UAE Completes First National Transaction Using the Digital Dirham
The UAE government has officially conducted its first-ever national transaction using the Digital Dirham, marking a historic step toward building a fully digital economy.
The transaction was executed jointly by the Ministry of Finance and the Dubai Department of Finance, in collaboration with the Central Bank of the UAE (CBUAE), according to an announcement made on Tuesday.
A Landmark in the UAE’s Financial Digitalization Drive
This milestone highlights the UAE’s growing efforts to integrate next-generation financial technologies across public and private sectors.
Ahmed Ali Meftah, Executive Director of the Central Accounts Sector at the Dubai Department of Finance, confirmed that the pilot transaction was completed via the mBridge platform, a multi-central bank digital currency (CBDC) settlement system developed by the CBUAE.
He added that the transaction was successfully processed in under two minutes, underscoring the platform’s speed and efficiency. While the product or service involved was not disclosed, officials emphasized the transaction’s importance as part of the Digital Dirham pilot phase.
What Is the Digital Dirham?
The Digital Dirham project forms part of the Central Bank’s Financial Infrastructure Transformation (FIT) Programme, which aims to modernize payment systems and strengthen the UAE’s reputation as a global hub for financial innovation.
Launched in partnership with local financial authorities, the initiative seeks to accelerate digital payment adoption, improve financial inclusion, and enhance cross-border payment efficiency.
Leaders Hail a “Pivotal Moment” in UAE’s Financial History
Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Central Bank of the UAE, described the Digital Dirham as a “strategic pillar” in the nation’s journey toward an integrated digital economy.
He said the successful transaction demonstrates the UAE’s advanced technical infrastructure and high level of integration across its national financial systems.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Prime Minister and Minister of Finance, echoed the sentiment, calling it a “pivotal moment in the history of government financial transformation in the UAE” in a post shared on X.
Tied to the UAE’s Broader Digital Asset Strategy
The Digital Dirham launch aligns with the UAE’s broader digital asset and crypto regulatory strategy, which emphasizes clarity, transparency, and institutional adoption.
Over the past year, the UAE has introduced frameworks for stablecoins and digital currencies, ensuring they are fully backed by high-quality liquid assets and subject to regular audits under Central Bank supervision.
In April 2024, major Abu Dhabi entities — IHC, ADQ, and First Abu Dhabi Bank — announced plans to issue a dirham-backed stablecoin, fully regulated by the CBUAE.
Experts say these steps strengthen the UAE’s position as a leader in digital finance, attracting institutional investment and fostering real-world use cases for blockchain-based financial systems.
