UAE rebrands the Dirham and readies digital currency launch

The Dirham — the UAE’s official currency which has been in existence since 1973 — now has a new symbol as part of a fresh digital push.

The Central Bank of the UAE (CBUAE) revealed on Thursday the new currency symbol as part of a broader effort to strengthen the UAE’s position as a leading global financial hub.

The updated symbol draws from the English name “Dirham,” with two horizontal lines representing the currency’s stability, reflecting elements of the UAE flag. For the digital version, the symbol is enclosed in a circle with the national flag’s colours: an emblem meant to underscore national pride and the country’s forward-looking financial vision.

The move coincides with the CBUAE’s accession to the FX Global Code, making it the first central bank in the Arab region to join the voluntary code that promotes fair and transparent practices in the foreign exchange market. The new symbol and digital developments reflect efforts to raise the Dirham’s international profile, especially as digital finance gains pace.

As part of the broader Financial Infrastructure Transformation (FIT) programme launched in 2023, the CBUAE is preparing for the phased issuance of the Digital Dirham. Legally recognised as a universal payment instrument under Federal Decree-Law No. (54) of 2023, the Digital Dirham will be accepted across all payment platforms and channels, alongside physical currency.

CBUAE Governor Khaled Mohamed Balama described the initiative as a “major milestone” for the central bank.

“This marks a major milestone in the implementation of the Digital Dirham programme and aligns with the Central Bank’s strategic vision,” he said.

“The Digital Dirham, as a blockchain-based platform with cutting-edge capabilities, will enhance financial stability, inclusion, and resilience, while helping to combat financial crime,” Balama added. “It will also drive innovation in digital products and services, reduce costs, and expand access to global markets.”

Built on blockchain architecture, the Digital Dirham aims to provide atomic transaction completion, improved privacy, and strong risk management. Retail issuance is expected in the last quarter of 2025, with individuals and businesses set to access it via licensed banks, exchange houses, and fintechs.

The CBUAE is also rolling out a secure and integrated digital wallet that will support a wide range of use cases, from retail and wholesale payments to cross-border transfers and redemptions. Features such as tokenisation and smart contracts are expected to support more complex and automated financial transactions while enhancing efficiency and inclusion.

Similar move in Saudi

The UAE’s move mirrors a similar initiative in Saudi Arabia, where the Saudi Central Bank (SAMA) unveiled an official symbol for the Saudi Riyal in February 2025. Inspired by Arabic calligraphy, the new Riyal symbol is designed to reinforce the currency’s identity and usage in local and international financial contexts.

Saudi Arabia has also become a full participant in Project mBridge, a cross-border central bank digital currency (CBDC) pilot involving central banks from China, Hong Kong, Thailand, and the UAE. The project is seen as a key initiative to modernise international trade payments through blockchain-powered CBDCs.