Dubai is a dream destination, but before you pack your bags, there’s one big question: What is the best currency to take to Dubai? The official currency is the UAE Dirham (AED), but should you carry AED from your home country or exchange money after landing? What about using USD, GBP, or EUR? Don’t worry! We’ve got you covered.
In this blog, we’ll break down the best currency to use in Dubai, where to exchange it, and the smartest ways to spend without losing money on conversion fees. Whether you’re a tourist, student, or business traveler, this guide will help you get the most value for your money in the dazzling city of Dubai!
Table of contents
What is the Best Currency to Use in Dubai?
The best currency to use in Dubai is the UAE Dirham (AED). It is the official currency and is accepted everywhere, from luxury hotels to small street vendors.
Using AED ensures smooth transactions without worrying about conversion rates or additional charges.
Official Currency of Dubai
Dubai’s official currency is the United Arab Emirates Dirham (AED). It is abbreviated as AED and symbolized as د.إ. Banknotes are available in denominations of 5, 10, 20, 50, 100, 200, 500, and 1,000 AED, while coins come in 1 dirham and smaller fils (cents).
Exchange Rate & Peg to USD
The AED is pegged to the US Dollar (USD) at a fixed rate of 1 USD = 3.67 AED. This means its value remains stable against the USD, making it a reliable currency for travelers.
However, if you’re exchanging other currencies like EUR, GBP, or INR, the rates fluctuate based on the global forex market.
As of March 12, 2025, here are the exchange rates for various currencies against the United Arab Emirates Dirham (AED):
| Currency Pairs | Exchange Rate |
| GBP/AED | 4.755 AED |
| EUR/AED | 4.00 AED |
| INR/AED | 0.050 AED |
| AUD/AED | 2.70 AED |
| CAD/AED | 2.85 AED |
Please note: Exchange rates for other currencies fluctuate based on the global forex market. The rates provided above are approximate and subject to change.
What is the Best Currency to Take to Dubai?
If you’re traveling to Dubai, the best currency to carry depends on your convenience and exchange costs. Ideally, you should bring UAE Dirhams (AED) to avoid the hassle of currency exchange.
However, if AED is not available in your country, carrying USD, EUR, or GBP is the next best option, as they are easily exchangeable in Dubai at competitive rates.
Also Read: Understand the minimum bank balance required for a Dubai student visa to ensure you can cover your education and living costs.
Should You Carry AED or Foreign Currency to Dubai?
If you are still wondering about which is the best currency to use and take to Dubai, continue reading.
While the UAE Dirham (AED) is the official currency, many travelers consider carrying USD, EUR, or GBP instead. But is that a good idea? Let’s break it down so you can make the smartest choice for your trip!
Using AED is the best currency and the most hassle-free choice in Dubai.
If you want a stress-free trip, carrying AED is your best bet. It’s accepted everywhere—shopping malls, restaurants, taxis, and even that little juice stall at Jumeirah Beach!
Plus, you won’t have to worry about conversion fees or awkward “Do you accept dollars?” conversations. Check out the advantages of using UAE Dirhams (AED) as the best currency in Dubai-
Using USD, EUR, or GBP is good but not the best deal.
While Dubai is an international hub, not all places accept foreign currencies like USD, EUR, or GBP. Some hotels and big stores might take USD, but they won’t always offer a great exchange rate.
That means you could end up paying more than necessary, adding to hidden costs in currency exchange– why waste money when you could spend it on a desert safari or a Burj Khalifa visit?
Check out the table to ascertain the advantages and disadvantages of using foreign currencies in Dubai over AED.
| Aspect | Using Foreign Currencies (USD, EUR, GBP) | Using AED (Dirhams) |
| Acceptance | Limited; only in some hotels & big stores | Accepted everywhere |
| Exchange Rate | Unfavorable, with hidden markups | Standardized & fair |
| Transaction Fees | Merchants may charge extra fees | No extra costs |
| Convenience | May require negotiation or conversion | Seamless payments |
| Overall Value | Potentially higher expenses | Best value for money |
Now that you know how the UAE Dirham is pegged to the US Dollar and how exchange rates fluctuate, the next step is knowing where to exchange your money for the best rates.
Let’s explore the best places to exchange currency in Dubai and some tips to save on conversion fees.
Currency Exchange in Dubai
Dubai has a well-developed currency exchange system, making it easy for travelers and residents to exchange money. Here’s what you need to know about currency exchange in Dubai:
Where to Exchange Currency in Dubai?
You can exchange foreign currency in several places, including:
- Banks: Banks in Dubai offer reliable exchange rates but may have limited hours.
- Currency Exchange Centers: These are found in malls, airports, and popular tourist spots, often offering competitive rates.
- Airports: They are convenient, but usually airport currency exchange rates have higher fees or slightly lower rates.
- Hotels: They offer exchange services but often at less favorable rates.
Best Places for Currency Exchange in Dubai
Some of the top exchange houses in Dubai include:
- Al Ansari Exchange
- UAE Exchange
- Al Fardan Exchange
- Western Union (for money transfers and currency exchange)
- Sharaf Exchange
These exchange houses offer competitive rates and have multiple branches across the city.
Tips for Getting the Best Exchange Rate
Consider these tips to get the best exchange rates in Dubai:
- Compare rates at multiple exchange houses before making a transaction.
- Avoid exchanging money at airports unless necessary, as rates are less favorable.
- Use credit/debit cards that offer zero foreign transaction fees when possible.
- Consider withdrawing AED directly from ATMs for better rates than airport exchange counters.
Also Read: Learn about the different categories of banks in the UAE and make an informed decision for your banking needs.
Best Payment Methods in Dubai
Dubai is a modern city with a highly developed financial system, offering multiple payment options. While cash (AED) is useful in certain places, international debit/credit cards and mobile payment methods are widely accepted. Here’s a breakdown of where and how you should pay:
1. Where Cash is Required vs. Where Cards Are Widely Accepted
- Cash is Preferred:
- Traditional markets (souks), street vendors, and small shops.
- Taxis (though some accept cards, it’s better to carry cash).
- Local food stalls and budget eateries.
- Tipping hotel staff, porters, and service workers.
- Cards Are Widely Accepted:
- Malls, supermarkets, and retail stores.
- Hotels, restaurants, and tourist attractions.
- Ride-hailing apps like Uber and Careem.
- Metro stations and other public transport services.
2. International Debit/Credit Cards: Fees & Charges
If you’re planning to use your international debit or credit card, be aware of possible charges, such as:
- Foreign transaction fees (usually 1%–3% per transaction).
- Currency conversion charges, if charged in your home currency instead of AED (avoid DCC—Dynamic Currency Conversion).
- ATM withdrawal fees vary by bank and card type.
Tip: Use a travel-friendly card with low or zero foreign transaction fees to save money while making purchases in Dubai.
3. Mobile Payments (Apple Pay, Google Pay, Samsung Pay)
Dubai is a cashless-friendly city, and mobile payments are widely accepted in:
- Shopping malls, restaurants, and coffee shops.
- Ride-hailing apps like Uber and Careem.
- Hotels, entertainment venues, and major attractions.
Using Apple Pay, Google Pay, or Samsung Pay is a secure and convenient way to make payments without carrying cash or physical cards. Just ensure your bank supports these services before your trip.
Final Thoughts on the Best Currency to Use in Dubai
The clear winner is the UAE Dirham (AED)—it’s accepted everywhere and saves you from high exchange fees. If you can’t get AED before your trip, carry USD, EUR, or GBP and exchange it at a trusted money exchange center in Dubai.
For a hassle-free experience, plan your expenses, use travel-friendly payment methods, and always compare exchange rates. Now that you know what is the best currency to take to Dubai, you’re all set to enjoy your trip without worrying about money matters!
Need more travel tips? Check out our guide on Dubai visa application fees for Indians or related FAQs below.
FAQs
The best currency to take to Dubai is the UAE Dirham (AED), as it is the official currency and accepted everywhere. However, if you cannot get AED in your home country, bring USD, EUR, or GBP and exchange it in Dubai for better rates.
The best currency to use in Dubai is AED (United Arab Emirates Dirham). Using AED helps you avoid extra currency conversion fees and ensures smooth transactions across the city.
While some hotels and major stores may accept USD, EUR, or GBP, they often apply higher exchange rates. It’s best to exchange your currency for AED at a trusted exchange center for better value.
You can exchange money at banks, exchange centers, hotels, and airports. The best places for currency exchange in Dubai include Al Ansari Exchange, UAE Exchange, and Al Fardan Exchange, as they offer competitive rates.
To get the best exchange rate in Dubai, compare rates at multiple currency exchange centers instead of exchanging money at airports or hotels, which often have higher fees.
If possible, exchange some AED before your trip for immediate expenses like transport. However, you may find better exchange rates in Dubai at dedicated exchange centers.
Yes, ATMs in Dubai allow international withdrawals. However, check with your bank for foreign transaction fees and ATM withdrawal charges. Using a travel-friendly card can help reduce extra costs.
The most convenient payment methods in Dubai include cash (AED), international debit/credit cards, and mobile payments (Apple Pay, Google Pay, and Samsung Pay). Most malls and restaurants accept cards, but carry some cash for local markets and taxis.
Some exchange houses may include hidden fees or unfavorable rates. To avoid this, always check the exchange rate before making a transaction and compare rates across different exchange centers.
It’s best to carry a mix of cash (AED) and international credit/debit cards. Use cash for small purchases, taxis, and local markets, while cards are widely accepted in malls, hotels, and restaurants.
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