UAE Currency: The Dirham, Cash and Card Use
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The currency of the UAE is the dirham, code AED. The same money works in every emirate, Dubai and Abu Dhabi included. Cards are accepted almost everywhere, but a little cash helps in markets, taxis and for tips.
Quick facts
Currency: the UAE dirham, code AED
Subunit: 1 dirham equals 100 fils
Link to the dollar: the dirham is pegged to the US dollar. The Central Bank of the UAE lists the dollar at 3.6725 dirhams on its August 2026 rate sheet
Live rate: we do not print a daily rate here. The rate you get depends on your bank or exchange office, so check your bank for the current rate
On MBD Travel: prices are shown in USD, and the currency selector offers EUR, USD and AED
What is the dirham and how is it written?
The dirham is the official currency of the UAE. Price tags show AED, Dh or DH, and all three mean the same thing. One dirham splits into 100 fils, so you will sometimes see amounts such as 12.50.
Banknotes come in 5, 10, 20, 50, 100, 200, 500 and 1000. The coins are 1 dirham, 50 fils and 25 fils. The 5, 10 and 50 dirham notes are the handiest ones abroad: tips, water, snacks and short taxi rides are settled with them.
How the dirham relates to the dollar
The dirham is tied to the US dollar at a fixed rate. The Central Bank of the UAE publishes a monthly rate sheet, and the August 2026 sheet shows the dollar at 3.6725 dirhams. Because of the peg, a price in dollars and a price in dirhams do not drift apart from day to day.
What does vary is the margin your bank or exchange office adds when you convert your own money. That is why we do not give a live rate here. Check your bank for the current rate, and compare two or three places before you leave.
Cash or card?
Hotels, malls, larger restaurants and ticket desks take cards without fuss, and contactless payment is common. Cash still pays off in a few cases:
Small stalls and bargaining in the old markets
Tips, especially when the bill has no service charge added
Small cafes, kiosks and short rides
As a backup in case your card stops working for a day
You do not need to withdraw a lot. A budget of 300 to 500 dirhams for the first day is a fair starting point for many travellers. That is a suggestion, not a rule.
Do you need dirhams for tickets and tours?
On MBD Travel experiences and tours are priced in USD. Burj Khalifa At the Top starts from 70.53 USD and Madame Tussauds Dubai from 25.87 USD, for example. How the ticket is charged is shown in the cart, under the terms of the offer you choose. The dirhams you spend on the spot usually go on food, transport, tips and shopping.
If a card terminal offers to charge you in your home currency, paying in dirhams often gives a clearer calculation. Ask your own bank about its fee for foreign use before you travel.
Shopping and bargaining tips
In malls the tag is the price and nobody expects you to haggle. The old markets are different: spice, textile and souvenir stalls expect some bargaining. Look at a few stalls before you accept the first price.
Value added tax in the UAE is 5 percent. Check whether a tag shows the price with or without tax. Some shops may refund tax to tourists, but you need to ask for the terms at the shop (not verified: refund rules depend on the shop). For market atmosphere, look at the Deira side of the city.
Checklist before you go
Ask your bank about foreign card use and its fees
Convert a small amount at the airport, then compare rates in the city
Check whether the bill already has a service charge, and keep small notes for tips
Read the visa guide while you plan your budget
The visa page and the experiences below help you plan the trip around real prices.
Frequently asked questions
What is the currency of the UAE?
The UAE dirham, code AED. Tags show AED, Dh or DH. One dirham equals 100 fils.
Is the dirham pegged to the dollar?
Yes, the dirham is pegged to the US dollar at a fixed rate. The Central Bank of the UAE's August 2026 rate sheet shows the dollar at 3.6725 dirhams. The rate you get for your own money depends on your bank or exchange office, so check your bank for the current rate.
Can you pay by card in Dubai?
Yes. Hotels, malls, larger restaurants and ticket desks all take cards. Keep some cash for market stalls, tips and small businesses.
Do you need to buy dirhams before you travel?
It is not required. Converting a small amount before you go or at the airport and comparing rates in the city is a sensible way to start. Check your bank for the current rate.
Which currency does MBD Travel use for prices?
Prices are shown in USD. The currency selector on the site also offers EUR, USD and AED. The total and the payment terms are confirmed in the cart.
Information can change. For rates, taxes and payment terms rely on the current official source and the product page.
