February 23, 2026
Methodology About Newsletter
WE THE UAE 2031
The Vanderbilt Terminal for the UAE's National Transformation
INDEPENDENT GLOBAL INTELLIGENCE FOR THE UNITED ARAB EMIRATES
UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% | UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% |

Definition

The UAE dirham (currency code AED, symbol: د.إ) is the official currency of the United Arab Emirates. It is subdivided into 100 fils. The dirham has been pegged to the United States dollar at a fixed rate of 3.6725 AED per USD since November 1997. This fixed exchange rate regime is maintained by the Central Bank of the UAE and provides monetary stability critical for the country’s role as an international trade and finance hub.

UAE Context

The dirham was introduced in 1973, replacing the Bahraini dinar in Abu Dhabi and the Qatar and Dubai riyal in the other emirates. The currency’s peg to the US dollar reflects the UAE’s deep economic ties to dollar-denominated oil markets and international trade. The Central Bank of the UAE manages monetary policy to maintain the peg, which requires aligning interest rates closely with US Federal Reserve policy. The dirham’s stability has been instrumental in attracting foreign investment, facilitating trade, and positioning Dubai and Abu Dhabi as global financial centers.

Key Data

  • Currency code: AED (Arab Emirates Dirham)
  • Peg rate: 3.6725 AED = 1 USD (fixed since 1997)
  • Issuing authority: Central Bank of the UAE
  • Subdivisions: 1 dirham = 100 fils
  • Denominations: Notes in 5, 10, 20, 50, 100, 200, 500, and 1,000 dirham

Significance for Vision 2031

The dirham’s stability underpins investor confidence and is essential to the UAE’s Vision 2031 ambitions in financial services, trade expansion, and foreign direct investment. As the UAE develops its fintech and digital payment ecosystems, the dirham serves as the foundation for initiatives including central bank digital currency (CBDC) exploration and cross-border payment modernization.