In a regional first, UAE-based low-cost carrier Air Arabia has introduced cryptocurrency payments for flight bookings, allowing travelers to pay using AE Coin, a stablecoin pegged to the UAE dirham.
The initiative comes as part of a partnership between Air Arabia and Al Maryah Community Bank (Mbank), the country’s first fully digital bank. Passengers can now pay for tickets using the AEC Wallet App, making Air Arabia the first airline in the Middle East to offer stablecoin payments for travel services.
AE Coin, launched earlier this year, is backed 1:1 by the UAE dirham, ensuring minimal price volatility and faster, low-cost transactions. This peg to fiat currency gives users the benefits of digital asset transfers while preserving the predictability of traditional money.
According to Air Arabia’s Group CEO Adel Al Ali, the move is part of the airline’s broader digital transformation strategy. “We are committed to integrating innovative technologies that simplify the travel experience,” he said. “This partnership adds flexibility and convenience to how our customers interact with us.”
The launch follows the introduction of AE Coin in April by key UAE financial players including HC, ADQ, and First Abu Dhabi Bank. The stablecoin is designed to support the country’s vision of fostering a secure, digitally inclusive financial ecosystem.
Mohammed Wassim Khayata, CEO of Mbank, highlighted the collaboration as a step toward broader financial innovation. “We’re not just simplifying payment processes, we’re supporting the UAE’s ambition to lead in digital finance by building infrastructure that enables secure and inclusive transactions,” he said.
