The Central Bank of the UAE, on Thursday, unveiled the new symbol for the national currency in its physical and digital forms.
The symbol was derived from the English name of the dirham to serve as an international symbol representing the nation's currency, incorporating two horizontal lines that embody the stability of the UAE dirham and inspired by the UAE flag, to enhance financial and monetary stability.
On the other hand, the digital dirham symbol features a circle surrounding the physical currency symbol, using the colours of the UAE flag to reflect pride and national identity. The symbol's choice shows the national currency's global reach, openness to a more prosperous future and commitment to developing an innovative local financial ecosystem with a global perspective.
Rooted in the UAE's national identity, this concept reimagines the lines of the flag, seamlessly integrating them into the design of the letter "D" for dirham.
The pointed curves are inspired by the classical Arabic calligraphy, where scripts such as Thuluth and Diwani often features sharp, sweeping endings that express both grace and authority.
Infused with the bold colours of the national flag, the design ensures instant recognition and a dynamic presence across digital platforms, blending national identity with innovation.
Encircling the 'D' symbol is a carefully crafted ring, symbolising a digital token — representing security, continuity, and the UAE's commitment to a future-focused financial ecosystem. This circular element reinforces the vision of a connected, evolving digital economy while providing a steadfast foundation for progress.
In May 1973, the UAE introduced the dirham, marking its integration into the global economy and the World Bank. More than just a currency, the dirham stands as a testament to the nation's identity, values, and remarkable progress.
The unveiling of the new dirham symbol is in conjunction with the CBUAE’s recent joining to the FX Global Code, becoming the first central bank in the Arab region to do so.
This comes as part of the CBUAE’s efforts to establish the UAE dirham as an international currency, along with enhancing the integrity and best practices in the exchange market of the national currency against foreign currencies and promoting ethical practices and sound professional rules for its participants.
The CBUAE issues the "Digital Dirham" as a digital version of the UAE's national currency, characterised by high levels of security and efficiency, contributing to reduced costs of payments through its reliance on blockchain technology, which by its technical design insures effective risk management, data protection/privacy, and atomic transaction completion.
Individuals and businesses will be able to obtain the Digital Dirham through licensed financial institutions, such as banks, exchange houses, finance companies and fintech companies, according to the use cases that will be activated. The issuance of the Digital Dirham is expected to take place in the last quarter of the year 2025 for the retail sector.
The Digital Dirham offers several key advantages and characteristics that drive development and innovation, including:
Tokenisation: The Digital Dirham facilitates tokenisation, enhancing financial inclusion and efficiency, and expanding access to liquidity through digital asset fractionalisation.
Smart contracts: The Digital Dirham is used with smart contracts to programme the execution of complex transactions automatically, settling them instantly, in addition to multi-stage and multi-party transactions that involve conditions or obligations.
The CBUAE has developed an integrated and secure platform for the issuance, circulation, and use of the Digital Dirham, including a Digital Dirham wallet.
The wallet is designed for ease of use and management by both individuals and businesses, enabling a number of financial transactions, including retail, wholesale, and cross-border payments, money transfers and withdrawals, top-ups, and redemption of the Digital Dirham when needed. This ensures a seamless and convenient user experience, in line with industry best standards and practices.
The platform is also characterised by its ability to easily incorporate innovative financial solutions tailored to emerging use cases driven by the rapid growth of the digital economy in the UAE. This contributes to ensuring a flexible and advanced financial system, further solidifying the UAE's competitive edge as a leading financial hub and global digital payments platform.
