Ministry of Finance and Dubai Finance Conduct UAE’s First Government Transaction Using Digital Dirham
The Ministry of Finance (MoF) and Dubai Finance Department (DOF) have announced the successful execution of the first government financial transaction using the Digital Dirham, in collaboration with the Central Bank of the UAE (CBUAE). This historic step marks a new chapter in the nation’s digital transformation, reaffirming the UAE’s pioneering leadership in next-generation financial technologies and digital economy innovation.
A Milestone in the UAE’s Digital Finance Evolution
The transaction forms part of the pilot phase of the Digital Dirham Project, launched by the Central Bank of the UAE under the Financial Infrastructure Transformation (FIT) Programme. The initiative aims to accelerate the adoption of secure, efficient digital payments and further strengthen the UAE’s position as a global hub for financial innovation.
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Central Bank of the UAE, affirmed that the Digital Dirham represents a strategic pillar of the UAE’s vision for an integrated digital economy. He emphasized that the successful execution of this government transaction reflects the nation’s advanced financial infrastructure and strong coordination between federal and local financial entities.
Accelerating Digital Transformation in Public Finance
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, stated that using the Digital Dirham in government transactions demonstrates the Ministry of Finance’s commitment to advancing digital transformation in public finance management.
He noted that this step enhances efficiency, transparency, and integration across national financial systems, aligning with the UAE’s vision to establish a trusted, innovative digital economy.
Reinforcing Financial Innovation and Global Confidence
His Excellency Mohammed Hadi Al Husseini, Minister of State for Financial Affairs, said:
“The use of the Digital Dirham for government transactions is a qualitative leap in leveraging financial technology. It creates new opportunities for developing both government and private payment systems and enhances global confidence in the UAE’s robust economic ecosystem.”
His Excellency Khaled Mohamed Balama, Governor of the Central Bank of the UAE, highlighted that launching the pilot phase represents a key milestone in the nation’s digital transformation journey.
He added that the CBUAE remains committed to collaborating with strategic partners to build innovative and globally competitive financial solutions that reinforce stability and support a dynamic, digital economy.
Collaboration Between Federal and Local Entities
His Excellency Abdulrahman Saleh Al Saleh, Director General of DOF and Vice Chairman of the Central Bank of the UAE, commended the leadership’s vision in adopting cutting-edge technologies:
“The first Digital Dirham transaction showcases the seamless integration of the UAE’s financial systems and the high level of coordination with the Central Bank, reflecting the advanced digital infrastructure that underpins our collective national economic ambitions.”
Powered by mBridge: Redefining Efficiency in Financial Settlements
Ahmed Ali Meftah, Executive Director of the Central Accounts Sector at DOF, revealed that the pilot transaction was executed via the mBridge platform—a multiple central bank digital currency (CBDC) system developed by the CBUAE.
The transaction, completed in under two minutes, demonstrated the platform’s operational efficiency and seamless integration with the Central Bank’s systems.
mBridge enables government entities to conduct secure, real-time financial settlements using the Central Bank Digital Currency, eliminating intermediaries while enhancing transparency, accuracy, and cost efficiency.
Driving the UAE’s Vision for a Fully Integrated Digital Economy
The Digital Dirham initiative supports the UAE’s broader objective of creating a comprehensive, technology-driven financial ecosystem. By reinforcing operational integration and enabling transparent, efficient transactions, the initiative accelerates the nation’s transition toward a fully digital economy.
This milestone further positions the UAE as a global leader in advanced financial technologies, setting a model for digital transformation across government, finance, and business sectors.
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