UAE Introduces Official Symbol for Dirham as Digital Currency Era Gains Momentum

First introduced in 1973, the Dirham now bears a modern and distinctive symbol inspired by the word “Dirham” in English.

Two horizontal lines, symbolic of the currency’s enduring stability and reflective of the national flag, are key elements in its design. For digital applications, the emblem is enclosed within a vibrant circular motif featuring the UAE flag colors — a visual tribute to both tradition and the country’s progressive financial vision.

This development aligns with the UAE’s ambition to solidify its reputation as a dynamic global financial center. It comes on the heels of the Central Bank’s entry into the FX Global Code — a first for the Arab region — signifying a commitment to integrity, fairness, and transparency in foreign exchange markets.

The new symbol serves as a crucial stepping stone in the rollout of the Digital Dirham, the UAE’s upcoming central bank digital currency (CBDC), under the broader Financial Infrastructure Transformation (FIT) programme introduced in 2023.

Legally recognized by Federal Decree-Law No. (54) of 2023, the Digital Dirham will function as a fully integrated legal tender across all digital and physical platforms.

The Digital Dirham will leverage cutting-edge blockchain infrastructure to deliver fast, secure, and privacy-enhanced transactions. With expected retail issuance in Q4 of 2025, the currency will be accessible to individuals and businesses via licensed banks, fintech companies, and exchange houses.

To ensure seamless adoption, the CBUAE is also preparing to launch a fully integrated digital wallet that supports a range of payment functionalities — from retail and wholesale transactions to cross-border remittances and real-time top-ups.

Key Features of the Digital Dirham:

• Tokenization: Enables fractional ownership of digital assets, enhancing market liquidity and financial accessibility.
• Smart Contracts: Facilitates the automated execution of complex agreements, promoting efficiency, transparency, and instant settlement.
• Blockchain-Powered Security: Delivers atomic transaction completion, robust risk management, and user privacy.

As the UAE accelerates its leadership in digital finance, the Digital Dirham is set to power a new generation of financial services — fostering innovation, reducing transaction costs, and expanding access to the global economy.

With this forward-looking initiative, the UAE reaffirms its place at the forefront of the digital economy, where tradition and innovation go hand-in-hand to shape a smarter, more inclusive financial future.