New UAE dirham symbol: When will digital currency roll out? Will fresh banknotes be issued?

Khaleej Times

27-03-2025

The Central Bank of UAE on Thursday launched new symbols for the national currency, the dirham, in its physical and digital forms, which reflect its national identity and aspiration to become a major financial and cross-border payment gateway.
The first letter of the English name of the dirham will serve as an international symbol representing the nation's currency, incorporating two horizontal lines that embody the stability of the UAE currency and are inspired by the UAE flag.
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.
Currently, all the major global currencies – dollar, euro, yen, rupee, yuan and rouble – have their symbols, reflecting their countries' strength and pride.
New currency notes?
Hassan Fawaz, chairman and founder of GivTrade, said that countries typically issue new currency notes after introducing new symbols, following a systematic approach. 'The process usually involves gradual implementation, with new notes being introduced in phases while old notes remain legal tender during the transition period. The main reason for issuing new series or upgrades is typically security enhancement, combined with the integration of new design elements,' he said.
In 2010, India introduced a new symbol for its currency, the rupee. Later, it printed new rupee notes with the symbol.
The Central Bank of UAE became the first central bank in the Arab region to introduce it.
At par with global currencies
As the UAE currency's usage is growing globally, the new symbols will place Emirati dirham at par with global currencies.
According to the UK's largest foreign exchange provider, the UAE dirham was among the top 10 best-selling currencies between February 2024 to January 2025. It was ranked the sixth best-selling currency in the UK during the period.
Khaled Mohamed Balama, governor of the Central Bank of UAE, said the new symbol for the UAE's national currency in both its physical and digital forms, and the design of the Digital Dirham wallet reflects the significant advancements in the implementation of the Digital Dirham programme.
'It is anticipated that the Digital Dirham as a blockchain-based platform with cutting-edge capabilities shall substantially enhance financial stability, inclusion, resilience, and combatting financial crime. It will further enable the development of innovative digital products, services, and new business models while reducing cost and increasing access to international markets,' he said.
Digital Dirham
The 'Digital Dirham' is a digital version of the UAE's national currency, equipped with high levels of security which will help reduce costs of payments through its reliance on blockchain technology, which by its technical design ensures effective risk management, data protection/privacy, and atomic transaction completion.
The regulator said 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 will facilitate offers several key advantages and characteristics including tokenisation and expanding access to liquidity through digital asset fractionalisation. It will also be 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 Digital Dirham will be accepted as a universal payment instrument in all payment outlets and channels alongside physical currency.
Integrated platform and digital wallet
The Central Bank said it 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.
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.
Cross-border trade payment hub
Hassan Fawaz, chairman and founder of GivTrade, said the UAE's introduction of new dirham symbols and digital forms represents 'a step towards modernising its currency system and is part of the UAE's Financial Infrastructure Transformation (FIT) Programme.'
'The new symbols reflect the UAE's global currency aspirations, supported by its strong economic position with record trade levels of $800 billion. While these changes demonstrate the UAE's commitment to currency modernisation and digital innovation, achieving a global currency status will depend on continued economic growth, successful Digital Dirham implementation, and further integration into international finance systems,' he said.
Samer Hasn, senior market analyst at XS.com, said the new symbols reflect the UAE's commitment to further cement its position as a global financial hub.
'The circle surrounding the symbol in the Dirham logo represents the country's approach to embracing revolutionary blockchain technology. This technology will serve as a cornerstone in positioning the UAE not only as a global financial market centre but also as an international hub for settling cross-border trade payments using a local currency supported by revolutionary technology that aims to make transactions faster, safer, and less costly,' said Hasn.
He added that the UAE may be seeking, through this initiative, to capitalise on the redrawing of the international trade map amid the trade war to enhance its standing in the global financial system.