Alongside the new Dirham symbol, the CBUAE has also announced significant progress in the issuance and circulation of the Digital Dirham, a cornerstone of the Financial Infrastructure Transformation (FIT) Programme
The Central Bank of the UAE (CBUAE) has officially introduced a new symbol for the UAE’s national currency, the Dirham, marking a significant step towards solidifying the country’s status as a global financial leader. This move aligns with the vision of the UAE’s leadership and is backed by the directives of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Board of the CBUAE. The unveiling of the symbol coincides with the bank’s broader strategy to position the UAE as a hub for financial innovation and digital transformation.
A Leap Towards Digitalisation
Alongside the new Dirham symbol, the CBUAE has also announced significant progress in the issuance and circulation of the Digital Dirham, a cornerstone of the Financial Infrastructure Transformation (FIT) Programme launched in 2023. The initiative aims to enhance the UAE’s leadership in financial market infrastructure, ensuring that the Digital Dirham is recognised as a legal tender across all payment channels, as per Federal Decree-Law No. (54) of 2023, which amends key provisions concerning financial regulations in the UAE.
The Digital Dirham’s implementation is designed to integrate seamlessly into the existing financial ecosystem, making transactions more efficient and secure. The use of blockchain technology ensures enhanced security, reduced transaction costs, and streamlined payment processes. According to CBUAE, the Digital Dirham is expected to be available for retail transactions by the last quarter of 2025.
Enhancing Trust and Global Integration
The introduction of the new Dirham symbol also aligns with the UAE’s recent move to join the FX Global Code, making it the first central bank in the Arab region to do so. This underscores the country’s commitment to establishing the UAE Dirham as an internationally recognised currency while promoting integrity and best practices in the exchange market.
Key Features of the Digital Dirham
The Digital Dirham is designed with several advanced technological capabilities:
Tokenisation: Enhancing financial inclusion by allowing the fractionalisation of digital assets and improving liquidity access.
Smart Contracts: Facilitating automated execution of complex transactions, ensuring instantaneous settlements and improved efficiency.
Blockchain Integration: Guaranteeing data security, privacy protection, and robust risk management.
The Digital Dirham will be accessible to individuals and businesses through licensed financial institutions such as banks, exchange houses, fintech firms, and finance companies. This ensures a regulated and structured adoption of digital payments.
A New Symbol for a Modern Currency
The newly unveiled Dirham symbol is a reflection of the UAE’s economic strength and financial stability. The symbol, derived from the English letter ‘D’ for Dirham, features two horizontal lines signifying the stability of the currency. The design is inspired by the UAE flag, further emphasising national identity and financial security.
For the Digital Dirham, the symbol includes a circular enclosure surrounding the standard Dirham mark, using the UAE flag’s colours to symbolise technological advancement and national pride. This distinctive identity reinforces the UAE’s commitment to developing a cutting-edge financial ecosystem that meets global standards.
A Seamless Digital Payment Ecosystem
To facilitate the transition towards digital currency, the CBUAE has also introduced an integrated platform and a dedicated Digital Dirham wallet. The wallet will support various financial transactions, including retail and wholesale payments, cross-border transactions, fund transfers, and withdrawals. The system will ensure:
Easy access and management for individuals and businesses.
Incorporation of innovative financial solutions to meet the growing demands of the digital economy.
A seamless and secure user experience, ensuring compliance with global financial standards.
Leadership’s Vision for the Future
Khaled Mohamed Balama, Governor of the CBUAE, expressed confidence in the success of the initiative, stating, “We are proud to unveil today the new symbol for the UAE’s national currency, the Dirham, in both its physical and digital forms, along with the design of the Digital Dirham wallet. This reflects the significant advancements in the implementation of the Digital Dirham programme and a leap towards realising the CBUAE’s vision.”
He added, “It is anticipated that the Digital Dirham, as a blockchain-based platform with cutting-edge capabilities, will substantially enhance financial stability, inclusion, resilience, and combat financial crime. It will further enable the development of innovative digital products, services, and new business models, while reducing costs and increasing access to international markets.”
Solidifying UAE’s Financial Leadership
The introduction of the Digital Dirham and the new Dirham symbol marks a major milestone in the UAE’s journey towards a fully digitalised and globally integrated financial ecosystem. By embracing blockchain technology and reinforcing financial security, the UAE is positioning itself as a leader in financial innovation, offering a resilient, transparent, and future-ready economy.
As the nation moves closer to the official rollout of the Digital Dirham in 2025, businesses and individuals alike can look forward to a financial landscape that is more efficient, secure, and aligned with global best practices. This initiative reaffirms the UAE’s commitment to shaping the future of digital finance and further enhancing its reputation as a premier financial hub on the world stage.
