The UAE has completed its first government financial transaction using the Digital Dirham, marking a significant milestone in the country’s drive to build an integrated and secure digital economy.
The transaction, executed jointly by the Ministry of Finance and Dubai Finance (DOF) in collaboration with the Central Bank of the UAE, represents a key step toward the broader adoption of the national digital currency across government and private sector operations.
The initiative reaffirms the UAE’s role as a pioneer in next-generation financial technologies.
UAE Digital Dirham transaction
This achievement forms part of the pilot phase of the Digital Dirham project, initiated by the Central Bank of the UAE under the Financial Infrastructure Transformation (FIT) Programme in coordination with local financial authorities.
The project aims to accelerate digital payments adoption and strengthen the UAE’s position as a global hub for financial innovation.
Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Central Bank of the UAE, said the Digital Dirham represents a strategic pillar in the nation’s vision to build an integrated digital economy, consolidating the UAE’s position as a global financial centre.
He noted that conducting the first government transaction between the Federal Government and the Dubai Government reflects the integration of national financial systems and the advanced technical infrastructure supporting sustainable growth and macroeconomic stability.
Historic transaction
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, said that using the Digital Dirham in government transactions highlights the Ministry’s commitment to accelerating digital transformation in public finance management, while enhancing transparency and efficiency in government financial systems.
He emphasised that this step reinforces the integration of the national financial ecosystem and aligns with the UAE leadership’s vision of building an advanced, innovative, and trustworthy digital national economy.
Mohammed Hadi Al Husseini, Minister of State for Financial Affairs, said: “The use of the Digital Dirham for government transactions is a qualitative shift in leveraging financial technology, creating an opportunity to develop government and private payments.
“Conducting the first government transaction using the Digital Dirham in partnership with the Central Bank of the UAE serves as a pioneering model of corporate integration and enhances global confidence in the UAE’s economic system.”
Khaled Mohamed Balama, Governor of the Central Bank of the UAE, said: “Launching the pilot phase of the Digital Dirham marks a qualitative milestone in the UAE’s digital transformation. It reflects the vision of the wise leadership and the UAE’s commitment to advancing national payment systems, strengthening financial stability, enhancing the country’s financial ecosystem, and consolidating its global leadership in financial innovation.”
He said the Central Bank remains committed to working with partners to develop cutting-edge financial solutions that align with global shifts, reinforce national stability, and help build a globally competitive digital economy.
Integration with mBridge platform
Abdulrahman Saleh Al Saleh, Director General of DOF and Vice Chairman of the Central Bank of the UAE, said the successful execution of the first transaction demonstrates the high level of integration among the country’s financial systems and the advanced infrastructure enabling a fully integrated national economy.
Ahmed Ali Meftah, Executive Director of Central Accounts Sector at DOF, said the pilot transaction was conducted via the government payments platform mBridge to test operational readiness and ensure seamless integration with the Central Bank’s systems.
He noted that the transaction was completed in less than two minutes, underscoring its efficiency and ability to expedite settlements between federal and local government entities.
Building the foundation for a digital economy
The mBridge platform enables government entities to conduct settlements securely using central bank digital currency (CBDC). Integrated with the Digital Dirham initiative, it provides a unified channel for issuing, receiving, and settling payments digitally without intermediaries.
The platform enhances efficiency, transparency, and cost-effectiveness, supporting the UAE’s digital transformation and consolidating its global leadership in financial technology.
The initiative underlines the UAE’s steady progress toward a fully integrated digital economy, reinforcing its regional and global leadership in adopting advanced technological solutions that promote transparency, efficiency, and sustainability across all financial systems.
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