The United Arab Emirates Dirham (AED) is known for its stability — pegged at 3.6725 AED/USD by the Central Bank of the UAE since 1997. But in 2025–2026, amid shifting interest rates, evolving remittance flows, and stronger emerging markets like India, many ask: What’s the currency forecast for AED?
AED Exchange Rate Forecast Summary
| Currency Pair | Current Trend & Outlook | 2026 Forecast | Sentiment |
|---|---|---|---|
| AED to USD | Pegged at 3.6725 | PEG HELD STEADY | Highly Stable |
| AED to INR | ~₹24.02 today | ₹24.6–₹25.2 | Mildly Bearish for AED |
| AED to GBP | GBP near 4.65–4.75 | Slight upward pressure | Mild Bullish for GBP |
AED to USD Forecast – Central Bank Peg Remains Firm
The AED to USD exchange rate remains fixed at 3.6725 under the official policy of the Central Bank of the UAE. Forecasts through 2026 and even into 2027 show no deviation from this peg. The AED continues to be one of the most stable currencies in the world.
AED to INR Forecast – INR Gaining Traction
As of September 6, 2025, the AED trades around 1 AED ≈ ₹24.0163, with a forecasted band between ₹24.02–₹24.02 in the short term.BookMyForex
Longer-term projections are trending higher:
- Late 2025 / Early 2026: Outlook stretches between ₹24.6–₹25.2.Indian Rupee
- Seasonally through 2026, monthly forecasts show fluctuations between ₹24.6 to ₹25.7.EFA Forecast Indian Rupee
Implication: The Indian Rupee appears poised to modestly strengthen against the Dirham during this period.
AED to GBP Forecast – Pound Mildly Stronger?
While precise projections for AED/GBP are sparse, market sentiment suggests a moderately stronger GBP, reflecting recent trends of the Pound trading near 4.65–4.75 AED.Cambridge Currencies
Factors at play include easing UK inflation, potential Bank of England rate adjustments, and broader macroeconomic developments.Cambridge Currencies
Takeaway: AED holders might get slightly lower value for GBP conversions, but movements are expected to be mild.
What Influences the AED Outlook?
- Oil Prices & Economic Resilience: While Brent crude is projected to average around $66–$70/barrel in 2025–2026, the UAE economy remains buoyed by diversified sources, robust trade, and continued investment.
- GDP Growth & Diversification: The UAE is forecast to achieve ~4.8% real GDP growth in 2025, with continued strength through 2026, thanks to tourism, non-oil exports, and infrastructure spending. Non-oil trade surged ~15% in 2024, marking a strategic shift.
- Rate Policy Alignment: Experts expect that UAE Central Bank will align with anticipated US Federal Reserve rate adjustments, helping preserve the currency peg.
FAQs – UAE Dirham (AED) Forecast 2025–2026
Will the UAE Dirham (AED) rise in 2026?
No. It’s pegged to USD at 3.6725, but may gain vs. weaker currencies.
What’s the AED to INR forecast for 2026?
₹24.6–₹25.2, depending on India’s economic trajectory.
Is the AED to USD rate changing?
No. The peg to 3.6725 remains in place through 2026.
What is a good AED to GBP rate?
Anything under 4.70 is considered strong value for AED holders.
Why is AED falling vs INR?
Due to India’s strong growth, tighter rates, and remittance volume.
Will the AED peg be removed?
No. There are no plans to change the USD/AED fixed rate.
What is the AED to INR exchange rate forecast for 2025?
AED to INR is forecasted to range from ₹24.0 to ₹24.6 in 2025.
What is the official AED to USD peg by the Central Bank of the UAE?
The Central Bank of the UAE officially pegs the Dirham at 3.6725 AED per USD.
Will AED to INR rise in 2026?
Yes, slightly. AED to INR may rise to ₹25.2 in 2026 due to continued INR strength.
Should I exchange now or wait?
If sending to India, consider hedging. For GBP, current rates are favorable.
AED Forecast Chart (2023–2026)
Should You Exchange Now or Wait?
| Situation | Recommendation |
|---|---|
| Sending money to India | Consider hedging — INR strength may continue |
| Buying GBP assets | Rates near 4.65–4.70 are favorable for AED holders |
| Traveling to UK/India | Watch for central bank rate changes |
| Holding USD | Stability makes now a safe time to convert |
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Final Thoughts
The AED remains rock-solid vs. USD, with cross-rates like GBP and INR offering value for conversions. Follow macro trends, monitor FX forecasts, and use rate alerts to time your transfers.
Watch the data, monitor central bank signals, and always compare exchange rates before converting.