What currency does the UAE use, and is it pegged to the dollar?
The UAE's currency is the dirham (AED), divided into 100 fils. It has been pegged to the US dollar at a fixed rate for decades, so its value against other currencies follows the dollar. Our site shows this as a fixed rate rather than a market rate.
Cards and contactless phone payments are accepted almost everywhere, from hypermarkets to taxis and small cafés. Cash is still handy at traditional souks, small grocery shops and for tips.
Where do people in the UAE buy groceries and everyday goods?
Large hypermarkets inside shopping malls carry most of the weekly shop, alongside supermarket chains, community cooperative supermarkets and the baqala, a small neighbourhood grocer that often delivers to nearby flats. Traditional souks sell spices, dried fruit, textiles and gold.
Much of the food on UAE shelves is imported, so the same product often appears in several sizes and origins at different prices. Shops open seven days a week, malls stay open late, and opening hours shift during Ramadan. Bargaining is normal in souks but not in supermarkets.
Is VAT included in prices in the UAE?
Yes. The UAE charges value added tax at a standard rate of 5%, and shops are required to show prices that include VAT, so the shelf price is what you pay. Some services and restaurant bills may also list a separate service charge or municipality fee.
Tourists can reclaim VAT on eligible purchases made at shops registered for the tourist refund scheme, usually above a minimum spend, by validating their tax-free receipts before leaving the country. Part of the refund is kept as a handling fee, so check the current rules first.
What drives prices in the UAE?
Because the dirham is tied to the dollar, the UAE imports the dollar's strength or weakness straight into everyday prices for visitors. Food and household goods depend heavily on imports, so shipping costs and prices in exporting countries feed through to shelves.
Inflation in the UAE has generally been moderate, with housing and fuel moving more than groceries. Even so, promotions and import changes shift individual shelf prices, which is why the read date shown with each price on this page is worth checking.
Coverage by category
Compared with the other cities
US dollar prices for 42 products that we also have in at least three other cities. The percentage shows the difference from the average of those cities.
Lower in United Arab Emirates
- Towel - 50 x 90 cm$2.71-49%
- Single bed linen set - 1 set$7.90-48%
- Blanket - 1 piece$3.39-42%
- Drinking water - 1.5 L$0.41-35%
- Beef - 1 kg$15.41-30%
- Pillow - 1 piece$4.07-28%
Higher in United Arab Emirates
- Toilet paper - 4 rolls$3.71+177%
- Paper towels - 2 rolls$3.36+133%
- Instant noodles - 1 pack$1.17+116%
- Rice - 1 kg$4.60+115%
- Liquid soap - 500 ml$4.22+95%
- Trousers - 1 pair$46.02+82%
Local product types can differ between cities. The comparison tool only matches the same product type.
Compare United Arab Emirates with another country
Same budget, same products: see where your money goes further.
- United Arab Emirates · Türkiye
- United Arab Emirates · Thailand
- United Arab Emirates · Kosovo
- United Arab Emirates · Germany
- United Arab Emirates · Spain
- United Arab Emirates · Portugal
- United Arab Emirates · Switzerland
- United Arab Emirates · Georgia
- United Arab Emirates · Japan
- United Arab Emirates · Vietnam
Insights and guides about United Arab Emirates
All articles →Travel and life in United Arab Emirates
Pictures of United Arab Emirates
How these prices were read
Prices come from public shop pages and haven't been independently verified. The Data & methodology page has the details. Data & methodology
Try your own budget
Pick a budget and two countries to see the same comparison with your own numbers.
Questions people ask
What is the price of milk in United Arab Emirates?
The local shop price we read on November 8, 2026 was AED 6.99 per 1 L, about $1.90 at that day's reference rate.
What is the price of eggs in United Arab Emirates?
The local shop price we read on November 8, 2026 was AED 7.80 per 10 pieces, about $2.12 at that day's reference rate.
What is the price of rice in United Arab Emirates?
The local shop price we read on November 8, 2026 was AED 16.88 per 1 kg, about $4.60 at that day's reference rate.
How much is US$100 in United arab emirates dirham?
At the reference rate of November 8, 2026, US$100 comes to about AED 367.25.
Which products cost less in United Arab Emirates than in the other cities?
By dollar price, the clearest gaps are towel (-49%), single bed linen set (-48%), and blanket (-42%).
Which city do the United Arab Emirates prices come from?
All prices on this page were read in Dubai.
Do I need cash in the UAE?
In the UAE you can pay by card or phone for almost everything, including taxis, cafés and supermarkets. A small amount of dirhams in cash is useful for traditional souks, small grocery shops and tips.
Can tourists get a VAT refund in the UAE?
Yes. Tourists in the UAE can reclaim the 5% VAT on eligible goods bought at shops in the tourist refund scheme, usually above a minimum spend, by validating their receipts before departure. A handling fee is deducted, and rules can change, so check before buying.
Is the UAE dirham a fixed exchange rate?
Yes. The UAE dirham is pegged to the US dollar at a fixed rate, so its value against the euro, lira or other currencies rises and falls with the dollar.
Where do these prices come from?
Prices come from public shop pages and haven't been independently verified. The Data & methodology page has the details.
