Sheikh Mansour bin Zayed Al Nahyan, Chairman of the Central Bank, emphasised that the Digital Dirham will help the UAE to create a digital economy.
The United Arab Emirates has made a milestone by making its first government financial transaction using the Digital Dirham. This move is made after an earlier pilot that successfully transferred 50 million dirhams to China using the same system.
The Ministry of Finance and the Dubai Department of Finance, in partnership with the Central Bank of the UAE, made the financial transaction. Officials say that the next step is to integrate the Digital Dirham into national financial processes.
The Central Bank initiated the Financial Infrastructure Transformation Programme, under which this initiative was implemented. The aim was to make financial inclusion and digitise the payments.
In January 2024, the UAE transferred Digital Dirham using the mBridge platform to China. The move was supported by the People’s Bank of China, the Hong Kong Monetary Authority, and the Bank of Thailand. It showed the potential of central banks to make secure cross-border settlements.
Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Central Bank, emphasised that the Digital Dirham will help the UAE to create a digital economy and fulfil its vision to become a global financial centre.
The first transaction between the federal and Dubai governments shows the high level of technical infrastructure within the national financial systems, which supports sustainable growth and economic stability.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, noted that using the Digital Dirham demonstrates the Ministry of Finance’s dedication to accelerating digital transformation in public finance management and to improving transparency and efficiency in government operations. He also stated that the initiative supports the integration of the national financial ecosystem and aligns with the leadership’s vision for a robust, innovative, and dependable digital economy.
Mohammed Hadi Al Husseini, Minister of State for Financial Affairs, described the Digital Dirham as a step forward towards integrating technology with the financial system. It will open up new doors to develop both government and private sector payments.
Khaled Mohamed Balama, Governor of the Central Bank, stated that the milestone shows the country’s commitment to improving financial stability and the national payments system, as well as its role as a global leader in financial innovation.
The transaction took place via mBridge, a government payments platform developed by the Central Bank, which is used to make payments using central bank digital currency.
Ahmed Ali Meftah, Executive Director of the Central Accounts Sector at the Dubai Department of Finance, stated that the trial was to test whether the UAE was operationally ready and ensure the seamless integration of technology within Central Bank systems.
Abdulrahman Saleh Al Saleh, Director General of the Dubai Department of Finance and Vice Chairman of the Central Bank, expressed his gratitude to the UAE leadership for consistently adopting advanced technology in the country’s financial systems. He stated that the first government transaction using the Digital Dirham showed a strong technical integration across national financial systems. Additionally, collaboration with the Central Bank will help to build a unified national economy.
Initially, the okatform was used for international payments, but now the mBridge platform is used for domestic payments in a quicker, more cost-effective, and transparent manner.
The Digital Dirham move will fulfil the UAE’s broader Financial Infrastructure Transformation agenda. The aim of the agenda is to make instant payment systems and improve digital identity tools.
Sheikh Mansour stated that this project shows the UAE’s integrated approach to making the digital economy, focusing on transparency, efficiency, and long-term financial sustainability.
