Money in the UAE: dirhams, bank cards, transport payments and VAT refunds

The UAE uses one currency, but not one public-transport payment system. Dubai and Abu Dhabi have different transit cards, and the cheapest advertised hotel rate may not be the full amount you pay. A bank card handles much of an urban holiday; a small cash reserve and a little preparation make the remaining payments easier.

Dubai skyline, United Arab Emirates · Robert Bock · CC0

Meet the UAE dirham

The currency is the UAE dirham, abbreviated AED and often written Dhs or Dh on prices. One dirham contains 100 fils. Banknotes come in denominations of 5, 10, 20, 50, 100, 200, 500 and 1,000 dirhams; common coins include 25 fils, 50 fils and one dirham. Small notes are more convenient than a large note for a small purchase.

The dirham is pegged at AED 3.6725 per US dollar, but exchange counters and card issuers apply their own charges and margins. The converter on this page targets AED: select your source currency and enter an amount. Its indicative result is not a guaranteed cash-exchange quote.

Bank cards and a sensible cash reserve

International credit and debit cards are widely accepted at hotels, malls and many restaurants. Contactless payments and mobile wallets work where both your card and the merchant support them. Bring the physical card and know its PIN; a phone wallet may not meet a rental company’s deposit requirements.

Keep some small-denomination cash for markets, tips and a failed payment terminal. There is little benefit in carrying the entire holiday budget in cash. Start with a reserve suited to your party and reassess after a day. A second bank card stored separately is useful if the first is lost or blocked.

Choose AED at the payment terminal

A terminal offering your home currency is offering its own currency conversion. Choosing AED normally leaves conversion to your card issuer; compare your issuer’s fees before travelling. At an ATM, declining currency conversion does not necessarily remove a separate withdrawal fee. Read both amounts before confirming.

Use a bank ATM in a suitable public location, protect your PIN and do not accept unsolicited assistance. At an exchange counter, compare the actual dirhams received rather than a no-commission sign. Cash advances on a credit card can carry charges that do not apply to ordinary purchases.

Dubai transport: what nol actually is

RTA is Dubai’s transport authority. Its nol card is a reloadable transit card, not an ordinary bank card, used for the metro, tram and buses. The standard Silver card costs AED 25, including AED 19 of travel credit. Each fare-paying passenger needs their own transit card.

Buy or top up at station machines and counters, then tap in and out as indicated for the service. Check your balance before boarding and do not enter Gold Class using a Silver card. The S’hail app helps plan journeys; the nol Pay app supports card management and top-ups. An online top-up may need activation before use, so a successful bank-card charge does not by itself prove that the travel balance is ready.

Abu Dhabi buses use Hafilat

Hafilat is the reloadable card used to pay for Abu Dhabi bus journeys. Do not assume Dubai’s nol card works on these local services. Tap Hafilat when boarding and alighting so the correct journey is recorded. Arrange the card and sufficient credit before waiting at a bus stop.

An intercity bus from Dubai can have a different payment arrangement from the Abu Dhabi bus you board afterwards. Check the operator of your chosen route. Allow room in the budget for the final connection: a short distance on a map is not necessarily a comfortable walk in the heat.

Paying for taxis and app-booked rides

In the Careem app, Hala is an option for booking Dubai city taxis, distinct from other vehicle categories. Check the category, pickup point and selected payment method before ordering. Cash and digital options depend on the booking. Where payment is handled in the app, check before paying the driver a second time.

For a street-hailed taxi, confirm bank-card acceptance at the start and use the meter. Airport pickup, waiting and tolls may affect the total. Keep the receipt or app journey details, which also help if you leave something behind. Families should check seat and luggage capacity rather than assume every larger-looking vehicle will fit them.

Tips and service charges

Tipping is discretionary. At a table-service restaurant, around 10%–15% is a customary option for good service when no service charge has been added. Read the bill first and do not treat a suggested terminal percentage as compulsory.

Rounding up a taxi fare or leaving a small extra amount is an easy option. Small cash notes are useful for hotel staff. Distinguish tax, service charges and a voluntary tip when checking the bill; these are not interchangeable labels for the same payment.

VAT and hotel extras

The standard VAT rate is 5%. Ordinary consumer retail prices should include applicable VAT, so do not automatically add another 5% to every shop price. Ask for an itemised receipt if the checkout total differs from the displayed amount.

Accommodation can involve service charges and local levies as well as VAT. Dubai’s Tourism Dirham depends on the accommodation category. Check amounts marked payable at the property, the number of rooms and the total for the whole stay. A headline nightly rate is not enough for comparing otherwise similar bookings.

Arrange tax-free shopping before leaving the shop

Eligible non-resident tourists aged 18 or over can reclaim VAT on qualifying purchases registered through participating Planet Tax Free retailers. The current minimum is AED 250 before VAT per refund transaction. Present your passport and arrange the tax-free record in the shop; an ordinary receipt alone is insufficient.

Export validation must take place within 90 days of the invoice when departing the UAE. Keep the goods accessible before checking luggage. The refund is 87% of the VAT amount minus AED 3.60 per tax-free transaction, not 87% of the purchase price. Consumed meals, hotel stays and other services are not goods exported in your luggage.

Deposits and the real cost of a day out

A hotel or rental company may place a hold on your credit card. It is not necessarily a final charge, but it can reduce available spending capacity beyond checkout. Ask about the amount and release process and retain the return or checkout confirmation.

Compare accommodation after adding breakfast, parking and daily transport. For an attraction or guided excursion, check admission, pickup area and return arrangements. A cheaper ticket can become the more expensive choice if reaching the departure point requires two long taxi journeys.