Abu Dhabi: In a significant move to bolster its financial stature on the global stage, the Central Bank of the UAE (CBUAE) has unveiled a new symbol for the Dirham, the country’s national currency, on March 27, 2025. This initiative is part of the UAE's broader strategy to enhance its position as a leading financial hub.
The new Dirham symbol is derived from the English letter "D" and features two horizontal lines that represent financial stability, drawing inspiration from the UAE flag. This design is intended to be utilized both physically and digitally, marking a new chapter for the UAE’s currency as it seeks to establish a recognizable international identity akin to that of the dollar ($) or euro (€).
Alongside the unveiling of the Dirham symbol, the CBUAE also introduced the Digital Dirham, a digital version of the currency that will debut in late 2025 for the retail sector. The Digital Dirham will feature a circular design that incorporates the colors of the UAE flag, symbolizing national pride and the evolution of modern finance.
As part of the Financial Infrastructure Transformation (FIT) Programme launched in 2023, the Digital Dirham aims to enhance financial efficiency and security. Built on blockchain technology, it is expected to reduce transaction costs while improving data privacy and risk management.
Licensed financial institutions, including banks, exchange houses, finance companies, and fintech firms, will facilitate access to the Digital Dirham. This digital currency will be legally recognized as a universal payment method, operating alongside physical currency.
Khaled Mohamed Balama, Governor of the CBUAE, emphasized the importance of these initiatives, stating: "We are proud to introduce the new Dirham symbol and the Digital Dirham wallet, marking a significant milestone in the UAE’s financial sector. This step brings us closer to realizing our vision for a secure, efficient, and innovative financial ecosystem." He further noted that the Digital Dirham’s blockchain infrastructure will enhance financial stability, inclusion, and resilience while combating financial crimes.
Moreover, the CBUAE's commitment to the Digital Dirham is underscored by its recent accession to the FX Global Code, making it the first central bank in the Arab region to do so. This move aims to establish the UAE Dirham as an international currency, promoting integrity and ethical practices in the foreign exchange market.
The Digital Dirham will incorporate advanced financial technologies to drive innovation and financial inclusion, including:
- Tokenisation: This feature will enable fractional ownership of digital assets, improving liquidity.
- Smart Contracts: These will allow for the automated execution of complex financial transactions, ensuring instant settlement and compliance with predefined conditions.
To support the Digital Dirham, the CBUAE has developed a secure platform featuring a Digital Dirham wallet. This system will facilitate a range of transactions, including retail, wholesale, and cross-border payments, as well as money transfers, withdrawals, and top-ups. The platform is designed to integrate seamlessly with new financial solutions as the UAE’s digital economy continues to evolve, reinforcing the country’s role as a leader in global digital payments.
Balama remarked on the significance of these advancements, stating, "It is anticipated that the Digital Dirham as a blockchain-based platform with cutting-edge capabilities shall substantially enhance financial stability, inclusion, resilience, and combatting financial crime. It will further enable the development of innovative digital products, services, and new business models, while reducing costs and increasing access to international markets."
The introduction of the new Dirham symbol is more than just a branding exercise; it reflects the UAE's commitment to fostering a modern financial ecosystem that is both innovative and inclusive. The design of the Dirham symbol, which integrates elements of classical Arabic calligraphy, serves to connect the nation’s rich cultural heritage with its aspirations for the future.
Since its introduction in May 1973, the Dirham has been a cornerstone of the UAE’s economy, representing not just a means of exchange but also a symbol of the nation’s identity and values. The latest developments signify a forward-looking approach that aims to integrate the UAE more deeply into the global financial landscape.
As the UAE continues to navigate the complexities of the digital economy, the launch of the Digital Dirham and its new symbol stands as a testament to the nation’s dedication to innovation, financial security, and global engagement. With these steps, the UAE is poised to reinforce its status as a pivotal player in the international financial arena.
In conclusion, the unveiling of the new Dirham symbol and the introduction of the Digital Dirham not only represent a significant milestone in the UAE's financial evolution but also illustrate the nation's commitment to embracing the future of finance while honoring its rich heritage.
