Recent developments in the exchange rate of the UAE Dirham (AED) to the Qatari Riyal (QAR) reflect a complex interplay of both regional economic dynamics and global market pressures. As of late September 2025, the AED to QAR exchange rate stands at approximately 0.9913, showing relative stability within a narrow range of 1.5% from 0.9816 to 0.9959 over the past three months.
The recent interest rate cut by the UAE Central Bank, which lowered rates by 0.25 percentage points, has contributed to a bullish sentiment in local equities, particularly in Dubai, suggesting some immediate economic resilience. Analysts have noted that this move aligns with trends seen in the US, and the AED seems to exhibit strength against other currencies, indicating robust economic fundamentals in the UAE.
Conversely, the Qatari Riyal maintains its fixed peg to the US dollar at 3.64 QAR per 1 USD, allowing the currency to benefit indirectly from the dollar's strength. The stability of the QAR is bolstered by recent adjustments in interest rates and a declining inflation rate, which has dropped to a mere 0.24% as of February 2025. These indicators suggest a stable economic environment within Qatar, further enhancing the attractiveness of the QAR in international markets.
Oil prices have also played a significant role in shaping the currency landscape. With oil trading at 30-day highs near $70.13, which is 2.9% above its three-month average, this uptrend supports both regional economies. As oil remains a major revenue driver for both the UAE and Qatar, fluctuations in its price can directly influence the strength of both currencies.
Market experts are cautiously optimistic about the AED moving forward, especially given its recent stability against the backdrop of a strong US dollar and improving economic indicators in the UAE. In contrast, the QAR's steadfast peg to the dollar and stable economic conditions in Qatar ensure it remains a solid option for those engaging in international trade or investment in the region. Both currencies exhibit a favorable outlook, yet continued monitoring of global economic policies, particularly those emanating from the US, will be essential for accurate forecasting in the coming months.
