The Type of Currency Used in Dubai and UAE

The United Arab Emirates Dirham was introduced December 1971. It replaced the Qatar and Dubai riyal. The Qatar and Dubai riyal had circulated since 1966 in all of the emirates except Abu Dhabi, where the Dirham replaced the Bahraini dinar.

Before 1966, all the emirates that eventually formed the UAE used the Gulf Rupee. As in Qatar, the Emirates briefly adopted the Saudi Riyal during the transition from the Gulf Rupee to the Qatar and Dubai Riyal.

Fun fact: the name Dirham derives from the Greek word Drachmae, literally meaning "handful", through Latin.

Since November 1997, the Dirham has been pegged to the 1 US Dollar = 3.6725 Dirhams, which translates to approximately 1 Dirham = 0.272294 US Dollar. Most world currencies are not pegged to the dollar and so their exchange rate with the Dirham fluctuates daily.

Coins used in Dubai and UAE

In 1973, coins were introduced in denominations of 1, 5, 10, 25, 50 fils, and 1 Dirham. The 1, 5 and 10 fils are struck in bronze, with the higher denominations in cupro-nickel. The fils coins were same size and composition as the corresponding Qatar and Dubai Dirham coins. In 1995, the 50 fils and 1 Dirham coins were reduced in size, with the new 50 fils being curve-equilateral-heptagonal shaped.

The value and numbers on the coins are written in Eastern Arabic numerals and the text is in Arabic. The 1, 5 and 10 fils coins are rarely used in everyday life, so all amounts are rounded up or down to the nearest multiples of 25 fils. The 1 fils coin is a rarity- if you find one keep it! In making change there is a risk of confusing the old 50 fils coin for the modern 1 Dirham coin because the coins are almost the same size.

Notes used in Dubai and UAE

In 1973, the U.A.E. Currency Board introduced notes in denominations of 1, 5, 10, 50, 100 and 1000 Dirham. A second series of note was introduced in 1982 which omitted the 1 and 1000 Dirham notes. 500 Dirham notes were introduced in 1983, followed by a one off 200 Dirham in 1989. 1000 Dirham notes were reintroduced in 2000 along with new 200 Dirham notes in 2008. 2011 saw the introduction of a new 500 Dirham note with enhanced security features.

Banknotes are currently available in denominations of:

• 5 - brown
• 10 - green
• 20 - light blue
• 50 - purple
• 100 - pink
• 200 - yellow/brown
• 500 - navy blue
• 1000 - greenish blue

The obverse texts are written in Arabic with numbers in Eastern Arabic numerals; the reverse texts are in English with numbers in Arabic numerals.

There are a number of banks and money exchanges across Dubai where currency can be exchanged - not just for AED, but all world currencies. These money exchanges are located all of the city, but if you're new to the city or a tourist, it's probably easier to just head to your nearest Dubai shopping mall.

Money exchanges typically offer better rates than banks, and airport rates are less competitive than in the city. Exchange rates at Dubai hotels are generally poor, so a top tip for anyone just landing in Dubai is to change a small amount at the airport to cover your taxi fares and any food costs before heading to one of the money exchanges located across the city.

Some of the most well known exchanges in Dubai are:

• Al Ansari Exchange
• Al Rostamani International Exchange
• Al Ghurair Exchange
• Al Fardan Exchange