The UAE government has conducted its first national transaction using the Digital Dirham, which was completed in less than two minutes. The transaction was carried out by the Ministry of Finance and the Dubai Department of Finance, working closely with the Central Bank of the UAE.
Ahmed Ali Meftah, executive director of the central accounts sector at the Department of Finance, said the first pilot transaction was executed via the mBridge platform, the multi-central bank digital currency settlement system developed by the central bank.
He noted the pilot was conducted to test operational readiness and ensure seamless technical integration with the Central Bank’s systems. He explained “The transaction was completed in less than two minutes, underscoring its goal of enhancing operational efficiency and expediting financial settlements between federal and local government entities.”
In an X post, H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, noted, ” Today, Ministry of Finance & Dubai Finance marked a pivotal milestone in the history of government financial transformation in the UAE, as we executed the first government transaction using the Digital Dirham issued by the Central Bank of the UAE, representing the future of the national digital currency in both government and private sector transactions.”
He explained that utilizing the Digital Dirham in government transactions reflects the Ministry’s commitment to accelerating digital transformation in public finance management. He noted that it will enhance transparency and efficiency in government financial systems.
He stated, “This strategic 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.”
In a press release, His Highness 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, affirmed that the Digital Dirham represents a strategic pillar in the UAE’s pursuit of establishing an integrated digital economy and embodies the vision of the wise leadership in consolidating the UAE’s position as a global financial hub.
H.H. Sheikh Mansour highlighted that the first government transaction conducted by the Federal Government and the Dubai Government demonstrates the high level of integration across national financial systems and the advanced technical infrastructure supporting sustainable financial growth and macroeconomic stability.
Mohammed Hadi Al Husseini, Minister of State for Financial Affairs, also noted that the use of the Digital Dirham for government transaction is a qualitative shift in leveraging financial technology, creating an opportunity to develop government and private payments.
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.”
The mBridge platform for multiple central bank digital currencies (CBDCs) was developed and implemented by the Central Bank to enable government entities to conduct financial settlements securely and reliably using the Central Bank digital currency.
In October 2025, an IMF ( International Monetary Fund) statement after an IMF staff team led by Mr. Said Bakhache team visited the UAE, has commended the country on its enhancements to the AED Dirham monetary framework, and the progress in the rollout of the Digital Dirham CBDC project as well as its proactive stablecoin regulations. The IMF statement called on modernization efforts to continue to include careful assessment of risks while promoting local capital market developments.
In August 2025, The Central Bank of UAE announced it was preparing itself to launch Digital Dirham, its CBDC ( Central Bank Digital Currency) by the end of the year.
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