AED & USD - Markets & outlook
United Arab Emirates dirham - AED:
October 2, 2025
Key Developments Affecting the UAE Dirham (AED):
1. UAE-Turkey Currency Swap Agreement: On 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: In September 2025, Dubai real estate developers leveraged a weakened AED—approximately 8% down against the British pound due to U.S. tariffs—to attract British investors. This move has made Dubai properties more affordable for UK buyers, leading to a 62% year-on-year increase in British investment in Dubai homes in Q2 2025. (reuters.com)
3. UAE Central Bank's Interest Rate Cut: On September 19, 2025, the UAE central bank reduced interest rates by 0.25 percentage points, aligning with the U.S. Federal Reserve's decision. This rate cut has positively impacted UAE stock markets, with indices in Dubai and Abu Dhabi rising following the announcement. (reuters.com)
4. Stable AED-PKR Exchange Rate: As of May 27, 2025, the AED remained stable at 76.44 Pakistani Rupees (PKR). This stability is beneficial for the large Pakistani expatriate community in the UAE, ensuring consistent remittance values and facilitating trade between the two countries. (nation.com.pk)
