Money in Dubai: currency, paying by card or cash, and tipping

The UAE dirham (AED) at a glance

Dubai uses the UAE dirham, shown on price tags, menus and official fare tables as AED. You will also see it written locally as Dhs or DH. Government pages, including the Roads and Transport Authority's fare tables and the Federal Tax Authority's VAT calculator, quote amounts in AED, so it is the only currency you need to think in while you are here.

Exchange rates between the dirham and your home currency are set by your bank, card network or exchange house at the moment you pay, and they change. Rather than relying on a rate you remember, check the live rate in your banking app before you travel and again before any large purchase or exchange. This guide deliberately does not quote an exchange rate, because any figure printed here would soon be out of date for your currency.

• Currency: UAE dirham, code AED (also written Dhs or DH)
• Prices, fares and taxes on official pages are quoted in AED
• Check a live rate in your bank or card app rather than a remembered figure

Banknotes, coins and carrying small change

You will mostly handle dirham banknotes, plus a few coins as change. It is worth taking a moment to look at each note when you are given change, especially in dim light, in a busy market or when you are in a hurry.

The practical point is to keep some small notes. A traditional abra across Dubai Creek costs a single dirham, paid in cash, and market stalls, small grocery shops and cafeterias are much easier to deal with when you are not trying to break a large note. If you withdraw cash from an ATM, a request for an amount that is not a round large figure often produces smaller notes, and any bank branch or exchange house can usually break larger ones.

Cards, contactless payment and phone wallets

Visa and Mastercard are the safest choice for a visitor: they are accepted in malls, hotels, attractions, restaurants and most shops, and contactless tapping is common. Other networks are accepted in many larger venues but not everywhere, so if your main card is on a less common network, bring a Visa or Mastercard as a backup and keep it separate from your main card.

Phone wallets work wherever a terminal accepts contactless cards. Even airport taxis run by Dubai Taxi accept a wide range of methods: the company lists cash, credit cards, the Nol card, Careem Pay, Apple Pay, Samsung Pay, Alipay and QR code payment for its airport service. For a wider look at booking and paying for cabs, see our taxis and ride-hailing guide.

Before you leave home, confirm that your cards are enabled for use abroad, that you know your PIN, since ATMs and some terminals will ask for it, and what your bank charges for foreign transactions and withdrawals. A card with no foreign transaction fee can make a noticeable difference over a week of everyday spending.

Choose dirhams when a terminal offers your home currency

At some card terminals and ATMs you will be asked whether you want to pay in your home currency or in dirhams. This offer is called dynamic currency conversion. It looks convenient because you see a familiar number, but the exchange rate is chosen by the merchant's or ATM operator's provider, not by your own bank, and it usually includes a margin.

The simple rule is to choose AED every time. Your card issuer will then convert the amount at its own rate, which you can check in your banking app. If a cashier selects your home currency for you, it is reasonable to ask them to cancel and run the payment again in dirhams before you sign or enter your PIN.

• Screen offers your home currency or AED: choose AED
• ATM offers a guaranteed conversion rate: decline it and continue in AED
• Check the receipt shows the amount in AED

Using ATMs and exchange houses

ATMs from local banks are easy to find in malls, at the airport and around metro stations. Most accept international cards on the main networks. The ATM operator may add its own fee on top of your bank's charge, and the machine should display it before you confirm; if it does not, or the fee looks high, cancel and try another bank's machine.

Use ATMs inside malls, bank branches or well-lit, busy areas, cover the keypad when you enter your PIN, and do not accept help from strangers at the machine. If an ATM keeps your card, contact your bank straight away using the number on the back of your card or in its app.

Licensed exchange houses are common in malls and older commercial districts such as the areas around the souks. Rates and fees differ between counters, so compare the total number of dirhams you will receive for your money rather than the headline rate on the board, and count the cash before you leave the counter.

When cash is still the easier option

Cash is no longer essential for most of a visit, but a modest amount in small notes is still useful. The clearest example is the traditional abra across the Creek: the Roads and Transport Authority lists the Bur Dubai to Deira Old Souq crossing at AED 1 per passenger per trip, paid in cash. Our guide to the historic district, Creek and souks covers that area in detail.

In traditional markets, many larger shops take cards, but small stalls and quick purchases are simpler with cash, and having the right change makes bargaining easier. Our malls and souks guide explains where each kind of shopping happens. Small cafeterias, bakeries, laundries and corner shops may also prefer cash, and cash is handy for small tips.

• Traditional abra across the Creek (cash fare)
• Small souk stalls and street-side purchases
• Corner shops, cafeterias and small service businesses
• Small tips for porters, drivers and delivery riders

Paying for taxis and public transport

Public transport uses the Nol card rather than a bank card at the gates. The Roads and Transport Authority describes Nol as a smart card that lets you pay with a single tap on the Dubai Metro, buses, Dubai Tram and marine transport such as Dubai Ferry, Dubai Water Taxi and Dubai Abra, as well as RTA paid parking; it can also be used for small purchases at some retailers. The RTA lists the Silver Nol card at AED 25, which includes AED 19 of credit.

Dubai Airports says Nol cards are available for guests in Gold and Silver types, and that Metro Red Line passes are sold at ticket offices and vending machines in DXB Terminals 1 and 3. Our Nol card and public transport guide explains card types and topping up, and our airport arrival guide covers what to sort out when you land.

Taxis are metered. Dubai Taxi says its airport taxi receipts show the trip date, pick-up and drop-off locations and times, the vehicle's plate or side number and the total fare according to the meter, so ask for a receipt if you may need to report a problem or find something you left behind.

VAT and service charges on receipts

The UAE applies value added tax, and the Federal Tax Authority's own calculator works it out at 5%. On a receipt or tax invoice, VAT is normally shown as its own line or stated as included in the total. Many shops and casual restaurants display prices that already include VAT, while others list prices before tax and add it at the till.

Some restaurants, particularly in hotels, also add a service charge or other fees as separate lines on the bill. The menu footer usually says whether prices are inclusive or which charges will be added. Read the bill before you pay, ask staff to explain any line you do not recognise, and only then decide whether to leave a tip on top. Our dining and restaurant guide covers booking, menus and what to expect at different kinds of venues.

• VAT: 5%, shown as a line or stated as included
• Service charge: added by some venues, often in hotels
• Check the menu footer to see what is included
• Ask about any unfamiliar line before paying

Tipping: restaurants, taxis, hotels and tours

Tipping in Dubai is discretionary. None of the official pages we reviewed sets a tipping requirement for visitors, nobody should insist on a tip, and you should not feel obliged to tip for poor service. That said, tipping for good service is common and appreciated, and because you usually cannot tell how a service charge is shared among staff, many visitors give a little extra directly to the person who served them.

As rough customs rather than rules: leave small change or a few dirhams after a cafe visit or casual meal, and around 10% at a sit-down restaurant if service was good and no service charge appears on the bill. Taxi passengers often round the metered fare up or leave the change. In hotels, a few dirhams per bag for porters and a small amount for housekeeping are usual gestures. For a private driver or a guide on a full-day tour, a larger tip at the end of the day is a reasonable thank-you if you were pleased. Many delivery apps let you add a tip in the app.

Hotel and car rental deposits

Hotels commonly ask for a card at check-in to cover incidentals such as minibar, room service or damage, and may place a temporary hold, called a pre-authorisation, on your credit limit. The hold is not a charge, but it reduces the credit you can use until it is released, and the release can take several days depending on your bank. Ask at check-in how much will be held and how long it lasts, and keep enough spare limit for the rest of your trip. Our hotel booking and area guide explains how to compare the full cost of a stay.

Car rental companies usually take a deposit or a card hold as well, and it may stay in place for some time after you return the car while the company checks for fines, tolls or damage. Read the rental terms before you book and use a credit card rather than a debit card if you can, so that a hold does not lock up cash in your current account. Our car rental and driving guide covers tolls, parking and rental checks.

Carrying large amounts of cash: the AED 60,000 threshold

Most visitors carry far less cash than this, but it matters if you are travelling with a large sum. Dubai Customs lists cash money, currencies and travellers' cheques worth less than AED 60,000 in total among the items a passenger may bring in, and states that the passenger must be at least 18 years old.

The limit applies to the combined value of all cash, currencies and travellers' cheques you carry, not to each currency separately. If you plan to carry an amount at or above that level, check Dubai Customs' current requirements for declaring it before you fly rather than at the airport. For most trips, a card plus a modest amount of cash avoids the question entirely.

Scams and card security

Card fraud aimed at visitors usually relies on rushing you. Be wary of unexpected calls, text messages or social media messages that claim to be from a bank, an airline, a delivery company or the police and ask for card details, a one-time password or a payment to unblock something. A real bank will not ask you to read out a one-time password. Hang up and contact your bank using the number printed on your card or shown in its official app.

Keep your card in sight when you pay, check the amount on the terminal before you tap or enter your PIN, and turn on payment notifications in your banking app so you see every transaction as it happens. Be cautious with links in messages offering prizes, refunds or fines to pay, and only book tours and transfers through operators you can verify.

If a card is lost, stolen or shows a payment you do not recognise, freeze it in your bank's app or call the bank immediately. A second card kept in your hotel safe means you can keep paying while the first one is replaced.

• Never share a one-time password or your PIN
• Call your bank on the number printed on your card
• Turn on instant payment notifications
• Keep a backup card in a separate place

VAT refunds and keeping receipts

Keep receipts for larger purchases until your card statement arrives, and check that each one matches the amount in dirhams you agreed to. Receipts matter twice if you shop: according to the Federal Tax Authority, the UAE's tax refund scheme for tourists lets eligible visitors request a refund of the VAT paid on their local purchases.

To claim, you need to buy from participating retailers and validate the purchase before you leave the country. Our tourist VAT refund guide walks through who is eligible, what to ask for at the till and how validation works at departure.

Pre-departure money checklist

Use this short list in the week before you fly. It pairs well with our first-time Dubai checklist and, if you want to pay with your phone and receive bank alerts while you are away, our guide to phones, SIMs and connectivity.

Fees, fares and payment options change, so check your bank, the venue or the official sources below for anything that matters to your budget.

• Tell your bank you are travelling and confirm cards work abroad
• Check foreign transaction and ATM fees; carry a backup card on another network
• Know your PIN and save your bank's emergency number off your phone
• Plan to choose AED whenever a terminal offers a currency choice
• Keep a modest amount of cash in small notes for abras, souks and tips
• Buy a Nol card on arrival if you will use the Metro, tram, buses or ferries
• Leave enough credit limit for hotel and car rental holds
• Keep receipts for VAT refunds and statement checks