Is It Better to Use USD or AED in Dubai?

By Alice Nichols

When traveling to Dubai, one of the most frequently asked questions is whether it’s better to use USD or AED. The answer, like most things in life, is not black or white. It depends on various factors, and we’ll discuss them in this article.

Factors to consider

Exchange rate

The exchange rate of USD to AED varies regularly. Therefore, it’s essential to check the current exchange rate before deciding which currency to use. As of September 2021, $1 equals approximately 3.67 AED.

Merchant acceptance

Most merchants in Dubai accept both USD and AED. However, some may only accept one currency or offer a lower exchange rate for the other currency. It’s always best to ask before making any purchases.

Transaction fees

Using a credit card can result in additional transaction fees if you’re paying in a foreign currency. These fees can add up quickly and make your purchases more expensive than they need to be.

Pros and cons of using USD

Pros

  • If you’re from the United States, using USD means you don’t have to worry about exchanging your money.
  • If you have leftover USD from a previous trip, you can use it in Dubai.
  • If you’re traveling to multiple countries on your trip, it may be more convenient to stick with one currency instead of exchanging money multiple times.

Cons

  • The exchange rate for USD may not be as favorable as AED when converting your money.
  • Some merchants may offer a lower exchange rate for USD compared to AED.
  • You may have to pay additional transaction fees if you’re using a credit card.

Pros and cons of using AED

  • The exchange rate for AED may be more favorable than USD when converting your money.
  • Using the local currency can give you a better sense of the cost of items in Dubai.
  • You may avoid additional transaction fees if you’re paying in AED with a credit card.
  • If you’re not from the UAE, you’ll have to exchange your money before arriving in Dubai, which can be inconvenient.
  • If you have leftover AED at the end of your trip, you’ll have to exchange it back to your home currency, which can result in additional fees.

Conclusion

In conclusion, whether it’s better to use USD or AED in Dubai depends on various factors such as the exchange rate, merchant acceptance, and transaction fees. It’s always best to do your research and decide which currency will work best for your specific situation. However, if you’re still unsure, it’s always a good idea to carry both currencies with you just in case.