Convert US Dollars to UAE Dirhams instantly. The AED is pegged to USD at exactly 3.6725 since 1997 — the most stable major currency pair in the world. Also includes AED to INR cross rate for Indian NRIs in Dubai and Abu Dhabi.
AED is pegged — the mid-market rate is always ~3.6725. Exchange bureaus in UAE may charge a small spread (0.5–1.5%) on top.
| USD Amount | AED (Peg Rate) | Exchange Bureau (~1%) | Airport (~2.5%) |
|---|
| AED Amount | USD (peg rate) | Exchange (~1%) |
|---|
USD/AED rate itself is fixed — but when you convert AED to other currencies (INR, GBP, EUR, PKR), the cross rate matters. Options for UAE residents sending money home.
The UAE Central Bank officially pegged the dirham to the US dollar at 3.6725 AED per USD in November 1997 — and has maintained this rate unchanged for nearly three decades. Unlike other pegged currencies (Saudi riyal, Bahraini dinar), the UAE has never devalued or adjusted the peg. The 2026 range was just 3.6699–3.6732 — a variation of less than 0.1%. This is the world's most stable major currency pair. You never need to "time" a USD→AED conversion.
The peg is backed by the UAE's massive USD reserves, funded by oil revenues. Abu Dhabi's ADNOC and the broader UAE produce ~4 million barrels/day, generating enormous USD inflows. Abu Dhabi Investment Authority (ADIA) — the world's 3rd largest sovereign wealth fund (~$900 billion) — further backstops the peg with ample reserves. The Iran war oil spike in 2026 has actually strengthened the UAE's fiscal position, giving the peg even more support.
India receives more remittances from the UAE than from any other country. ~3.5 million Indians live in the UAE (the largest expat community). In FY2025, Indians in UAE sent approximately $20+ billion to India — around 20% of India's total global remittances. The AED/INR rate (which moves with USD/INR since AED is pegged) directly affects ~3.5 million Indian families. In May 2026 with USD/INR at ₹95, the AED/INR rate is approximately ₹25.87.
Because AED is pegged to USD, the UAE Central Bank (CBUAE) must mirror Fed rate decisions to maintain the peg. When the Fed raised rates to 4.25-4.50%, the CBUAE raised the UAE's overnight deposit rate in lockstep. UAE banks offer savings/term deposit rates closely matching US rates. This means UAE residents and businesses effectively import US monetary policy — a key trade-off of the peg. The benefit: no exchange rate uncertainty for oil sales (priced in USD) or the massive USD-denominated trade flows.
Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) position the UAE as a top-5 global financial centre. The stable AED peg is a key attraction for businesses and investors — no currency risk when operating in UAE vs US. The dirham is fully convertible with no capital controls. UAE's non-oil GDP grew ~4.5% in 2025, driven by tourism, financial services, tech, and logistics — diversifying away from oil dependency.