The dirham is pegged to the dollar so the rate never moves. VAT is 5 percent and refundable, and hotels add a nightly Tourism Dirham on top.
- The dirham has been pegged to the dollar at 3.6725 since 1997, so there is no exchange rate to time - it is the same today as last year.
- Change money in the city, not at the airport, where the spread is wide; Al Ansari and UAE Exchange branches are everywhere and near interbank.
- A quoted hotel rate can grow by 20 percent or more once 5 percent VAT, the municipality fee, the service charge and the Tourism Dirham are added. Ask for the total.
- The Tourism Dirham is per room per night and paid at checkout, from AED 7 in a hostel to AED 20 in a five-star, and is not in the booking price.
- Tip in cash: 10 to 15 percent in restaurants without a service charge, AED 5 to AED 10 for a porter. Most service staff are low-paid migrant workers, and cash reaches them where a card tip often does not.
The rate does not move
The dirham has been pegged to the US dollar at 3.6725 since 1997.
- You cannot time the exchange rate here. It is the same today as it was last year.
- Change money in the city rather than at the airport, where the spread is wide. Al Ansari and UAE Exchange branches are everywhere and give near-interbank rates.
- Cards work everywhere, contactless is universal, and Apple Pay and Google Pay are widely accepted.
- Carry AED 100 to AED 200 in small notes for taxis, abras, souks and tips.
- Always be charged in dirhams, not your home currency.
What gets added to your bill
| What | Rate |
|---|---|
| VAT | 5 percent |
| Tourism Dirham, 5-star | AED 20 per bedroom per night |
| Tourism Dirham, 4-star | AED 15 per bedroom per night |
| Tourism Dirham, 3 and 2-star | AED 10 per bedroom per night |
| Tourism Dirham, 1-star and hostels | AED 7 per bedroom per night |
| Municipality fee and service charge | Commonly 7 percent and 10 percent on hotel bills |
- The Tourism Dirham is charged per room per night and is usually paid at checkout, not included in the booking price.
- A quoted hotel rate can grow by 20 percent or more once VAT, municipality fee, service charge and Tourism Dirham are added. Ask for the total.
- Restaurant bills in hotels carry the same additions. A standalone restaurant usually does not.
Getting the VAT back
- Tourists can reclaim VAT on shopping taken out of the country, through the Planet system at the airport.
- You get 87 percent of the VAT paid, less a fixed fee of AED 3.6 per claim since 12 July 2026, down from AED 4.80.
- Ask for a tax-free tag at the till and keep the goods accessible for validation.
- Validate before check-in at the airport kiosks, and allow extra time.
Tipping
- 10 to 15 percent in restaurants where no service charge has been added. Where one has, rounding up is enough.
- AED 5 to AED 10 for a porter or a valet.
- Round up for taxis.
- Most service staff are low-paid migrant workers for whom tips matter considerably more than they do to a Dubai restaurant's margins. Cash reaches them; a card tip often does not.
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