UAE unveils new Dirham symbol and digital currency for 2025

The Central Bank of the UAE (CBUAE) has introduced a new symbol for the Dirham, representing both its physical and digital forms, alongside plans to launch the Digital Dirham by late 2025.  

The new Dirham symbol features two horizontal lines inspired by the UAE flag, symbolising stability and national pride.  

Its digital counterpart incorporates a circular design using the flag’s colors—green, white, red, and black—to emphasise identity and innovation.  

“This marks a significant milestone in the implementation of the Digital Dirham programme and aligns with the Central Bank’s strategic vision,” said Khaled Mohamed Balama, Governor of the CBUAE.  

The Digital Dirham is a key initiative under the Financial Infrastructure Transformation (FIT) Programme launched in 2023.  

It aims to position the UAE as a leader in Financial Market Infrastructure (FMI) and digital financial products.  

Backed by Federal Decree-Law No. (54) of 2023, the Digital Dirham will be legally recognised as a universal payment instrument alongside physical currency.  

The blockchain-based currency promises lower transaction costs, enhanced security, and efficient risk management.  

Retail issuance of the Digital Dirham is expected in late 2025, with features like tokenisation for fractionalised assets and smart contracts for automated transactions.  

Individuals and businesses will access the Digital Dirham through licensed institutions such as banks, exchange houses, and fintech firms.  

The CBUAE has developed an integrated platform for its issuance and circulation, including a user-friendly wallet for retail, wholesale, and cross-border payments.  

Hassan Fawaz of GivTrade highlighted that these developments modernise the UAE’s currency system while reflecting its global financial aspirations.  

Samer Hasn from XS.com noted that blockchain technology positions the UAE as an international hub for cross-border trade settlements using local currency.