The Central Bank of the United Arab Emirates has announced the new symbol for the national currency, the dirham, reflecting the leadership's vision and the directives of Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Presidential Court.

This initiative aims to enhance the UAE's position as a leading global financial center.

As part of this announcement, the Central Bank provided updates on the development and circulation of the "digital dirham," a key initiative launched in 2023 under the financial infrastructure transformation program.

This program seeks to elevate the UAE's reputation in financial infrastructure and to establish the country as a center of excellence in financial product innovation and digital transformation.

The legal framework for the digital dirham is established under Federal Decree-Law No. 54 of 2023, which amends certain provisions of Federal Law No. 14 of 2018 concerning the Central Bank and the regulation of financial institutions and activities.

This legal basis ensures that the digital dirham will be recognized as a comprehensive payment tool across all channels within the UAE, complementing both paper and coin currencies.

The unveiling of the new dirham symbol coincides with the Central Bank’s accession as the first central bank in the Arab world to the Global Foreign Exchange Code, aimed at establishing the dirham as an international currency and promoting transparency and best practices in the foreign exchange market.

The Central Bank will issue the digital dirham as a digital version of the national currency, designed to provide high levels of security and efficiency, which can potentially lower transaction costs through improved data privacy and faster transaction processing.

Individuals and companies will access the digital dirham through licensed financial institutions such as banks, exchange houses, and fintech companies.

Its rollout for the retail sector is anticipated in the fourth quarter of 2025. The digital dirham will feature several foundational benefits, including tokenization and smart contracts.

Tokenization will empower the digital dirham to enhance financial inclusion, efficiency, and access to liquidity through the digital division of assets.

Smart contracts will allow the digital dirham to be used for automatically executing more complex transactions instantaneously, including multi-party and multi-stage transactions involving specific conditions and obligations.

In a move highlighting the progress of the digital dirham program, the Central Bank presented the new symbol for the UAE's national currency in both its cash and digital forms.

The symbol "D," derived from the English name Dirham, incorporates two horizontal lines inspired by the flag of the United Arab Emirates, signifying financial and monetary stability.

The digital dirham symbol features a circle around the cash currency symbol, using the colors of the national flag to represent pride in national identity.

This design reflects the global reach of the national currency and an openness to a prosperous future, solidifying the commitment to developing an innovative local financial ecosystem with a global perspective.

The Central Bank has developed an integrated and secure platform for issuing, trading, and utilizing the digital dirham.

This platform includes a digital dirham wallet designed for user-friendly management by individuals and businesses, enabling various financial transactions, including payments in retail and wholesale sectors, cross-border transfers, withdrawals, and exchanges, ensuring a seamless and convenient experience compliant with top standards.

The platform also features capabilities to incorporate innovative financial solutions tailored to emerging use cases driven by the rapidly growing digital economy within the UAE, thereby ensuring a resilient and advanced financial system to enhance competitiveness as a leading financial center and a global digital payments platform.

During this announcement, Khalid Mohammed Balama, Governor of the Central Bank, expressed pride in the advancements made in implementing the digital dirham program through the unveiling of the new symbol for the UAE dirham in both cash and digital forms and the development of the "digital dirham wallet," marking a qualitative leap towards realizing the Central Bank's vision.

He projected that the digital dirham, being a blockchain-based platform with advanced capabilities, would enhance financial stability and inclusion, as well as the flexibility of the financial system, while ensuring strict compliance with anti-money laundering standards, facilitating the development of innovative digital products and services that will reduce costs and increase access to global markets.