If you’re travelling to Dubai, understanding the local currency before you arrive will make everything smoother once you’re there. Dubai is modern, international and very visitor friendly, but the way money works can still catch people out if they assume it operates like Europe or the UK.
Dubai is part of the United Arab Emirates, and while it’s known for luxury shopping and global tourism, it has its own rules, customs and official currency. Knowing what to use, how to pay, and when cash is useful will help you avoid confusion and unnecessary fees.
So first, the obvious question:
What Is the Official Currency in Dubai?
Dubai uses the United Arab Emirates dirham. You’ll usually see it written as AED or simply referred to as the dirham.
Prices may also be shown using the symbol د.إ, especially on receipts or official documents, but tourists will mostly encounter AED in hotels, shops and currency exchanges.
The dirham is divided into 100 fils. Banknotes are available in denominations such as 5, 10, 20, 50, 100, 200, 500 and 1,000 dirhams. Coins exist in smaller values, although in everyday use you’ll mostly deal with notes and card payments.
The dirham is a stable currency and is pegged to the US dollar, which helps keep exchange rates predictable. This stability makes budgeting easier when planning a trip.
Can You Use Other Currencies in Dubai?
Although Dubai is extremely international, the dirham is the currency you are expected to use.
Some hotels, large shopping malls and tourist attractions may accept foreign currencies such as US dollars or euros, but this is not guaranteed and usually comes with a poor exchange rate. Change is almost always given in dirhams.
Relying on foreign currency is not recommended. Smaller shops, taxis, public transport and everyday services expect payment in dirhams, and using anything else can quickly become inconvenient.
If you arrive with pounds, euros or dollars, it’s best to exchange them into dirhams or withdraw cash locally rather than trying to spend foreign currency directly.
Paying by Card in Dubai
Paying by card in Dubai is very easy and widely accepted. Credit and debit cards are used everywhere, from restaurants and cafés to taxis, supermarkets and attractions.
Contactless payments are common, and mobile payment services work well across the city. For most visitors, card payments will cover the majority of spending without any issues.
That said, it’s still worth having some cash. Small tips, local markets, valet parking and certain services may prefer cash, even if card payment is technically available.
As with other destinations, you may occasionally be offered the choice of paying in pounds instead of dirhams when using your card. Always choose dirhams. Letting your bank handle the conversion usually gives a better rate.
Using Cash in Dubai
Cash is still pretty useful in Dubai, even though card payments are more common. Having some dirhams on hand makes everyday situations simpler and avoids relying entirely on your card.
ATMs are common in most places, including shopping malls, hotels, airports and petrol stations. Withdrawing cash locally is usually straightforward and secure.
When using an ATM, you may be offered dynamic currency conversion. This means the machine converts the amount into pounds before charging you. Declining this option and choosing to be charged in dirhams almost always works out cheaper.
Currency exchange offices are common in malls and busy areas, but Travel Cash offers better rates with 0% commission. Compared to some destinations, Dubai’s exchange offices are generally reliable, but it’s still wise to convert before travelling, and check the rate before exchanging larger sums.
Tipping and Everyday Spending
Tipping in Dubai is appreciated but not expected in the same way it is in some other countries. Many restaurants include a service charge, especially in hotels, but staff still appreciate a small extra tip for good service.
In restaurants, rounding up the bill or leaving around ten percent is common if service has been good. Taxi drivers do not expect tips, but rounding up the fare is normal. Hotel staff such as porters or housekeeping may receive small cash tips.
In terms of everyday costs, Dubai can vary hugely depending on how you spend your time. Local cafes, supermarkets and public transport are reasonably priced, while fine dining, beach clubs and luxury experiences can be expensive.
Knowing the currency and having a rough sense of value helps you make better decisions, especially in tourist areas where prices can climb quickly.
Should You Exchange Money Before You Travel?
For UK travellers, is it not necessary, but usually a good idea to exchange dirhams before leaving. Exchange rates at Travel Cash UK bureaus are usually more favourable, although Dubai has excellent access to ATMs and exchange services.
Using a debit card with low foreign transaction fees is often the easiest and most cost effective option. Carrying a small amount of cash for arrival can be useful, but it’s not essential.
It’s also sensible to carry more than one card, just in case. While Dubai is very card-friendly, having a backup avoids stress if one card is blocked or doesn’t work.
Public Transport and Payments
Dubai’s public transport system, including the metro, trams and buses, uses a travel card rather than cash payments. You’ll need to purchase and top up a Nol card, which is paid for using dirhams.
Taxis usually accept both cash and card, but having cash can be helpful during busy periods or if card machines are temporarily unavailable.
A Few Practical Money Tips for Dubai
Dubai is very safe, but it’s still sensible to treat money with care. Avoid carrying large amounts of cash, and use hotel safes where available.
Receipts are often itemised clearly, which helps you understand pricing and taxes. VAT is applied to many goods and services, so prices may be slightly higher than expected at the till.
It’s also worth remembering that Dubai is part of a Muslim country, and while tipping and spending are relaxed, respectful behaviour is always expected.
Dubai uses the United Arab Emirates dirham as its official currency. While card payments are widely accepted and convenient, having some dirhams in cash makes everyday situations easier.
Foreign currencies are not commonly used for normal spending, and paying in dirhams usually gives better value. With a debit card, a small amount of cash, and a basic understanding of the currency, managing money in Dubai is simple and stress-free.
Once you’re there, you’ll find that payments are smooth, prices are clearly displayed, and the city is well set up for international visitors. Knowing the currency before you arrive just helps you settle in faster and focus on enjoying your trip.
