Dubai: The UAE has achieved a major milestone by completing its first-ever government transaction using the Digital Dirham. This move is a key step that shows the nation is focused on creating a cashless and fully digital economy. This milestone follows a successful cross-border pilot earlier this year, during which the Emirates transferred AED 50 million to China using the same platform.
The MoF has partnered with DOF and CBUAE to execute this historic transaction. Speaking about this milestone, officials said this achievement marks the start of the Digital Dirham’s integration into government operations and public financial systems. With this move, the Emirates has strengthened its position as a regional and global leader in digital finance and innovation.
UAE Advances Toward a Fully Digital Financial System
The recent Digital Dirham transaction is a part of the ongoing pilot phase of this innovative project, launched under CBUAE’s FIT program. This initiative mainly focuses on boosting digital payment adoption, digital banking inclusion, and cementing the UAE’s position as a globally leading financial hub.
Dubai’s Deputy Ruler and the Minister of the UAE’s Finance Minister, His Highness Maktoum bin Mohammed, shared information about this milestone on X.
- In his X post, he said, on November 11, 2025, the UAE’s MoF and DOF have marked a major step in the country’s digital finance journey.
- He added that conducting a government transaction using the Digital Dirham reflects the future of digital currency in both the public and private sector operations.
- He also said this, using Digital Dirham in government payment highlights the MoF’s commitment to speed up the digital transformation in public finance management.
- This initiative aligns with the UAE’s vision to secure a leading position in a smart, transparent, and technology-driven economy.
In January of the previous year, the UAE successfully made its first international money transfer using the Digital Dirham on the mBridge platform. During this cross-border payment, the Emirates has transferred funds directly to China. That pilot project showed that using CBDCs can make international payments faster and more secure.
Officials said the latest government-to-government transaction highlights the UAE’s transition from international testing to domestic implementation. This means that soon, the Digital Dirham will be widely adopted across public and private sectors. The continuous innovation behind this project represents the best startup story of how technology and governance can come together to build a smarter financial ecosystem.
A Fully Integrated Digital Payment System
The transaction was carried out using the mBridge platform. This digital payments platform is developed by CBUAE. By using this system, the Emirati government can send and receive payments directly using the Digital Dirham. This means now there is no need for third-party service providers.
DOF’s Central Accounts Sector Executive Director, Ahmed Ali Meftah, said that the pilot was done using mBridge.
- It was carried out to test how smoothly it connects with the Central Bank’s systems.
- He further added that this transaction took less than two minutes to complete.
- This shows how this new platform can make government payments faster and more reliable.
CBUAE’s VC and DOF’s DG, Abdualrahman Saleh Al Saleh, also shared his thoughts on this big achievement.
- He said the success of the first Digital Dirham transaction shows the UAE’s strong commitment to using the latest finance technologies.
- He also added that this move highlights the superior level of coordination between the Central Bank and government entities.
- He also said that this initiative is supported by the advanced digital infrastructure and a vision to develop a fully connected national economy.
Expanding the Use of the Digital Dirham Across the UAE
The mBridge platform was first tested internationally, and now it is being used in the UAE. Officials said that this step supports the country’s digital economy strategy. This initiative not only focuses on modernizing financial systems but also maintains strong regulations and cybersecurity.
The Digital Dirham is also an important part of the UAE’s Financial Infrastructure Transformation program. This program aims to improve instant payments, open finance, and secure digital identity systems.
Officials also said this step clearly shows the progress in the UAE’s digital currency journey, as now the country is preparing to move from testing to real-world use in public finance. By boosting both local efficiency and global financial links, it supports the Emirates’ goal to become a global leader in financial innovation.
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