Dirham or Dirhem, the official currency of Dubai, Sharjah, Abu Dhabi, Ajman, Ras Al Khaimah, Fujairah, Al Ain, Umm Al Quwain, i.e. all Emirates of United Arab Emirates (U.A.E.) and Free Zones like JAFZA (Jebel Ali Free Zone), RAK Free Zone etc., is also a unit of currency in several other Arab nations in Middle East, and also formerly the related unit of mass (the "Ottoman Dram") in the Ottoman (USman) Empire.
Earlier, the Dirham was also a unit of weight used across North Africa, the Middle East, and Persia, with varying values. The name comes from Roman "Drachm". In the late Turkish Ottoman Empire - a standard Dirham was 3.207 g; 400 Dirham equal to one Oka. The unit was also used in the former Ottoman countries like Greece & Cyprus.
Historically, the word "dirham" is derived from the name of a Greek coin, the Drachm; the Byzantine Empire controlled the Levant and traded with Arabia, circulating the coin there in pre-Islamic times and afterwards. It was this currency which was initially adopted as an Arab word; then near the end of the 7th century the coin became an Islamic currency bearing the name of the sovereign and a religious verse. The dirham was struck in many Mediterranean countries, including Spain, and could be used as currency in Europe between the 10th and 12 centuries. Compare the Armenian dram for a currency whose name bears a similar origin. Also compare dinar for another currency circulated in the Muslim world but originating with the Romans.
The United Arab Emirates dirham was introduced in the year 1973. It replaced the Qatar and Dubai Riyal at par. The Qatar and Dubai riyal had circulated since 1966 in all of the Emirates except Abu Dhabi, where the Dirham replaced the Bahraini dinar at 1 dirham = 0.1 dinar. Before 1966, all the Emirates that were to form the UAE used the Gulf Rupee. As in Qatar, the Emirates briefly adopted the Saudi Riyal during the transition from the Gulf Rupee to the Qatar and Dubai Riyal. On 28 January 1978, the Dirham was officially pegged to the IMF's Special Drawing Rights (SDRs). In practice, it is pegged to the U.S. Dollar for most of the time. Since November 1997, the Dirham has been pegged to the 1 U.S. Dollar = 3.6725 Dirhams, which translates to approximately 1 dirham = 0.272294 Dollar.
The name Dirham derives from the Greek word Drachmae, being one of the most widely used currencies of all time. Due to centuries old trade and usage of the currency, Dirham survived through the Ottoman regime.
