New Dirham Symbol
The Central Bank of the UAE (CBUAE) has taken a significant step in the country’s financial evolution by introducing an official symbol for the dirham, representing both its physical and digital forms. The unveiling marks a major milestone in strengthening the dirham’s identity, both locally and internationally.
The newly introduced symbol is inspired by the English abbreviation of the currency and features two horizontal lines that signify financial stability and strength.
Additionally, elements of the UAE flag are subtly incorporated into the design, reinforcing the country’s national pride and economic resilience. The digital dirham version of the symbol is encased within a circle adorned with the UAE flag’s colors, further enhancing its representation of national identity.
This initiative aligns with the UAE’s broader vision of financial modernization and digital transformation. By introducing an official dirham symbol, the country aims to position its currency more prominently on the global stage, much like other major currencies that are widely recognized by their distinct symbols.
In a move that further cements its international standing, the UAE has also become the first central bank in the Arab region to join the FX Global Code. This decision underscores the country’s commitment to maintaining best practices and ethical standards in foreign exchange transactions while reinforcing the dirham’s credibility as a key international currency.
Digital Dirham to Revolutionize Transactions in 2025
As part of its digital finance strategy, the UAE is set to launch the ‘Digital Dirham’ in late 2025, specifically targeting the retail sector. This digital currency, built on blockchain technology, will offer enhanced security, reduced transaction costs, and improved data protection. Additionally, it aims to optimize risk management in financial transactions.
Individuals and businesses will be able to access the Digital Dirham through authorized financial institutions such as banks, exchange houses, finance companies, and fintech firms.
Among its notable features is tokenization, which will enhance liquidity and promote financial inclusion. Furthermore, smart contract technology will allow for automated and instant transactions, including complex multi-party deals, making financial processes more efficient.
To ensure seamless integration into the UAE’s evolving financial ecosystem, the CBUAE has developed a secure, comprehensive platform for issuing, circulating, and utilizing the Digital Dirham. This system includes a dedicated digital wallet designed for both individuals and businesses.
The wallet will support a variety of financial activities, including retail and wholesale payments, cross-border money transfers, withdrawals, top-ups, and redemptions.
The UAE’s efforts to digitize its currency align with its broader economic transformation goals. The introduction of the Digital Dirham and its accompanying infrastructure will not only enhance financial transactions but also foster innovation and adaptability within the rapidly evolving digital economy.
By pioneering such initiatives, the UAE is solidifying its role as a global leader in financial technology and economic modernization.
