The Central Bank of the UAE (CBUAE) today revealed the new symbol for the UAE’s national currency, the “Dirham,” marking a significant step in the nation’s vision of becoming a global financial hub. This move, in line with 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, reflects the UAE’s commitment to strengthening its position in global finance.
Alongside the unveiling of the new currency symbol, the CBUAE also shared updates on the Digital Dirham initiative, a key component of the Financial Infrastructure Transformation (FIT) Programme, which was launched in 2023. This initiative aims to position the UAE as a leader in Financial Market Infrastructure (FMI) and enhance the country’s reputation as a pioneer in financial product innovation and digitalization.
Digital Dirham: A Leap Forward in Financial Innovation
The UAE’s Digital Dirham is a blockchain-based digital version of the national currency, designed to ensure its acceptance as legal tender across all payment outlets and channels, complementing physical currency. Underpinned by Federal Decree-Law No. (54) of 2023, the Digital Dirham aims to be widely used across all sectors, including retail and cross-border transactions.
The initiative promises several advantages, including improved financial inclusion, tokenization, and the integration of smart contracts for automatic and instantaneous transaction execution. The Digital Dirham is expected to be issued to the retail sector by the fourth quarter of 2025.
The New Dirham Symbol: Emblem of Stability and National Identity
The CBUAE’s announcement of the new Dirham symbol signifies a major milestone in the Digital Dirham program. The physical and digital Dirham symbols are designed to represent both the stability of the currency and its national identity. The new logo incorporates two horizontal lines, symbolizing stability, and is inspired by the UAE flag. The Digital Dirham symbol, featuring a circle around the physical currency symbol in the UAE’s flag colors, further reflects the country’s pride and commitment to financial innovation.
A Robust Digital Wallet and Secure Platform
In tandem with the symbol’s unveiling, the CBUAE introduced a secure, integrated platform for the issuance and circulation of the Digital Dirham, which includes a user-friendly digital wallet. The wallet is designed to support a variety of financial transactions, from retail payments to cross-border money transfers, ensuring seamless interaction for both businesses and individuals.
The platform is built to adapt to the rapid growth of the UAE’s digital economy, ensuring that it remains flexible and capable of integrating new, innovative financial solutions. This positions the UAE to maintain its competitive edge as a global leader in digital payments.
Strengthening the UAE’s Position in Global Finance
The unveiling of the new symbol and progress on the Digital Dirham comes as the CBUAE also joined the FX Global Code, becoming the first central bank in the Arab region to do so. This move aligns with the broader goal of establishing the UAE Dirham as a globally recognized currency, enhancing integrity in foreign exchange markets and promoting ethical practices in financial transactions.
Khaled Mohamed Balama emphasized the importance of the Digital Dirham in strengthening the UAE’s financial system. “It is anticipated that the Digital Dirham as a blockchain based platform with cutting edge capabilities shall substantially enhance financial stability, inclusion, resilience, and combatting financial crime. It will further enable the development of innovative digital products, services, and new business models, while reducing cost and increasing access to international markets,” Khaled said.
Inputs from WAM
