DUBAI: The Central Bank of the UAE (CBUAE) has unveiled a new symbol for the nation’s currency, the Dirham, marking a significant step towards global recognition.
This initiative aligns with the UAE’s ambitious financial transformation plans, including the introduction of the Digital Dirham and its adherence to the FX Global Code.
The move underscores the UAE’s commitment to financial innovation and stability, reinforcing its position as a global financial powerhouse.
New Dirham symbol
The newly introduced Dirham symbol, derived from the English letter "D," incorporates two horizontal lines inspired by the UAE flag, representing financial stability and strength. The CBUAE aims to establish the symbol internationally, enhancing the UAE Dirham’s visibility in global financial markets.
Meanwhile, the Digital Dirham symbol features a circular design surrounding the physical currency symbol. It integrates the colours of the UAE flag, symbolising national pride and the country’s forward-thinking approach to financial evolution.
Digital Dirham
As part of its Financial Infrastructure Transformation (FIT) Programme, launched in 2023, the CBUAE has been making strides in the development of the Digital Dirham. Expected to roll out for retail use in late 2025, the Digital Dirham is designed to enhance financial efficiency, security, and accessibility.
Built on blockchain technology, the Digital Dirham ensures robust security measures, cost reduction in transactions, and improved risk management. It will be recognised as a universal payment instrument (legal tender) across all payment outlets and channels, operating alongside physical currency.
Licensed financial institutions, including banks, exchange houses, finance firms, and fintech companies, will facilitate the circulation and usage of the Digital Dirham. The new digital currency aims to revolutionise the UAE’s financial ecosystem by providing seamless, secure, and efficient transactions.
Key features
The Digital Dirham integrates cutting-edge financial technology, bringing several key benefits:
- Tokenisation: Enhances financial inclusion by enabling fractional ownership of digital assets, improving liquidity and accessibility.
- Smart Contracts: Automates complex financial transactions, ensuring instant settlements and compliance with predefined conditions.
- Enhanced Security: Utilises blockchain technology for encrypted transactions, safeguarding financial data and mitigating risks.
Integrated payment platform
The CBUAE has developed a secure and integrated platform to support the issuance, circulation, and use of the Digital Dirham. This platform includes a Digital Dirham wallet, allowing individuals and businesses to conduct various transactions, including retail, wholesale, and cross-border payments.
The Digital Dirham wallet offers features such as money transfers, withdrawals, top-ups, and redemption services. The platform is designed for ease of use and can integrate innovative financial solutions, ensuring its adaptability to the rapidly evolving digital economy of the UAE.
Alongside these developments, the CBUAE recently became the first central bank in the Arab region to join the FX Global Code. This international framework promotes integrity, transparency, and ethical practices in foreign exchange markets, aligning with the UAE’s vision of establishing the Dirham as a recognised global currency.
Khaled Mohamed Balama, Governor of the CBUAE, highlighted the significance of these advancements, stating, "We are proud to introduce the new Dirham symbol and the Digital Dirham wallet, marking a major milestone in the UAE’s financial sector. These initiatives reflect our commitment to innovation and financial stability."
He further noted that the Digital Dirham’s blockchain infrastructure will enhance financial inclusion and resilience while playing a crucial role in combating financial crime. Additionally, it is expected to lower costs, drive digital product innovation, and improve access to international markets.