About the UAE Dirham
The UAE dirham is the currency of the United Arab Emirates, issued by the Central Bank of the UAE. It has been pegged to the US dollar at 3.6725 dirhams per dollar since 1997.
Because of the peg, the dirham's rate against the euro, the pound or the yuan follows the dollar's rate against those currencies almost exactly. The central bank moves its interest rates in step with the US Federal Reserve to keep the peg in place.
The UAE's large oil revenues and foreign reserves have kept the peg stable for decades. Dubai and Abu Dhabi are regional hubs for trade, finance and tourism, so the dirham is widely used for payments across the Gulf.
Paying in AED
- IBAN
- UAE accounts are identified by an IBAN, which starts AE and is 23 characters long. For payments from abroad, use the IBAN together with the bank's SWIFT/BIC code.
- Purpose of payment
- UAE banks require a purpose-of-payment code on incoming and outgoing international transfers, such as payment for goods or salary. Have the purpose and supporting documents ready, as missing information is a common cause of delays.
- Domestic clearing
- Dirham payments between UAE banks go through the central bank's UAE Funds Transfer System. Aani, the UAE's instant payment platform launched in 2023, sends payments within seconds, 24 hours a day.
- Working week
- The UAE moved its weekend to Saturday and Sunday in 2022, so UAE banking days now line up with Europe and the US.
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