AED & USD - Markets & outlook
United Arab Emirates dirham - AED:
October 19, 2025
Key Developments Affecting the UAE Dirham (AED):
1. UAE-Turkey Currency Swap Agreement (October 2, 2025): The central banks of the UAE and Turkey signed a bilateral currency swap agreement valued at 18 billion AED ($4.9 billion). This deal aims to enhance local currency liquidity and streamline financial transactions between the two nations. (reuters.com)
2. Dubai's Strategy to Attract British Property Buyers (September 7, 2025): UAE real estate developers are leveraging a weakened dirham—down about 8% against the British pound due to U.S. tariffs—to attract British property buyers to Dubai. This strategy has led to a 62% year-on-year increase in British investment in Dubai homes in Q2 2025. (reuters.com)
3. IMF's Positive Outlook on UAE Economy (October 2, 2025): The International Monetary Fund (IMF) completed its 2025 Article IV mission to the UAE, highlighting the country's strong resilience to global uncertainties and projecting a 4.8% GDP growth in 2025. This positive outlook underscores the UAE's economic stability, which supports the strength of the AED. (imf.org)
Recent Developments Impacting the UAE Dirham:
- UAE, Turkey cenbanks sign $4.9-bln currency swap deal, Published on Thursday, October 02
- Dubai looks to capitalise on weak dirham to lure British home buyers, Published on Sunday, September 07
