The Central Bank of the UAE (CBUAE) has unveiled a new symbol for the country’s national currency, the Dirham, on March 27, 2025. This symbol represents both its physical and digital forms, reflecting the UAE's national identity and aspirations to strengthen its position as a global financial hub.
The new symbol features two horizontal lines, symbolizing the stability of the Dirham, and is inspired by the UAE flag. The surrounding circle in the digital format uses the vibrant colors of the UAE flag—green, white, red, and black—emphasizing national pride and identity.
H.E. Khaled Mohamed Balama, Governor of the CBUAE, stated, "We are proud to unveil the new symbol for the UAE Dirham in both physical and digital forms, as well as the design of the Digital Dirham wallet. This marks a major milestone in the implementation of the Digital Dirham programme and aligns with the Central Bank’s strategic vision."
In parallel with the launch of the new symbol, the CBUAE announced significant developments regarding the Digital Dirham, a key component of the Financial Infrastructure Transformation (FIT) Programme initiated in 2023. The Digital Dirham aims to position the UAE at the forefront of Financial Market Infrastructure (FMI) innovation and excellence in digital financial products.
Backed by Federal Decree-Law No. (54) of 2023, which amends key provisions of the existing laws governing the Central Bank and financial institutions, the Digital Dirham will be legally recognized as a universal payment instrument, accepted across all payment platforms and channels alongside physical currency.
This initiative reinforces the UAE’s ambitions to establish the Dirham as a significant international currency. The CBUAE also recently joined the FX Global Code, becoming the first central bank in the Arab region to do so. This membership reflects the UAE's commitment to ethical standards and best practices in the foreign exchange market.
The Digital Dirham will leverage blockchain technology, promising lower transaction costs, enhanced data security, and effective risk management. Its architecture ensures atomic transaction completion and data protection. Individuals and businesses will be able to obtain the Digital Dirham through licensed financial institutions such as banks, exchange houses, finance companies, and fintech firms.
Retail issuance of the Digital Dirham is expected in the last quarter of 2025, with key features including tokenization to facilitate digital asset fractionalization, expanding access to liquidity, and the use of smart contracts to enable the automated execution of complex transactions.
The CBUAE has developed an integrated and secure platform for the issuance, circulation, and use of the Digital Dirham, including a user-friendly Digital Dirham wallet. This wallet is designed for ease of use and management by both individuals and businesses, supporting a range of financial transactions such as retail, wholesale, and cross-border payments, money transfers and withdrawals, top-ups, and redemptions.
Hassan Fawaz, chairman and founder of GivTrade, noted, "The introduction of new Dirham symbols and digital forms represents a step towards modernizing its currency system and is part of the UAE's Financial Infrastructure Transformation (FIT) Programme." He emphasized that the new symbols reflect the UAE's global currency aspirations, supported by its strong economic position with record trade levels of $800 billion.
Samer Hasn, a senior market analyst at XS.com, added that the circle surrounding the symbol in the Dirham logo represents the UAE’s approach to embracing revolutionary blockchain technology. This technology is expected to position the UAE not only as a global financial market center but also as an international hub for settling cross-border trade payments using a local currency.
The new Dirham symbol is designed to place the Emirati currency at par with major global currencies, reflecting the UAE's growing influence in the international market. According to the UK’s largest foreign exchange provider, the UAE Dirham was among the top 10 best-selling currencies between February 2024 and January 2025, ranking sixth in the UK during that period.
As the UAE continues to enhance its financial ecosystem, the unveiling of the new Dirham symbol and the introduction of the Digital Dirham signify the nation’s commitment to innovation and modernization in its currency system. The CBUAE's initiatives aim to ensure that the UAE remains competitive in the rapidly evolving global financial landscape.
In summary, the new Dirham symbol and the forthcoming Digital Dirham reflect the UAE's strategic vision for its currency, emphasizing stability, national pride, and a forward-looking approach to financial integration. With the Digital Dirham set to launch in late 2025, the UAE is poised to make significant strides in enhancing its financial infrastructure and promoting its currency on the world stage.
