When planning a trip to Dubai, it’s vital to comprehend the local currency and available payment methods to make your experience smoother. This Dubai Currency Guide will walk you through everything you need to know about the Dirham, as well as the various ways you can pay during your stay. Whether you’re considering a Dubai Tour Visa or seeking Visa Services in Dubai, being well-informed about the currency can enhance your travel experience.
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The Official Dubai Currency: The Dirham

The official currency of Dubai and the entire United Arab Emirates (UAE) is the Dirham, often abbreviated as AED, which stands for Arab Emirates Dirham. The Dirham is further subdivided into 100 fils. Banknotes are available in denominations of 5, 10, 20, 50, 100, 200, 500, and 1,000 AED, while coins come in denominations of 1 AED, and 25, 50 fils.
Understanding the Value of the Dirham

The Dirham is pegged to the US Dollar, with a fixed exchange rate of approximately 3.67 AED to 1 USD. This stable exchange rate makes it easier for travelers from many countries to understand the value of the Dirham relative to their own currencies. It’s consistently a good concept to check the recent exchange rates before your trip for any minor fluctuations.
Currency Exchange in Dubai

Currency exchange services are broadly available in Dubai. You can exchange your money at banks, hotels, and trustworthy currency exchange offices. However, currency exchange offices often offer better rates compared to hotels and banks. Some of the well-known exchange centers include Al Ansari Exchange and UAE Exchange. It’s advisable to exchange a small amount of money at the airport for immediate needs and then find a better rate in the city.
Using Credit and Debit Cards

Credit and debit cards are broadly accepted in Dubai, especially in hotels, restaurants, shopping malls, and larger stores. Visa and Mastercard are the most commonly accepted cards, but American Express and other international cards are also accepted at many places. However, it’s always wise to hold some cash for smaller organizations or markets that may not accept cards.
ATMs in Dubai

ATMs are abundant in Dubai, and most of them accept international cards. You can withdraw Dirhams using your credit or debit card, but be aware of any foreign transaction costs your bank might demand. ATMs are conveniently located at airports, shopping malls, hotels, and on the streets.
Mobile Payment Apps

Dubai is a tech-savvy city, and mobile payment apps are becoming increasingly popular. Apple Pay, Samsung Pay, and Google Pay are accepted at many establishments. Additionally, local apps such as Emirates NBD Pay and Mashreq Pay are also available, providing convenient cashless payment options.
Traveler’s Cheques

While traveler’s cheques used to be a popular way to carry money, their use has declined in recent years. Most establishments in Dubai do not accept traveler’s cheques, so it’s better to rely on cash, cards, or mobile payments for your transactions.
Tipping in Dubai

Tipping is not mandatory in Dubai but is appreciated for good service. In restaurants, a tip of around 10% is customary if service charges are not included in the bill. For hotel staff, porters, and taxi drivers, a small tip of a few Dirhams is considered polite.
VAT in Dubai

Dubai has a Value Added Tax (VAT) of 5% on most goods and services. However, tourists can get a refund on VAT for purchases made during their stay. To be eligible for a VAT refund, look for stores that display the “Tax-Free” logo and follow the refund process at the airport before departure.
Payment Methods for Public Transportation

Public transportation in Dubai, including the Metro, buses, and trams, uses a smart card system called the Nol Card. You can load the Nol Card with money and use it for convenient and cashless travel across Dubai’s public transport network. The Nol Card is available in different types, each suited to different types of travelers.
Also Read: What is an Tourist e-visa? Benefits, Process & Countries Offering e-Visa