The official currency of Dubai is the Dubai Dirham (AED). As a global hub for business and luxury tourism, the city widely accepts the Dirham, reflecting its status as a key financial and commercial center in the United Arab Emirates.
The Dubai Dirham is available in various denominations, including banknotes and coins:
- Banknotes: Dirham banknotes come in denominations of 5, 10, 20, 50, 100, 500 and 1000 dirhams. These banknotes are widely accepted for various transactions, from shopping to dining and more.
- Coins: These are coins in common circulation, with values of 1 dirham, 50 fils and 25 fils. While coins are used for smaller transactions, banknotes are more common for everyday expenses.
It is helpful to be aware of the approximate exchange rates for the Dubai Dirham:
- 1 Dubai Dirham (AED) is approximately equal to 45 Indian Rupees (INR).
- 1 US Dollar (USD) is roughly equivalent to 67 AED.
- 1 UK Pound Sterling (GBP) totals around 80 AED.
- 1 Euro (EUR) is approximately 05 Emirati Dirham.
History of Currency of Dubai
The Dubai Dirham (AED) has a relatively short history, dating back to the early 1970s. It was officially issued a year after the formation of the United Arab Emirates in 1971. The first Dirham currency notes were issued in denominations of 1, 5, 10, 50 and 100. The 1000 Dirham denomination was introduced a few years later. These notes were later replaced by new currency notes with falcon watermarks and historical landmarks from each emirate.
Digital Transactions in Dubai
In recent years, Dubai has seen a significant increase in digital payments and a move away from cash transactions. Mobile payments and digital wallet services have gained popularity. This transition towards cashless transactions aligns with the UAE’s vision of becoming a cashless economy, thanks to the convenience, speed and efficiency of digital payments. Cybersecurity and fraud prevention measures have also been enhanced to ensure the security of digital transactions.