Recent forecasts for the SGD to AED exchange rate reflect a stable but cautious market outlook influenced by economic developments in both Singapore and the UAE. As of December 4, 2025, the SGD to AED exchange rate stands at 2.8348, situated comfortably within a 2.5% range over the past three months, underscoring a relatively stable environment for this currency pair.
In Singapore, the Monetary Authority of Singapore (MAS) recently adjusted its monetary policy, opting for a more gradual appreciation of the SGD to bolster economic growth in light of lower-than-anticipated inflation. This easing, which began in January 2025, may temper any aggressive strengthening of the SGD, especially given the robust economic growth reported at 2.9% year-on-year in the third quarter of 2025, well above market expectations. Analysts note that while the economic performance remains strong, external factors such as U.S. trade tensions have placed pressure on the SGD, prompting expectations of continued careful management by the MAS.
Conversely, the UAE Dirham's stability is bolstered by a strengthened U.S. dollar and positive economic projections for the Emirates. The Federal Reserve's hints at potential rate cuts due to softening labor market conditions have fueled optimism in Gulf markets, reinforcing the UAE's economic outlook, with the International Monetary Fund forecasting significant growth in both Abu Dhabi and Dubai for 2025. The resulting strength in the Dirham, coupled with favorable rates stemming from a weakening of other Asian currencies, may positively impact remittance flows and consumer confidence.
As such, the current stability in the SGD to AED exchange rate suggests a cautious approach for those engaging in international transactions. Market forecasters recommend close monitoring of economic indicators from both regions, particularly how MAS and the UAE respond to ongoing global economic shifts, to determine the timing and strategies for currency exchanges. With the SGD trading near its three-month average, opportunities for advantageous exchanges may arise during fluctuations in response to ongoing economic developments.
