A brief history of the UAE currency, born almost 50 years ago


Katy Gillett
  • English
  • Arabic

Money in the UAE is about far more than material wealth.

A clock tower and police fort in Sharjah. A bird's eye view of Umm Al Quwain. The Ruler's palace in Ajman. A harbour in Ras Al Khaimah.

These were some of the images displayed on the UAE's first-issue banknotes, which came into being on May 19, 1973, nearly two years after the nation was unified.

Arabic lettering adorned the front of the Dh1, Dh5, Dh10, Dh50 and Dh100 notes, while there was English on the back.

While the currency undoubtedly hoisted the UAE into a new era of global recognition, allowing it to join the World Bank, these banknotes not only symbolise the country's prosperity, but also its heritage, traditions and moral values.

A brief history of UAE currency

Three years later, in 1976, a dark blue Dh1,000 note was issued, featuring forts from Dubai and Abu Dhabi.

It was 10 years before the Dh500 note, featuring Dubai's Jumeirah mosque, made its debut, while the colour-shifting, brown-hued Dh200, on which the Central Bank of the UAE is pictured, did not appear until 1989.

Before the UAE dirham, which since 1997 has been pegged to the US dollar at a rate of Dh3.6725, the Qatar and Dubai riyal changed hands among Emiratis, and previously, in 1959, there was a special Gulf issue of the Indian rupee, which was in circulation in what were then known as the Trucial States.

The Qatar and Dubai riyal had been in circulation since 1966 in all emirates but one: Abu Dhabi, where residents used the Bahraini dinar instead.

The Saudi riyal and even the Maria Theresa silver thaler were other currencies that had been used at various points the history of the area.

Paper money was not the only form of currency issued nearly 50 years ago, there were also six types of coin, only three of which are still in circulation: the 25 fils, 50 fils and one dirham. The 1, 5 and 10 fils are no longer used.

A sand gazelle, oil derricks and traditional dallah coffee pot all featured on the metal coins.

'A renewed pledge'

The currency continues to progress with the times and, over the years, several new banknotes marking important occasions have been circulated, such as in December, when a new Dh50 banknote was launched to celebrate the country's 50th National Day.

It depicts a portrait of the UAE Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan, with a commemorative picture of the founding rulers after signing the Union document, and an image of Wahat Al Karama, a memorial for Emirati soldiers killed in the line of duty.

“We see, in this issuance, the new phase that the UAE will enter and a renewed pledge to continue its growth path,” said Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, and chairman of the board of directors of the UAE Central Bank, at the launch of the note, state news agency Wam reported.

Only last month the Dh50, with new Dh5 and Dh10 banknotes, entered circulation, made of durable polymer material and with security features to prevent counterfeiting.

Ajman Fort and Dhayah Fort in Ras Al Khaimah feature on the Dh5, while Sheikh Zayed Grand Mosque in Abu Dhabi and Sharjah's Khor Fakkan amphitheatre appear on the Dh10.

Each has a transparent window featuring a portrait of Sheikh Zayed, along with the UAE brand logo, fluorescent drawings and inscriptions created using special printing techniques.

The technology and techniques might be new, but the symbols and images are as old as the country, and will no doubt continue to be used for many years to come.

Tips for newlyweds to better manage finances

All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.

Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.

Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.

Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.

Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.

Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.

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Updated: May 27, 2022, 6:01 PM