The Central Bank of the UAE (CBUAE) has unveiled a new symbol for the UAE’s national currency, the Dirham, coinciding with the country’s entry into the FX Global Code. This initiative reflects the vision of the UAE’s leadership and the guidance of His Highness Sheikh Mansour bin Zayed Al Nahyan, who is the Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Board of the CBUAE. The move aims to strengthen the UAE’s status as a prominent financial hub on the global stage.

In addition to the new symbol, the CBUAE announced progress on the issuance and circulation of the Digital Dirham. This initiative is part of the Financial Infrastructure Transformation (FIT) Programme, launched in 2023, which seeks to enhance the UAE’s position in Financial Market Infrastructure (FMI) and promote innovation in financial products and digital services. The Digital Dirham is supported by Federal Decree-Law No. (54) of 2023, which amends previous laws to ensure that it serves as a legal tender across all payment platforms alongside physical currency.

The introduction of the new Dirham symbol coincides with the CBUAE’s recent membership in the FX Global Code, making it the first central bank in the Arab region to join this initiative. This membership is part of the CBUAE’s broader efforts to establish the UAE Dirham as an international currency and to promote best practices in the exchange market. The CBUAE aims to enhance the integrity of the national currency in foreign exchange dealings while encouraging ethical practices among market participants.

The Digital Dirham is designed as a secure digital version of the UAE’s currency, leveraging blockchain technology to improve payment efficiency and reduce costs. This new currency will allow individuals and businesses to obtain the Digital Dirham through licensed financial institutions such as banks and fintech companies. The CBUAE expects to launch the Digital Dirham for the retail sector in the last quarter of 2025.

Key features of the Digital Dirham include tokenisation, which enhances financial inclusion and liquidity, and smart contracts that automate complex transactions. These features aim to foster innovation and efficiency in financial transactions, thereby positioning the UAE at the forefront of the digital economy.

The new Dirham symbol is a representation of the UAE’s currency in both physical and digital formats. The design incorporates two horizontal lines for stability and is inspired by the UAE flag. The Digital Dirham symbol features a circle around the physical currency symbol, reflecting the colors of the UAE flag and symbolizing national pride and identity. This choice signals the national currency’s global aspirations and commitment to creating a robust financial ecosystem.

Moreover, the CBUAE has developed a secure platform and Digital Dirham wallet that facilitates various financial transactions, including payments and money transfers. This integrated platform is designed to adapt to innovative financial solutions driven by the rapidly evolving digital economy, enhancing the UAE’s competitive edge as a leading financial hub.

Khaled Mohamed Balama, Governor of the CBUAE, expressed pride in unveiling the new Dirham symbol and the design of the Digital Dirham wallet. He highlighted that the advancements made in the Digital Dirham programme signify a significant step towards achieving the CBUAE’s vision. Balama emphasized that this blockchain-based platform is expected to enhance financial stability, inclusion, and resilience while combating financial crime, thus paving the way for innovative digital products and services.