UAE Digital Dirham Transaction Marks CBDC Milestone
The United Arab Emirates completed its first government transaction using the Digital Dirham on November 11, 2025. The Ministry of Finance and the Dubai Department of Finance executed the payment alongside the Central Bank of the UAE. This milestone represents a significant advancement in the nation’s Financial Infrastructure Transformation Programme.
The transaction took less than two minutes to complete. The payment was processed without intermediaries involved. Officials describe this achievement as advancing the integration of CBDC technology into national fiscal operations. The successful execution demonstrates the technical readiness of the Digital Dirham infrastructure.
Digital Dirham Pilot Phase Shows Technical Excellence
The transaction marks a significant step towards broader adoption across government and private sector operations. Ahmed Ali Meftah explained that the pilot transaction was conducted to test operational readiness and ensure seamless technical integration with Central Bank systems. The swift completion underscores the platform’s ability to enhance operational efficiency.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum emphasized that using the Digital Dirham reflects the Ministry’s commitment to accelerating digital transformation in public finance management. This strategic step reinforces the integration of the national financial ecosystem. The initiative aligns with the UAE leadership’s vision of building an advanced digital national economy.
mBridge Platform Enables Digital Dirham Transactions
The transaction was executed through mBridge, a government payments platform developed by the Central Bank to enable settlements using central bank digital currency. The platform provides a unified channel for issuing, receiving, and settling government payments digitally without intermediaries. This infrastructure enhances operational efficiency and reduces transaction costs.
In January 2024, UAE authorities executed an international value transfer using Digital Dirham technology via the mBridge system to China. That operation involved coordination with China’s monetary authorities, Hong Kong’s financial regulator, and Thailand’s central bank through the Bank for International Settlements Innovation Hub. The cross-border pilot transferred 50 million dirhams successfully.
Financial Infrastructure Transformation Programme Advances
Sheikh Mansour bin Zayed Al Nahyan stated that the Digital Dirham represents a strategic pillar in establishing an integrated digital economy. The Digital Dirham constitutes a central element within the Financial Infrastructure Transformation framework, including immediate payment systems and open finance structures. These initiatives promote transparency and efficiency in government financial systems.
The Central Bank announced its intention to issue a retail CBDC during the final quarter of 2025. Individuals and businesses will obtain the digital currency through licensed financial institutions. The phased rollout focuses on payment features to complement traditional financial products.
Digital Dirham CBDC Strengthens UAE Financial Leadership
Governor Khaled Mohamed Balama described the pilot as advancing national payment infrastructure and reinforcing the financial ecosystem. The Digital Dirham initiative positions the UAE as a pioneer in financial innovation. The successful transaction demonstrates the high level of integration across national financial systems.
The program targets faster digital payment uptake, expanded financial access, and enhanced status as a global financial center. The implementation supports the UAE’s transition from international testing to domestic deployment. This progression paves the way for wider adoption across public and private sectors.
The Digital Dirham transaction validates the UAE’s commitment to modernizing financial infrastructure. The successful pilot demonstrates technical capability and operational readiness. As the rollout continues, the nation strengthens its position as a leader in digital currency adoption.
