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Founded in 2006 as the American College, this institution initially offered two-year associate degrees in media, information technology, business, and design to 40 students.

The university's name, AUE, reflects its educational approach rather than its ownership. From the start, AUE has provided credit-based courses covering general education and electives.

In 2009, it introduced a business school and its first MA course in diplomacy. The first MBA course followed in 2010.

Today, AUE enrols just under 2,000 students across various faculties, including business administration, media and mass communication, computing and information technology, design, security and global studies, and law and education. All programmes are offered in English, with the option to study in Arabic for students pursuing law, public relations, or education. Notably, the education degree introduced in 2021 places a strong emphasis on special education.

Classes are held on the AUE campus, situated in Dubai International Academic City, with a capacity for up to 4,400 students.

The university is also developing accommodation facilities for 1,900 students. In 2022, AUE partnered with Dubai Police to offer degree courses for 40 prisoners.