Exchange Rates in Dubai – What You Need to Know

If you’re heading to Dubai, the first thing on most checklists is figuring out the money side. The UAE dirham (AED) is the local currency, and knowing where to get a fair rate can save you a lot of hassle and extra cash.

Most visitors start with their home bank’s card or a travel‑money service. That works, but you’ll often pay hidden fees or get a less‑than‑ideal rate. Below you’ll see the simplest ways to lock in a good exchange rate, plus a few tricks to keep extra charges at bay.

How to Get the Best Rate

1. Use local banks. Emirates NBD, Abu Dhabi Commercial Bank, and Mashreq have branches in malls and near the airport. Their rates are usually the most competitive, especially if you exchange a larger amount in one go.

2. Check the airport counters. The Dubai International Airport has several currency exchange kiosks. Their rates are decent for small amounts, but wait until you’ve cleared customs – some kiosks are cheaper on the arrivals side.

3. Try ATMs. Pulling cash directly from an ATM often gives a rate close to the interbank market. Look for machines labeled “Bank of Dubai” or “Emirates NBD”. Remember to choose “local currency” when prompted, not your home currency.

4. Use reputable money‑exchange apps. Apps like Revolut, Wise, and CurrencyFair let you lock in rates before you travel. Transfer the money to your UAE bank account or use the app’s card at local merchants.

5. Shop around. Small exchange bureaus in Souk Al Bahar or Al Seef sometimes post better rates than big banks, especially for amounts under 1,000 AED. Compare the posted rates and ask about any commission.

Common Mistakes and How to Avoid Them

Don’t exchange money at hotels – they usually add a hefty markup. If you need cash right away, a few hundred AED from a hotel desk is okay, but plan to get the bulk elsewhere.

Never accept to be “charged in your home currency” at a shop or restaurant. That’s called dynamic currency conversion, and it adds an extra spread that can be as high as 5 %.

Watch out for hidden fees on credit‑card transactions. Some cards treat foreign purchases as cash advances, which triggers higher interest and fees. Ask your bank if your card is set up for “no‑foreign‑transaction fees”.

Finally, keep an eye on the market. The AED is pegged to the US dollar, so big swings are rare, but regional news can affect the exact rate you see at a bureau. Checking an up‑to‑date exchange‑rate website before you go gives you a solid benchmark.

Bottom line: use local banks or ATMs for the best rates, avoid dynamic currency conversion, and don’t rely on hotels for large exchanges. With these tips, you’ll have the right amount of dirhams without losing extra money to hidden costs.