The UAE has reached a defining moment in its digital transformation journey, completing its first government financial transaction using the Digital Dirham. The milestone highlights the country’s steady progress toward a fully digital economy and builds on the success of its earlier cross-border pilot, where Dh50 million was transferred to China through the same platform.
The transaction was jointly carried out by the Ministry of Finance and the Dubai Department of Finance, in close coordination with the Central Bank of the UAE. Together, these entities have moved the Digital Dirham from global testing into national use, reinforcing the UAE’s position as a leader in modern financial technology.
This latest development falls within the pilot phase of the Digital Dirham project, a key component of the CBUAE’s Financial Infrastructure Transformation Programme. The programme aims to accelerate digital payments, increase financial inclusion, and strengthen the UAE’s competitiveness as a global financial hub.
The transaction was executed through mBridge, a government payments platform developed by the CBUAE to support settlements using central bank digital currencies. Integrated directly with the Digital Dirham system, mBridge enables issuance, receipt, and settlement of payments without intermediaries.
The Dubai Department of Finance confirmed that the pilot transaction was completed in under two minutes, demonstrating both operational readiness and the platform’s ability to streamline financial settlements between federal and local government entities. Officials credited the UAE’s modern digital infrastructure for enabling such rapid and secure execution.
The road ahead
The first Digital Dirham transaction marks more than a technical achievement; it showcases the UAE’s integrated and forward-looking approach to building a digital economy defined by transparency, innovation, and long-term financial stability.
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