Did You Know Long Before Dirhams, Indian Rupee Was Used In UAE?

If you are a resident of the UAE, you must have heard people say that you must save your precious Dirhams. Well, maybe it is a statement that your friends or family must have said to you; as they emphasise the need to save money and do better for oneself for growth in the emirate. While it’s not actually an idiom, it is true that Dirham has made quite a mark for itself in the global money market. But did you know that Dirham has not always been the currency of the UAE? Well, long before it existed, the currency used in the United Arab Emirates was the Gulf Rupee. In fact, a report by Khaleej Times mentions that until 1957, the currency notes that were used in India were also used in the Trucial States of the UAE.

Indian Rupee Was Once In Circulation

As surprising as it may sound, the report mentions that before 1957, Indian Rupee notes were actually a part of the UAE market. So, the currency notes that were used in the state of Bombay in India were actually being used in the UAE as well. However, in 1957, the Gulf Rupee or the external rupee were printed. They were printed for circulation in the Gulf, as mentioned in the report and these special notes were then introduced to curb the widespread gold smuggling that was happening in the region. While they are identical to the Indian rupee note and the design on the new note was the same and the colour was completely different. Not to mention, the new notes that were used in India were carrying a special serial number or the prefix of Z over the number.

Gulf Rupee Was In Circulation For Some Time

So, the new notes that came into circulation were in the denomination of rupees ₹1, ₹5, ₹10, and ₹100. In fact, not just the Trucial States, but other GCC countries like Kuwait, Oman, Bahrain, and Qatar also used them. Saudi Arabia was the only country that did not use these notes. The Gulf Rupee was in circulation till 1966! However, it was only in the year 1973 that the Currency Board was established.

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This was done as per the Union Law Number (2) of 1973 that issued the National Currency replacing the Bahrani Dinar and the Qatari and the Dubai Riyal currencies that were in use at the time in the UAE. Yes, the UAE Dirham was introduced. The board issued the national currency and the Emirati Dirham was born. The abbreviation is AED and the unofficial abbreviations include dh and dhs. The Dirham is sub-divided into 100 fills and the coins are available in the denominations of AED1, 50 fills, and 25 fills.

Emirati Dirham Was Born

n fact, from the year 1976, the currency board of the UAE has already minted several commemorative coins celebrating different events in the UAE. Bank notes have also been introduced and the denominations of AED1, 5, 10, 50, and 100. And it was only three years later, in 1976 that the AED1000 note was released. It’s worth mentioning that the first notes were issued in both Arabic and English lettering with several landmarks of the UAE printed on them.

So, if you also wish to know more about the history of the currency, you must visit the UAE Currency Museum in Abu Dhabi that’s located on the ground floor of the Central Bank Headquarters.

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