The UAE has successfully completed its first interbank
transaction using the Digital Dirham pilot, marking a significant advancement
in the nation’s journey toward a fully digitised economy with advanced
financial innovations. The transaction, completed in under two minutes using
the mBridge platform, was conducted by the Ministry of Finance and the Dubai
Department of Finance in collaboration with the Central Bank of the UAE.
UAE Takes a Major Step in Digital Finance
The United Arab Emirates has achieved a key milestone in its
Financial Infrastructure Transformation (FIT) Programme with the first
interbank transaction conducted using the Digital Dirham. As reported by
multiple media outlets including Khaleej Times, The
National News by Fatima Al Shamsi, and Gulf News by
Saeed Al Mazrouei, this transaction signifies a major step forward in embedding
next-generation financial technology in the country’s public sector operations.
Ahmed Ali Meftah, Executive Director of the Central Accounts Sector at the Dubai Department of Finance (DOF), confirmed the transaction was executed via the mBridge platform — a multi-central bank digital currency settlement system developed by the Central Bank of the UAE. He stated,
“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.”
Digital Dirham and mBridge: Foundations for a Digital Economy
The Digital Dirham, developed as part of the FIT programme and in close cooperation with local financial authorities, is intended to accelerate the adoption of digital payments within the UAE and bolster the nation’s reputation as a global hub for financial innovation. Khaled Mohamed Balama, Governor of the Central Bank of the UAE, described this milestone as
“a qualitative milestone in the UAE’s digital transformation,”
highlighting the
country’s dedication to advancing national payment systems and financial
stability.
The mBridge platform plays a crucial role as the government payments settlement infrastructure. According to Abdulrahman Saleh Al Saleh, Director General of DOF and Vice Chairman of the Central Bank of the UAE, the platform’s integration demonstrates
“the high level of integration among the country’s financial systems and the advanced infrastructure enabling a fully integrated national economy.”
Supporting UAE’s Digital Economy Vision
The UAE’s Digital Dirham initiative aligns with the country's
wider digital economy strategy aimed at modernising financial infrastructure
while upholding regulatory standards and cyber resilience. The Central Bank
remains committed to collaborating with strategic partners to develop
cutting-edge financial solutions, said Khaled Balama, ensuring the UAE
maintains its leadership role in global financial innovation.
The transaction marks a continuation of earlier pilots,
including a notable cross-border payment where the UAE successfully transferred
AED 50 million to China. This experience paved the way for domestic deployment
to support faster, lower-cost, and more transparent settlements.
Statements from Leading Officials and Agencies
Ahmed Ali Meftah of DOF emphasised that the pilot transaction was conducted to
“test operational readiness and ensure seamless technical integration with the Central Bank’s systems.”
He further noted the
transaction’s swift execution as proof of the system’s efficiency and ability
to expedite financial settlements between government entities.
Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister, and Chairman of the Central Bank of the UAE, described the Digital Dirham as
“a strategic pillar”
in the UAE’s vision for an integrated digital
economy, reflecting the country’s commitment to future-proof its financial
ecosystem.
Amna Mohammed Lootah, Director of the Digital Payment
Systems Regulatory Division at DOF, highlighted the strategic objectives of the
Dubai Cashless Strategy, which aims to digitise 90% of financial transactions
across the emirate by 2026 — a goal supported by this Digital Dirham
initiative.
Operational and Economic Impact
The Digital Dirham transaction’s completion in less than two
minutes showcases the system’s efficiency and potential to reduce transaction
costs, enhance transparency, and support financial inclusion, as documented
by Dubai92.com. This initiative not only accelerates government
financial processes but also reinforces the UAE’s reputation as a pioneer in
FinTech innovation.
The central bank’s Financial Infrastructure Transformation
agenda, which includes the Digital Dirham, instant payment platforms, open
finance frameworks, and enhanced digital identity systems, is designed to build
a strong foundation for a competitive digital economy.
The UAE’s digital financial milestone reflects a concerted effort by government authorities and financial institutions to modernise and digitise the national economy infrastructure. The successful pilot transaction via the Digital Dirham and mBridge platform marks a pivotal moment in the country’s ongoing digital transformation journey.