In a groundbreaking step toward digital transformation, the UAE Ministry of Finance and Dubai’s Department of Finance have successfully executed the country’s first government transaction using the digital dirham. The initiative, conducted in collaboration with the Central Bank of the UAE (CBUAE), marks a major milestone in the experimental phase of the national digital currency project and reflects the UAE’s leadership in embracing next-generation financial technologies.
This trial transaction forms part of the Central Bank’s broader Financial Infrastructure Transformation Program, aiming to fast-track the adoption of digital solutions and solidify the UAE’s position as a global hub for financial innovation.
A Strategic Move Towards a Digital Economy
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President and Deputy Prime Minister of the UAE, Chairman of the Presidential Court, and Chairman of the Central Bank, hailed the digital dirham as a strategic pillar in building a fully integrated digital economy. He commended the successful execution of this first-of-its-kind government transaction between the federal government and the Government of Dubai, calling it a testament to the country’s robust financial infrastructure and commitment to sustainable economic growth.
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, emphasized the Ministry’s dedication to accelerating digital transformation in public financial management. He noted that leveraging the digital dirham improves transparency and efficiency within the government’s financial systems, aligning with the UAE’s vision of a tech-driven, innovation-led economy.
Writing on X (formerly Twitter), His Highness Sheikh Maktoum described the transaction as a pivotal moment in the UAE’s financial transformation, highlighting the digital dirham’s future role in streamlining both public and private sector payments.
A National Milestone in Digital Payments
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, called the move a transformational leap in financial technology application, stating it opens wide opportunities to enhance payment systems across government entities. He praised the effort as a model of institutional cooperation that boosts global confidence in the UAE’s economic framework.
Central Bank’s Role in Pioneering Innovation
Khaled Mohamed Balama, Governor of the Central Bank, underscored the significance of this launch, describing it as a milestone in the UAE’s digital journey. He reaffirmed the Central Bank’s commitment to working with strategic partners to deliver cutting-edge financial solutions that bolster economic resilience and ensure long-term stability.
Abdulrahman Saleh Al Saleh, Director General of Dubai’s Department of Finance and Vice Chairman of the Central Bank Board, expressed gratitude to the nation’s leadership and applauded the level of integration between the federal and local financial systems. He emphasized the UAE’s consistent leadership in adopting modern financial technologies and building a mature digital and institutional infrastructure.
The Role of the “Al Jisr” Platform
The experimental transaction was conducted via the “Al Jisr” (The Bridge) platform, a multi-CBDC payment system developed by the Central Bank. According to Ahmed Ali Moftah, Executive Director of Central Accounts at Dubai’s Department of Finance, the transaction was completed in less than two minutes. He noted that the goal of this pilot is to enhance operational efficiency and speed up financial settlements between government bodies.
The “Al Jisr” platform is fully integrated with the Central Bank’s digital dirham initiative, functioning as a secure and efficient digital channel for issuing, receiving, and settling government payments. It eliminates intermediaries and streamlines transactions, ultimately lowering operational costs and improving financial accuracy.
Driving Forward the UAE’s Digital Vision
By enabling faster transactions and greater transparency, this initiative supports the UAE’s broader digital transformation agenda. It reinforces the nation’s global standing as a leader in advanced fintech adoption and sets a blueprint for future financial modernization.
The successful implementation of the digital dirham in government dealings signals a promising future for digital currency integration across all sectors—enhancing economic competitiveness, boosting trust in digital systems, and paving the way for a fully digitized national economy.
