The currency of the United Arab Emirates (UAE) is the dirham, abbreviated as AED. The dirham is subdivided into 100 fils and has been the official currency since the UAE's formation in 1971. The UAE dirham is pegged to the US dollar, which stabilizes its value and fosters trade within global markets. The currency notes and coins often feature images that represent the UAE's culture, heritage, and commitment to modernization. The dirham is widely used in everyday transactions, tourism, and commerce, reflecting the UAE's economic standing as a prominent hub in the Middle East.