exchange rate. For other currencies, check current rates before traveling but expect them to stay fairly stable during your trip.
Where to Exchange Money
Multiple options exist for getting dirhams, each with different rates and convenience levels. Knowing which to use saves you money.
Best Option: ATM Withdrawal
- Rate: Best exchange rate, close to official bank rate
- Fees: Your bank's international withdrawal fee (usually 1-3%)
- Availability: ATMs everywhere - malls, airports, hotels, streets
- Convenience: 24/7 access, withdraw as needed
- Tip: Withdraw larger amounts to minimize per-transaction fees
Good Option: Currency Exchange Shops
- Rate: Competitive, shop around for best rate
- Fees: Usually no commission, rate includes their margin
- Location: Malls, souks, shopping areas, airports
- Recommended chains: Al Ansari Exchange, UAE Exchange, Al Rostamani
- Tip: Avoid airport exchanges if possible, rates 3-5% worse than city shops
Okay Option: Hotels
- Rate: Poor, usually 5-10% worse than market rate
- Fees: May charge commission on top of bad rate
- Convenience: Very convenient, open 24/7
- When to use: Emergency only or very small amounts
Avoid: Airport Currency Exchange (Arrival)
- Rate: Worst rates, 5-8% worse than city
- When to use: Exchange just enough for taxi/immediate needs (AED 100-200)
- Better approach: Use ATM in airport arrivals area instead
Home Country Exchange (Before Travel)
- Rate: Usually poor unless you have good bank relationship
- Convenience: Arrive with cash ready
- Recommendation: Only exchange small amount for arrival, get rest in UAE
Money Saving Tip: Best strategy is ATM + credit cards. Withdraw AED 1,000-2,000 from ATM upon arrival for cash needs (taxis, small purchases, tips). Use credit card everywhere else. This combination gives you best rates and maximum convenience.
Credit Cards & Digital Payments
UAE is highly modernized with near-universal card acceptance. Digital payments and contactless are standard everywhere.
Credit Card Acceptance
- Visa & Mastercard: Accepted virtually everywhere
- American Express: Widely accepted, occasionally refused at small shops
- Discover: Limited acceptance, not recommended as primary card
- Contactless: Works everywhere, very common payment method
- Chip & PIN: Standard, signature less common
Where Cards Work
- Hotels: Always, often require card for incidentals
- Restaurants: All accept cards, even small cafes
- Shops & Malls: Universal acceptance
- Taxis: Dubai taxis accept cards, though some drivers prefer cash
- Supermarkets: Always accept cards
- Attractions: All major attractions accept cards
Where You Need Cash
- Small independent shops: In souks or old areas
- Street vendors: Food carts, small stalls
- Tips: Cash tips preferred though some allow card tipping
- Some taxis: Older taxis may not have card readers
- Traditional markets: Gold souk, spice souk vendors
Digital Wallets
- Apple Pay: Widely accepted, works with contactless terminals
- Google Pay: Similarly accepted
- Samsung Pay: Works but less common
- Local apps: Careem Pay, Beam Wallet gaining popularity
Credit Card Fees to Watch
- Foreign transaction fees: 1-3% charged by many credit cards
- Get fee-free card: Many travel cards have no foreign transaction fees
- Dynamic currency conversion: When asked "charge in your home currency?" always say NO - choose AED for better rate
Important: Always decline dynamic currency conversion when paying by card. If terminal or receipt shows your home currency (USD, EUR, etc.), you're being overcharged 3-5%. Always insist on paying in AED - your card network gives better exchange rates than merchants.
ATMs & Banking Services
ATM Availability
- Everywhere: Malls, hotels, airports, metro stations, streets
- 24/7 access: Most ATMs operational around the clock
- English language: All ATMs have English option (and many other languages)
- Safe: Very safe to use, low crime means ATM security not major concern
Major Banks with ATMs
- Emirates NBD: Largest network, excellent reliability
- ADCB (Abu Dhabi Commercial Bank): Widespread
- Mashreq Bank: Good coverage
- Dubai Islamic Bank: Common in Dubai
- RAK Bank: Good alternative option
ATM Fees
- UAE ATM fees: Most don't charge local fee for foreign cards
- Your bank's fees: Typically $3-5 per withdrawal + 1-3% foreign transaction fee
- ATM warning: Some ATMs warn about fees - this is usually YOUR bank's fee, not theirs
- Minimize fees: Withdraw larger amounts less frequently
ATM Withdrawal Limits
- Per transaction: Usually AED 2,000-3,000 maximum
- Daily limit: Depends on your card, typically AED 5,000-10,000
- Tip: If you need more, make multiple transactions at different ATMs
ATM Safety Tips
- Use ATMs in well-lit, populated areas (malls, hotels)
- Cover keypad when entering PIN
- Be aware of surroundings
- Don't accept help from strangers at ATM
- Check for card skimmers (though very rare in UAE)
Pro Tip: Emirates NBD ATMs are most reliable and have good English interfaces. Located in every mall and major area. Their ATMs clearly show any fees before you confirm withdrawal, letting you cancel if needed.
Tipping in UAE
Tipping is not mandatory in UAE but appreciated for good service. Understanding local tipping customs helps you navigate gracefully.
General Tipping Philosophy
- Not obligatory: Service charge often included in bills
- Appreciated: Tips are welcomed and boost modest wages
- Expected in tourist areas: More common in hotels, tourist restaurants
- Less expected locally: Local restaurants may not expect tips
Restaurants & Cafes
- Fine dining: 10-15% if service charge not included
- Casual restaurants: 10% or round up bill
- Cafes: AED 2-5 or round up
- Check bill: If 10-15% service charge listed, additional tip optional
- Cash preferred: Hand directly to server if possible
Hotels
- Bellhop: AED 10-20 per bag
- Housekeeping: AED 10-20 per day, leave on pillow with note
- Concierge: AED 20-50 for special assistance
- Doorman: AED 5-10 if they assist with luggage/taxi
- Valet: AED 10-20 when car is returned
Taxis & Transportation
- Regular taxis: Round up to nearest 5 or 10 dirhams
- Longer rides: 10% tip appreciated
- Uber/Careem: In-app tipping available, 10% reasonable
- Airport transfers: AED 20-30 if driver helps with luggage
Services
- Spa treatments: 10-15% if not included
- Salon/barber: 10-15% or AED 10-20
- Tour guides: AED 50-100 per person for full day tour
- Delivery: AED 5-10 for food delivery
When NOT to Tip
- Fast food restaurants (McDonald's, KFC, etc.)
- Shops and retail stores
- Gas station attendants (fuel is full-service but tip not expected)
- Government services
Cultural Note: Service workers in UAE often come from South Asia, Philippines, and other countries where wages are modest. Tips significantly help these workers. While not mandatory, tipping good service is appreciated and makes a real difference to service staff.
Money-Saving Tips for UAE
Accommodation Savings
- Book summer: 50-60% cheaper June-September
- Stay slightly outside tourist areas: Bur Dubai, Deira cheaper than Marina/Downtown
- Use hotel comparison sites: Booking.com, Agoda often have flash sales
- Weekday vs weekend: Thursday-Friday nights more expensive
Food & Dining Savings
- Lunch specials: Many restaurants offer 50% off lunch menus
- Eat where locals eat: Areas like Karama, Satwa, Bur Dubai have cheap, authentic food
- Supermarkets: Carrefour, Lulu have prepared food sections, fraction of restaurant cost
- Happy hours: 5-8pm many bars offer 50% off drinks
- Avoid hotel restaurants: Walk 5 minutes outside hotel for 30-50% savings
Shopping Savings
- Dubai Shopping Festival: January-February, massive discounts
- Summer sales: July-August up to 70% off
- Outlet malls: Dubai Outlet Mall, Outlet Village have 30-70% discounts year-round
- Negotiate in souks: Gold, spice, textile souks expect bargaining (start at 60% of asking price)
- VAT refund: Tourists get 5% VAT back on purchases over AED 250 (claim at airport)
Transportation Savings
- Use metro: AED 3-7 per trip vs AED 25-60 for taxi
- Nol day pass: AED 20 unlimited metro/bus for heavy usage days
- Share Uber/Careem: Careem GO Share saves 20-30%
- Walk when possible: Dubai Marina, JBR, Downtown are walkable
Attraction Savings
- Book online: Usually 10-20% cheaper than gate price
- Combo tickets: Burj Khalifa + Aquarium combos save 15-20%
- Free attractions: Dubai Fountain, beaches, souks, public beaches all free
- Museum days: Some museums free or discounted certain days
Budget Breakdown: Budget traveler (metro, cheap eats, free attractions): AED 150-250/day. Mid-range (mix of taxis/metro, mid-range restaurants, some paid attractions): AED 400-600/day. Luxury (taxis, fine dining, premium experiences): AED 1,000+/day. These are per person, excluding accommodation.