The UAE Ministry of Finance and Dubai Finance Department (DOF) have successfully executed the country’s first government financial transaction using the Digital Dirham, marking a historic step toward integrating digital currency into official operations.
The transaction, completed in under two minutes, was carried out in collaboration with the Central Bank of the UAE (CBUAE) as part of the pilot phase of the Digital Dirham project, a key initiative under the Financial Infrastructure Transformation (FIT) Program.
Officials said the transaction demonstrates the UAE’s readiness to adopt central bank digital currency (CBDC) technology, reinforcing the nation’s position as a global leader in next-generation financial systems.
Digital Dirham: A Strategic Pillar of UAE’s Digital Economy Vision
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the CBUAE, described the Digital Dirham as a strategic pillar of the UAE’s digital economy transformation.
He emphasized that the successful pilot highlights “the high level of integration across national financial systems” and the advanced infrastructure supporting sustainable economic growth.
His Highness noted that the initiative embodies the country’s leadership vision in consolidating the UAE’s role as a global financial hub and a center for innovation in financial technology.
Enhancing Efficiency and Transparency with the Digital Dirham
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, said the adoption of the Digital Dirham reflects the UAE’s commitment to digital transformation in public finance management.
He added that the step will enhance efficiency, transparency, and integration across government financial systems, supporting the broader national strategy for building a trustworthy digital economy.
“The use of the Digital Dirham for government transactions is a qualitative shift in leveraging financial technology,” said Mohammed Hadi Al Husseini, Minister of State for Financial Affairs. “This model enhances global confidence in the UAE’s economic system and sets a precedent for government and private payments.”
mBridge Platform: Integrating Digital Dirham for Seamless Settlement
The transaction was executed through mBridge, a multi-central bank digital currency platform developed by the CBUAE to facilitate secure and direct settlements using digital currency.
Fully integrated with the Digital Dirham framework, mBridge enables government entities to issue, receive, and settle payments without intermediaries, reducing transaction time and operational costs while improving financial accuracy and transparency.
Ahmed Ali Meftah, Executive Director of the Central Accounts Sector at DOF, said the pilot aimed to test technical integration and operational readiness, underscoring the system’s capability to expedite settlements between federal and local government entities.
UAE Sets Global Benchmarks in Digital Governance and Finance
The successful transaction represents a major milestone in the UAE’s journey toward a fully integrated digital economy, supporting the nation’s goals of sustainability, innovation, and economic resilience.
By leading the region in the adoption of central bank digital currency, the UAE continues to set global benchmarks in financial modernization and digital governance, strengthening its reputation as a pioneer in financial technology and smart government innovation.
