UAE Prepares Digital Dirham

The Central Bank of the United Arab Emirates (CBUAE) is fast-tracking one of its most ambitious financial projects yet, the Digital Dirham. This Central Bank Digital Currency (CBDC) is set for rollout between October and December 2025, bringing a modern solution to the country’s financial system.

The initiative is part of the UAE’s Financial Infrastructure Transformation (FIT) Programme, a plan to modernize payments and strengthen the country’s role as a global financial hub. A framework published in July 2025 outlined the design, technology, and policies guiding the Digital Dirham.

Technology and Infrastructure

The Digital Dirham will use distributed ledger technology (DLT) to process payments quickly and securely. Retail purchases and wholesale transfers will be settled instantly, making the system efficient for both individuals and institutions. Every transaction will be protected against fraud while still respecting privacy.

The design also ensures smooth integration with banks, fintechs, and payment providers. This makes adoption easier for users and businesses, turning the Digital Dirham into a backbone for digital finance in the UAE.

Strategic Objectives

The project is more than a payment tool. It reflects a broader national vision.

• Strengthen financial sovereignty by reducing reliance on foreign systems

• Expand financial inclusion with secure digital money for all

• Encourage innovation by enabling programmable money and new digital services

• Facilitate cross-border trade by linking with other CBDCs for faster international payments

These objectives highlight how the UAE is shaping a forward-looking financial system that can serve both local and global needs.

Impact on Citizens and Businesses

• For citizens, the Digital Dirham will make daily payments faster and more secure. Whether paying at a market, sending money to family, or shopping online, transactions will be instant and trusted.
• For businesses, the benefits include quicker settlements, reduced costs, and easier global trade. Even small merchants and startups will gain from a unified system that customers everywhere can use. 
• On a national level, the Digital Dirham will improve transparency, strengthen defenses against cyber risks, and reinforce the UAE’s reputation as a hub for innovation.