What is AED (United Arab Emirates Dirham)? Definition
The United Arab Emirates dirham, the official currency of Dubai and the other Emirates, is abbreviated as the AED. The symbol Dhs or DH is frequently used. Since 1973, when it replaced various currencies, including the Dubai riyal and the Qatar riyal, the United Arab Emirates Dirham has been in circulation.
Main points to remember about AED
- The United Arab Emirates' currency is the dirham.
- There are 100 fils in 1 Dirham.
- It is tied to the US dollar and is one of the most stable currencies in the world.
AED fundamentals (United Arab Emirates Dirham)
The dirham is made up of 100 fils in the United Arab Emirates. The dirham is available in the following denominations: 5, 10, 20, 50, 100, 200, 500, and 1,000. The coin denominations are 1, 25, and 50 fils, however it's worth noting that coins worth less than 10 fils are uncommon.
The UAE's banknotes are issued by the Central Bank of the UAE. Several watermarks, including the national emblem on the obverse of each note, are employed to prevent counterfeiting. Any action "deemed an insult" to the national insignia, including counterfeiting, is a serious offence.
The insignia is a golden falcon with a disc in the middle encircled by seven stars and seven feathers, one for each of the seven Emirates.
The UAE's Economy and the AED
In 2019, the United Arab Emirates had a gross domestic output of around $421 billion, placing it 25th on the World Economic Forum's Global Competitiveness Index. With the exception of Dubai, the emirates rely heavily on oil exports and natural gas deposits, while diversification efforts have been ongoing. In terms of currency stability, investors consider the UAE dirham to be one of the world's most stable currencies. Since 1997, it has been tied to the US dollar at a rate of one US dollar to three and a half AED.
Because of the country's reliance on the oil sector, policymakers believe that pegging the currency to the US dollar is favourable. Keep in mind that oil prices are in US dollars. The UAE government can limit the volatility of its exports by pegging its currency against the greenback. To sustain the peg, the country's economic statistics and current account balance should be kept at appropriate levels. For example, the UAE government is operating a current account surplus in relation to its GDP.
However, the peg may also be used to undermine government policy. Oil prices, for example, fell in 2015, reducing income for GCC countries. Many nations debated weakening their currencies in relation to the US dollar. Because US money obtained from oil sales could be repatriated for more dirhams, the depreciation would improve local revenue.Tweets by FXStreetNews Tweets by financemagnates
Learn more about online trading brokers for UAE citizens and residents.
Best Online Brokers for trading Forex, Bitcoin, CFDs and Stocks in the UAE
Here is a list of top online brokers to open an account for trading Forex, Bitcoin, CFDs and Stocks in the UAE. These brokers have above-average reviews on sites like Reddit, Quora and Trustpilot; and are totally legit, safe and trustworthy for UAE citizens and residents.
The brokers listed on this webpage accept clients from within the United Arab Emirates. Most of these companies provide an online trading platform for fiat currencies (such as Pound Sterling, the Euro, the US dollar, Japanese Yen etc.), buying and selling of cryptocurrencies (for example Bitcoin, Ethereum, Tether, XRP etc.), stocks (this includes listings on Abu Dhabi Securities Exchange, Borse Dubai, Dubai Mercantile Exchange, Dubai Financial Market and NASDAQ Dubai), CFDs (Apple, Microsoft, Amazon, Google, Tesla etc.), UAE government and corporate bonds, and short-term to long-term fixed income securities.
- Olymp Trade - People simply love this one (Olymp Trade Review)
- Binance - World's largest cryptocurrency e-wallet and exchange that also has an online trading platform, where their members can invest or trade in virtually hundreds of cryptocurrencies and new tokens. (Binance Review)
- IG Markets UAE - UK broker located at Tower 2, Level 27, Al Fattan Currency House, DIFC. (IG Markets UAE Review)
- City Index Middle East - London-city broker with a branch in the UAE. (City Index Middle East Review)
- eToro - Social trading platform, but much better options are available out there. (eToro Review)
- Swissquote - It's a Swiss bank that offers an online trading platform for forex and CFD trading. (Swissquote Review)
- easyMarkets - Israeli brand that is big all over. (easyMarkets Review)
- OANDA - American broker that is now spreading its wings. (OANDA Review)
- Forex.com - Google ranks them in the top 10 for the term "forex". (Forex.com Review)
- Plus500 - UK brand that has its own platform, OK for CFDs, with mediocre reviews. (Plus500 Review)
- AvaTrade - Regulated by ADGM's Financial Services Regulatory Authority (FSRA) in Abu Dhabi. (AvaTrade Review)
- FXCM.com - Oldest brand when it comes to retail online forex trading. (FXCM.com Review)
- Mashreq Neo - An online trading platform provided by Mashreq Bank. (Mashreq Neo Review)
- ForexTime (FXTM) - Owned by Andrey Dashin from the Alpari broker fame. (ForexTime FXTM Review)
- Noor Capital - Licensed and Regulated by the UAE Central Bank and SCA. (Noor Capital Review)
- XM.com - XM broker is big in Africa and South East Asia, and now promoting themselves hard in the UAE. (XM.com Review)
- Saxo Bank - Danish Investment Bank with a long history of catering for premium forex investors. It also provides crypto trading facility. (Saxo Bank Review)
- Pepperstone - Originally Australian, but licensed locally by Dubai Financial Services Authority. (Pepperstone Review)
- ADSS - Based out of Abu Dhabi and regulated by the Central Bank of the United Arab Emirates. (ADSS Review)
- CMC Markets - UK-based broker that is popular among CFD traders. (CMC Markets Review)
- Orient Finance - Local online-trading broker that caters to novice traders looking to invest in the foreign exchange markets. (Orient Finance Review)
- Alfa Financial - Their office is located at City Centre Deira on Port Saeed Road; and generally tends to attract investors within Dubai. (Alfa Financial Review)
- One Financial Markets - Local forex broker with an office at Dubai International Financial Centre at Index Tower. (One Financial Markets Review)
- Amana Capital - A broker located at Central Park Towers, Dubai International Financial Center. (Amana Capital Review)
- ETX Capital - UK broker that has a decent reputation among Arab investors. (ETX Capital Review)
- Century Financial - Old online-trading broker with an office at Level 6, Building 4, Emaar Square, Downtown Dubai. (Century Financial Review)
- IFCM UAE - Nothing special about IFC Markets, but it does have a dedicated .AE website for UAE clients. (IFCM UAE Review)
- EARNEX - This one is present at Jumeirah Lakes Towers and is licensed by the SCA. (EARNEX Review)
- Interactive Brokers - American online-trading broker that is expanding into Asian and Arab markets nowadays. (Interactive Brokers Review)
- Rakuten Securities - Japanese broker that usually looks out for large institutional investors. (Rakuten Securities Review)
- Dukascopy Bank SA - Swiss bank that offers online forex trading on its own proprietary platform. (Dukascopy Bank SA Review)
- Gulfbrokers ae - Dubai Multi Commodities Centre (DMCC) regulates this broker, but there nothing extraordinary about this brand. (Gulfbrokers AE Review)
- IQ Option - It's a below-average broker with no Dubai office, but does have a toll-free virtual number for UAE: 800 032 0891 -> No Arabic, English only. (IQ Option Review)
Reviewed by Arpita Singh
Arpita Singh is the main writer at ForexBroker.ae. As a senior investment professional with 10+ years of experience working at top-tier Private Equity and Sovereign Wealth Fund; she is also responsible for fact-checking concepts, reviews, and related details about brokers and exchanges listed on this website. Full Bio.