UAE Central Bank Unveils New Dirham Symbol, Strengthening Financial Hub Status

The Central Bank of the UAE (CBUAE) has unveiled a new symbol for the UAE Dirham, coinciding with its recent adoption of the FX Global Code, becoming the first central bank in the Arab region to do so.

This move aligns with the vision of the UAE's leadership, led by Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Board of the CBUAE, to further strengthen the UAE's position as a leading global financial hub.

The newly introduced symbol for the UAE Dirham represents both its physical and digital forms. Derived from the English name for the Dirham, the symbol incorporates two horizontal lines, symbolizing currency stability and drawing inspiration from the UAE flag, according to WAM.

The Digital Dirham symbol includes a surrounding circle with the flag's colors, reflecting national identity and the currency's global reach. This move highlights the UAE's commitment to financial innovation and international integration.

To support the Digital Dirham, CBUAE has developed a secure platform and digital wallet for seamless transactions. The wallet allows individuals and businesses to conduct retail, wholesale, and cross-border payments, money transfers, withdrawals, and top-ups.

Designed for flexibility, the platform can integrate emerging financial solutions, reinforcing the UAE's position as a leading global financial hub.

CBUAE also provided an update on the Issuance and Circulation of the Digital Dirham, a key initiative under the Financial Infrastructure Transformation (FIT) Program launched in 2023. This initiative aims to position the UAE as a leader in financial market infrastructure and digital innovation.

The Digital Dirham is backed by Federal Decree-Law No. (54) of 2023, which amends provisions of the 2018 financial regulation law. This ensures that the Digital Dirham will be accepted as legal tender across all payment outlets and channels, alongside physical currency.

By introducing the new Dirham symbol and joining the FX Global Code, CBUAE aims to establish the UAE Dirham as an international currency while promoting transparency, ethical practices, and best standards in foreign exchange markets.

The Central Bank of the UAE (CBUAE) is introducing the Digital Dirham as a digital version of the national currency. Built on blockchain technology, it ensures strong risk management, data privacy, and instant transaction processing while reducing payment costs.

Individuals and businesses can access the Digital Dirham through licensed financial institutions like banks, exchange houses, and fintech companies, based on approved use cases. Its issuance for the retail sector is expected in late 2025.

Key features include tokenization, which enhances financial inclusion and liquidity through digital asset fractionalization, and smart contracts, which enable automated and instant settlement of complex transactions, including multi-stage and multi-party agreements.