UAE Executes Its Inaugural Digital Dirham Transaction: A Key Step Toward Shaping the Worldwide Digital Economy

The United Arab Emirates has achieved a groundbreaking feat by completing its inaugural government transaction with the Digital Dirham, the country’s central bank digital currency (CBDC). This event marks a pivotal step in the UAE’s journey toward digitalizing its financial sector. The transaction, which took less than two minutes to process through the mBridge platform, was carried out by the Ministry of Finance alongside the Dubai Department of Finance. This move demonstrates the UAE’s dedication to adopting blockchain technology to enhance public sector operations, according to a

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The mBridge platform, established in 2021 through a partnership involving the BIS Innovation Hub, the Bank of Thailand, the Central Bank of the UAE (CBUAE), the Digital Currency Institute of the People’s Bank of China, and the Hong Kong Monetary Authority, enabled the transaction, as detailed in the same Cryptopolitan report. In 2024, Saudi Arabia’s Central Bank joined the initiative, broadening regional collaboration on the multi-CBDC bridge. The UAE’s pilot was designed to test operational capabilities and ensure smooth integration with CBUAE’s infrastructure, according to Ahmed Ali Meftah, executive director of central accounts at Dubai Finance. “This transaction highlights our commitment to streamlining operations and accelerating financial settlements between federal and local government bodies,” he commented, as cited in a

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Senior officials in the UAE have strongly supported the project, highlighting its strategic value. H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Minister of Finance, described the achievement as a “landmark moment in the evolution of government finance,” emphasizing its contribution to greater transparency and operational effectiveness, according to a . Likewise, Sheikh Mansour bin Zayed Al Nahyan, Chairman of the CBUAE, referred to the Digital Dirham as a “key foundation” for building a cohesive digital economy, aligning with the UAE’s goal to strengthen its position as a leading global financial center, as mentioned in the same Coinotag report.

The introduction of the Digital Dirham is being carried out in stages, initially concentrating on payment services to avoid direct competition with interest-earning financial products, as noted in the Cointelegraph article. In August 2025, the CBUAE revealed plans to officially launch the CBDC by the end of the year, enabling both retail and peer-to-peer payments via a dedicated platform and digital wallets, according to Cryptopolitan. The IMF also praised the UAE’s advancements in October 2025, highlighting its forward-thinking approach to updating the AED Dirham system and regulating stablecoins, as reported by Cryptopolitan.

Although some critics of CBDCs express worries about privacy and potential disruptions to the financial industry, the UAE’s gradual rollout is designed to address these risks while encouraging technological progress. The CBUAE has established a robust platform for the issuance, trading, and use of the Digital Dirham, ensuring a well-managed shift toward digital payments, as stated by Coinotag. With only Nigeria, the Bahamas, and Jamaica having fully implemented CBDCs so far, the UAE’s efforts place it at the forefront of blockchain-based financial infrastructure in the region, according to a

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As the Digital Dirham approaches widespread release by the end of the year, its adoption is expected to transform both public and private sector transactions, reinforcing the UAE’s vision to lead in the digital economy. The successful pilot not only demonstrates the promise of CBDCs but also showcases the UAE’s proactive approach to keeping pace with global financial innovation.