Trade with the UAE: a practical guide to CHF/AED payments

A Swiss business importing from or exporting to the United Arab Emirates may agree a transaction in UAE dirhams (AED), US dollars or Swiss francs. The AED is pegged to the US dollar at a central rate of AED 3.6725 per USD. This makes the AED/USD relationship highly predictable, but it does not fix the dirham against the Swiss franc. As USD/CHF moves, CHF/AED moves with it. A Swiss company can therefore remain exposed even when its UAE counterparty sees very little uncertainty between AED and USD.

The currency chosen for an operation determines where conversion takes place, how the payment moves and which party carries the exchange-rate exposure. The practical question is which commercial price, payment route and conversion arrangement best fit the underlying transaction.

Switzerland-UAE trade is strongly influenced by gold flows

The UAE is Switzerland's largest trading partner in the Middle East. The relationship spans precious metals, watches, pharmaceuticals, machinery and services.

Trade values are dominated by precious metals. Trading Economics, based on UN Comtrade data, records Swiss exports to the UAE of USD 11.57 billion in 2025. Precious stones, metals and coins accounted for USD 8.36 billion, followed by watches and pharmaceuticals.

In the other direction, Swiss imports from the UAE rose from USD 13.12 billion in 2024 to USD 47.92 billion in 2025, an increase of approximately 265%. Precious stones, metals and coins represented USD 47.68 billion of the 2025 total.

The UAE is a hub for international gold trading, while Switzerland is a refining centre. Volumes and market prices can therefore move annual totals sharply: the 2025 increase does not indicate equivalent growth across every sector.

The EFTA-GCC free trade agreement in practice

Commercial ties are also supported by the EFTA-GCC free trade agreement, in force since 1 July 2014. The agreement covers trade in goods and services, government procurement, intellectual property and competition. For goods, preferential treatment depends on the product concerned and compliance with the applicable rules of origin. The agreement can therefore influence market access and the wider cost of a transaction.

AED, USD or CHF? The invoice currency determines where the FX exposure sits

The invoice currency sets the amount owed, but it also determines who needs to obtain that currency and when the exposure begins. The three common choices create different arrangements:

• For a Swiss importer, an AED invoice creates a direct CHF/AED requirement. A USD invoice makes CHF/USD the visible exposure, while the supplier faces little uncertainty if it then converts USD into AED. A CHF invoice leaves more of the conversion to the supplier.

• For a Swiss exporter, the direction reverses. Invoicing in CHF can provide greater certainty over the amount recorded in the company's domestic currency. Invoicing in AED or USD can be more convenient for the customer, but leaves the exporter with a foreign-currency receipt to hold, use or convert.

Important : The exposure has not necessarily disappeared when it moves to the other party. A supplier or customer may reflect its own conversion costs or uncertainty in the quoted commercial price.

How can a Swiss business pay a UAE supplier?

1. Paying directly in AED

Possible route: CHF -> AED -> local or international AED payment -> AED credited

AED may be the natural choice when most of the supplier's payroll, rent, tax and operating costs are in the UAE. The Swiss buyer controls the CHF/AED conversion and can establish how many dirhams will be sent. The supplier receives its domestic currency without needing to convert a foreign-currency payment after it arrives.

SwissFx currently supports both local and international AED payments within its currency capabilities. The route, beneficiary requirements, processing time and expected amount credited should still be confirmed before payment.

2. Paying in USD

Possible route: CHF -> USD -> international USD payment -> USD retained or converted into AED

USD is widely used in international trade with the UAE. Because the dirham is pegged to the dollar, a supplier converting USD into AED faces very little AED/USD exchange-rate uncertainty. USD may also suit a business that already invoices, purchases or finances in dollars.

However, a USD invoice does not make the transaction cost-free or risk-free for the Swiss buyer. It creates a CHF/USD conversion, and the supplier may still incur bank charges or operational conversion costs when the funds are received.

3. Paying in CHF

Possible route: CHF payment -> UAE supplier -> possible CHF/AED or CHF/USD conversion

A CHF invoice can remove an immediate conversion from the Swiss buyer’s workflow. The supplier then decides when and where to convert the funds. If it ultimately needs AED, it carries the CHF/AED exposure and may add an FX buffer to the price.

For that reason, the easiest payment currency for the buyer is not automatically the most competitive commercial choice. The CHF, USD and AED quotations should be compared on the same basis, including the amount that will reach the supplier.

How can a Swiss exporter receive payments from the UAE?

A Swiss exporter faces the same three currency choices in reverse. The right structure depends on the currency the customer can pay, the currency the exporter needs and what will happen to the funds after receipt.

SwissFx supports international collections in AED through its multi-currency account. It does not currently provide local AED account details for domestic collections. This matters before the first invoice: international collection support does not give the customer a domestic payment route.

Received AED can be converted into CHF, retained for a planned conversion or used for eligible AED expenses. Matching recurring AED receipts and costs may reduce the gross amount converted, but a residual exposure or timing mismatch can remain.

Example: how can an AED invoice change in CHF value?

Consider a Swiss company buying goods worth AED 1 million. It pays a 30% deposit when the order is confirmed and the remaining 70% three months later. The invoice is fixed in AED, but its CHF cost remains open until each conversion is made.

If the entire order had been converted at AED 4.20 per CHF, it would have cost approximately CHF 238,095. In this hypothetical example, the movement between the deposit and the balance increases the total cost by approximately CHF 8,334, even though the supplier has not changed the AED invoice.

The calculation excludes the FX spread, transfer fees, intermediary-bank charges, taxes and financing costs. The rates are illustrative only and are not forecasts or quotations.

Spot or forward: how to match the FX approach to the payment date?

Option 1. A spot conversion

A spot conversion uses the rate available for settlement at or close to the current date. It may suit an immediate supplier payment or an AED receipt that has already arrived. It maintains flexibility, but does not fix the rate for a future balance or collection.

Option 2. Holding AED

Holding AED can support recurring payments, particularly when receipts and costs occur in the same currency. This can reduce unnecessary back-and-forth conversions, provided the amounts and dates align with the underlying commercial flows.

Option 3. A deliverable forward contract

Where the future amount and payment date are sufficiently certain, a deliverable forward contract can establish a CHF/AED rate in advance. An importer can use it for a planned AED payment, while an exporter can use it to make the CHF value of a defined future AED receipt more predictable. A forward does not guarantee a better outcome than the future spot market. Its purpose is to reduce uncertainty.

Good to know: SwissFx offers deliverable forwards for businesses buying and selling AED as part of its FX risk-management solutions, subject to eligibility, assessment and agreed terms.

Choosing between AED, USD and CHF payment routes

This end-to-end comparison is also a useful part of an FX audit: it makes it easier to see whether conversion costs, payment deductions or unmanaged exposure sit with the Swiss business or are being reflected elsewhere in the commercial price.

Frequently asked questions

This article is for general educational purposes only and does not constitute financial advice. FX risk-management products are subject to eligibility, availability and the underlying commercial exposure.