Car Rentals and the GBP/AED Exchange Rate
- Written by: Sam Coventry
Above: GBP/AED at daily intervals in 2025.
A Guide for Travellers From the UK on Renting a Car in Sharjah for a Month Without Losing the GBP–AED Exchange Rate.
Travelling to the UAE and planning to rent a car Sharjah monthly for a long stay can be cost-effective and convenient.
However, British visitors need to be savvy about currency to avoid losing money on the GBP–AED exchange rate. As a UK traveller, understanding how exchange rates and payment methods affect your car rental expenses is key.
This guide provides five essential tips — from currency exchange strategies to payment methods - to help you rent a car for a month in Sharjah without unnecessary exchange rate losses.
Understand the Dirham Exchange Rates
Start by familiarising yourself with the local currency. The UAE dirham is stable (pegged to the U.S. dollar) and usually around AED 5 to £1. Check the current rate before you travel and use it to estimate your rental cost in pounds.
Knowing the conversion helps you budget and avoid surprises. Also, plan where to get your dirhams and avoid changing money last-minute at UK airports, where rates are poor, and you’ll waste cash on bad rates.
It’s often better to convert currency after you arrive in the UAE or withdraw AED from a local ATM for a more favourable rate.
Choose the Best Payment Method
How you pay for your car rental can significantly impact the exchange cost. Most UK cards charge about 3% on foreign transactions (roughly £3 per £100 spent).
To dodge this fee, use a travel card with 0% foreign charges so you get the real market rate on your payment.
Paying in AED with a fee-free card usually gives the best value. Carry some AED cash for minor needs, but use your card for the rental itself.
(If you withdraw cash in Sharjah, use a bank ATM and be aware your bank may add a withdrawal fee.) By choosing a low-fee card and sticking to local currency, you’ll maximize the value of your pounds.
Book in Advance and Lock In Your Rate
Planning ahead helps you avoid exchange-rate surprises. If you can prepay your car rental in GBP before your trip, it locks in your cost at today’s rate. This way, if the pound weakens by the time you pick up the car, you won’t pay more.
Conversely, paying when you arrive in Sharjah means the cost in pounds will depend on the exchange rate at that time.
Decide based on your comfort with currency fluctuations: locking in a rate in advance gives certainty, while paying on arrival means the rate could change. If you do prepay, confirm the price is fixed in GBP and note the cancellation policy.
Avoid Dynamic Currency Conversion
When it’s time to pay, always choose AED rather than GBP on the card machine or contract. Merchants might offer to charge you in pounds, but you should decline it.
This practice, called dynamic currency conversion, uses a bad exchange rate plus fees that benefit the merchant.
Let your own bank handle the conversion by insisting on being charged in AED, so you get the fair rate.
The same goes for ATMs: if an ATM asks to convert your withdrawal to GBP, opt for AED instead. This way you avoid hidden rate markups and pay only what you should.
Manage Deposits and Long-Term Costs
Be mindful of the security deposit on a long-term rental. Use a credit card for the deposit, and ask the rental company to place a hold rather than a charge.
If they must charge and later refund it in AED, you could lose a bit if the exchange rate shifts during that period.
Using a no-foreign-fee credit card means you won’t pay conversion fees on the deposit or refund.
Also look for monthly rental rates — a one-month rental usually has a lower daily cost than a series of short rentals. By being smart with the deposit and choosing a monthly plan, you keep costs down and avoid currency losses.
Comparison of Payment Options and Exchange Rate Impact
This table compares payment methods and their currency exchange implications:
Payment Method | How Conversion Happens | Potential Extra Costs |
Prepay in GBP (before trip) | Cost set in GBP by agency at booking | Slight rate margin; no card FX fees; less flexibility if plans change. |
Pay in AED with no-fee credit card | Card converts at network rate | No foreign transaction fee; near-market exchange rate (best value). |
Pay in AED with standard card | Card converts at standard rate | ~3% bank forex fee on amount. |
Pay in GBP via DCC (merchant’s rate) | Merchant converts to GBP (DCC) | ~5% markup on rate (worst value). |
Pay in cash (GBP–AED exchange) | You convert GBP to AED yourself | Exchange spread fee; carrying cash has some risk. |
Smart Strategies to Save Money
By following these tips, travellers from the UK can rent a car in Sharjah for a month without losing out on the exchange rate.
The key points are to deal in the local currency (AED) and use payment methods that minimise fees. Do your homework on exchange rates and consider paying ahead of time if it locks in a good rate.
Small choices, like declining “pay in GBP” and using a fee-free card, can save a lot over a month. In short, stay alert to currency and you’ll enjoy your Sharjah car rental without financial surprises.
With the right preparation, you can explore the UAE with confidence, knowing you’ve made the most of every pound and dirham.