The only currency you can spend in Dubai or Sharjah is the Arab Emirates Dirham (AED). So if you are not planning to shop much you should carry Dirhams with you. The currency in Dubai is the UAE dirham (Dhs or AED), which is pegged to the US dollar at the rate of US$ 1 = AED 3.67, this means it doesn’t change.
What currencies is best to carry while travelling to Dubai, US$ , AED or Indian Rupees.
You need Dirham everywhere to spend and shop but US Dollar is pegged to the conversion rate of 3.67 and can be easily exchanged with Money Changer in malls and in shops.
During the month of December to February US Dollar is available cheaper than Dirham in Indian Currency market and if you want a big shopping in Dubai it’s a good idea to carry US Dollar.
With USD you might be able to pay in the bazaar/mall, but the rates won’t be all that great, so its always better to have Dirham on hand. Convert your US Dollar to Dirham with Currency Exchange at mall or shops before you need it.
However do not exchange currency USD to AED in the airports or hotels as they give terrible exchange rates.
Somehow, Indian Rupees is also accepted by some of jewellers at Meena Bazar and Gold Souk. Dubai Jewellers might charge you extra for shopping with Debit/Credit card.
ATM are everywhere if you have your debit/credit card or foreign currency card. you as that way you will avoid paying a pointless ATM or over the counter fee and also Indian bank debit/credit card charges higher rate for conversion into foreign currency. Its not advisable use them as you are paying higher rate for foreign currency. Only use them if you are running out of money. But using a foreign currency prepaid card is advisable for shopping because the rate of currency are fixed with card.
Do not take traveller’s cheque with you in Dubai, very few places exchange them for currency.
Alcohol is expensive in Dubai Bars
If you prefer to drink in hotel room, you should buy couple of bottles from Dubai airport, duty free zone. Bottle of alcohol is not available in Dubai, you can only drink in bars or restaurant.
Drinks are expensive in Dubai and that you are recommended to buy it at the airport.