If you're planning to invest, launch a business, or move to Ras Al Khaimah (RAK), it's important to know how the local currency works. Like the rest of the UAE, RAK uses the UAE Dirham (AED). The Dirham is reliable, easy to use, and widely accepted, whether you're buying a coffee or handling big business payments.

The official currency in RAK is the UAE Dirham, written as AED. People also refer to it as Ras Al Khaimah currency or RAK currency. It's been pegged to the US Dollar at a fixed rate of 1 USD = 3.6725 AED since 1997.

AED Denominations

• Coins: 25 fils, 50 fils, 1 dirham
• Notes: AED 5, 10, 20, 50, 100, 200, 500, 1,000

The fixed rate means the AED doesn't fluctuate much in value, which is great for budgeting and international transactions.

How RAK's Economy Supports Its Currency

The strength of the AED is linked to how well RAK's economy performs. RAK has been expanding beyond traditional industries, which supports the currency's stability.

• Tourism and Hospitality: New projects like the Wynn Al Marjan Island resort are boosting tourism. By 2027, tourism may contribute nearly 40% of the local economy.
• Real Estate: Projects like BNW La Perla on Al Marjan Island attract both local and global buyers.
• Industry and Manufacturing: RAK is home to industries like cement, food production, and green technologies.
• Logistics and Trade: With its strategic location, RAK is key in trade routes, increasing the demand for foreign exchange.

As more investments flow into the region, AED usage increases, helping maintain its demand and strength.

RAK Banking and Business Finance

Banks in Ras Al Khaimah offer strong financial support to investors and business owners. Major banks include RAKBANK, Emirates NBD, Mashreq, and ADCB.

• Multi-currency business accounts
• Wire transfers and trade finance
• Payroll and salary services
• Digital banking platforms

Businesses set up in RAKEZ benefit from flexible currency rules and 100% profit repatriation.

Where to Exchange Money in RAK

• Al Ansari Exchange
• Al Fardan Exchange
• RAKBANK’s RAKFX platform

These providers offer fair exchange rates. Use a currency converter to check live AED to INR, GBP, or EUR rates before making large transactions.

Cash or Card: What Works Better in RAK?

Credit cards are widely accepted in RAK. However, carrying some cash is useful for small shops, local cafes, and taxis. ATMs are easily accessible and support most international cards.

Sending Money To and From RAK

Sending or receiving money in RAK is straightforward. There are no restrictions on international money transfers. Banks, exchange houses, and mobile apps make it easy for personal, business, or investment purposes.

Digital Payments and Currency Innovation

• RAK DAO – A free zone for blockchain, digital assets, and Web3 businesses
• RAKBANK + Bitpanda – Enables crypto services for users
• Aani Instant Payments – Send AED instantly using mobile numbers

The UAE is also developing a digital version of the Dirham (CBDC), which may transform future transactions.

Business Rules and Financial Compliance

• 9% corporate tax on profits above AED 375,000
• Stricter anti-money laundering and compliance regulations

Banks like RAKBANK assist businesses in sectors such as real estate, tourism, and technology.

A Quick Look at Currency History in RAK

Before the UAE was formed in 1971, different coins were used in RAK. In 1973, the UAE Dirham became the official currency across all emirates and has since symbolized stability and trust.

FAQs
1. What currency is used in Ras Al Khaimah?

The UAE Dirham (AED).

2. Is Ras Al Khaimah expensive currency-wise?

No, the AED is stable due to its fixed rate with the USD.

3. How stable is the UAE Dirham?

Very stable; it has been pegged to the US Dollar since 1997.

4. Where can I get the best exchange rates in RAK?

Al Ansari Exchange, Al Fardan Exchange, or RAKBANK.

5. Can I use credit cards in RAK?

Yes, cards are widely accepted, but carrying some cash is helpful.