You've booked your flights, reserved your hotel, and planned your trip up Burj Khalifa. With your Dubai holiday just weeks away, you're already thinking about packing your bag and getting your money sorted for the trip of a lifetime.
In your research so far, you've probably realised that Dubai, as part of the United Arab Emirates, uses the dirham as its official currency. Therefore, when searching for excursions and things to do in Dubai, you've probably seen services listed in AED.
To make your life easier, and save on some costs, you should order UAE dirhams online before you head to Dubai. Here, we explain how to get dirhams at a great rate and how much you can expect to spend on your upcoming vacation.
What is the dirham?
The dirham (AED) is the official currency of the United Arab Emirates. If you're planning a holiday or business trip to Dubai, Abu Dhabi, or any other Emirates, you'll need to bank some dirhams ahead of your trip to treat yourself to meals or buy essentials from the mall.
Though US Dollars (USD) are accepted in some parts of Dubai, it's best to travel with dirhams as you will get the best value for money, with shops and hotels using unfavourable exchange rates when accepting USD for goods and services.
Moreover, while you can certainly get by in the UAE with Apple or Android pay, having cash on holiday makes everything much easier. It means you don't have to worry about the exchange rate and foreign currency rates that your bank charges you for using your account overseas.
How is the dirham performing against the Pound?
Right now, the dirham is at AED 4.74 to £1.00. This is almost identical to the exchange rate in June 2023, highlighting that the dirham is a relatively stable currency. That said, in October 2023, the dirham dropped to 4.33 to £1.00 before recovering over six months.
To give you an idea of what you can buy in Dubai with AED 4.74, a bottle of water is roughly 4.50 AED in most shops. Given the soaring temperatures in the summer months, you'll probably find yourself buying more than one bottle when you arrive!
Where can you buy dirhams online?
As with all currencies, the dirham fluctuates throughout the year and is offered at different rates online. Using Compare Holiday Money, you can search for the best dirham exchange rate available today to lock in a great price.
We scour the market and compare the rates from all the UK's leading currency providers, doing all the hard work so you can find the sweetest deal on your currency exchange. This is one of the best ways to save money before leaving home, as you can ensure you get the best value on your exchange rate. You can refine your search and look for home delivery or store collection methods, and we also list how much the provider charges if delivery is an option.
While you can turn up to Dubai and use your credit or debit card abroad, you will miss out on competitive market rates and make your trip more expensive than it needs to be. And we don't recommend withdrawing cash once you're there from a cashpoint machine, as this will incur high charges.
Rough dirham costs for your Dubai holiday
Holidays to Dubai tend to be costly, and it consistently ranks as one of the most expensive places in the world to go for a break. Still, if you've saved up and snagged a good deal out of season, you can enjoy the luxury of Dubai without overspending.
Though everyone's trip will be different, preparing a rough budget to cover costs you might incur in one of the world's most glamorous cities is helpful. The table below will help you budget your dirhams throughout your trip:
| Description | Cost (AED) | Equivalent (GBP) |
|---|---|---|
| One night in a double occupancy hotel room | 1,247 | 263.08 |
| Daily transportation costs (ride shares, local buses, subway) | 47 | 9.92 |
| Average food price per day (mid-range breakfast, lunch, and dinner per person) | 204 | 43.04 |
| Daily budget for entertainment and activities while in Dubai | 70 | 14.77 |
| One beer at a bar | 45 | 9.49 |
| A bottle of water | 4.5 | 0.95 |
Source: https://www.budgetyourtrip.com/united-arab-emirates/dubai.
Of course, like many cities in the world, Dubai can be as cheap or as expensive as you make it. If you share a reasonably-priced Airbnb with friends, prepare your meals, and avoid drinking alcohol, a trip to Dubai doesn't need to be expensive.
But if you stay in a 5-star resort, eat out at fancy restaurants, and drink until the sun goes down (beware, it's illegal to be intoxicated in a public place), it will cost you a fortune! Therefore, you should use our table above as a rough guide for your budget and be flexible depending on what you get up to abroad.
Conclusion
Dubai might be one of the world's most expensive cities, but you can ensure great value for money by securing the best possible exchange rate when buying dirhams with GBP. Use Compare Holiday Money today to find the best UAE dirham rate and order your currency online before heading to the UAE this summer.