The UAE has revamped the Dirham and is preparing to launch a digital currency.

The updated symbol has two horizontal lines representing the currency’s stability

The UAE's official currency, the Dirham, which has been in circulation since 1973, now features a new symbol as part of the country's digital transformation. The Central Bank of the UAE (CBUAE) unveiled the updated symbol on Thursday, marking a significant step to strengthen the UAE’s position as a global financial leader.

The redesigned Dirham symbol is inspired by the English name "Dirham," with two horizontal lines representing the currency's stability, a nod to the UAE flag. The digital version of the symbol is encircled by the national flag's colors, emphasizing national pride and the country’s forward-thinking financial vision.

This move aligns with the CBUAE’s recent accession to the FX Global Code, making it the first central bank in the Arab world to adopt this voluntary code, which promotes transparency in foreign exchange markets. The new symbol and the digitalization efforts are part of the broader plan to elevate the Dirham’s global presence as digital finance continues to grow.

Additionally, the CBUAE is advancing the Financial Infrastructure Transformation (FIT) programme, which includes the phased launch of the Digital Dirham. Legally recognized under Federal Decree-Law No. (54) of 2023, the Digital Dirham will be accepted across all payment platforms alongside traditional currency.

CBUAE Governor Khaled Mohamed Balama called the initiative a “major milestone,” emphasizing its importance in the central bank’s strategic vision. The Digital Dirham, based on blockchain technology, will improve financial stability, inclusion, and resilience while aiding in the fight against financial crime. It will also promote innovation, reduce costs, and expand access to global markets.

The Digital Dirham will enable atomic transactions, enhanced privacy, and robust risk management. Retail issuance is anticipated in the last quarter of 2025, with users accessing it through licensed banks, exchange houses, and fintech companies.

A secure digital wallet will also be launched, supporting retail and wholesale payments, cross-border transfers, and redemptions, with features like tokenization and smart contracts for more advanced and efficient financial transactions.

In a similar development, Saudi Arabia introduced its new currency symbol for the Saudi Riyal in February 2025, also inspired by Arabic calligraphy. Saudi Arabia is also a full participant in Project mBridge, a cross-border central bank digital currency (CBDC) initiative involving central banks from China, Hong Kong, Thailand, and the UAE.