UAE Completes First Government Financial Payment using Digital Dirham
The UAE has completed its first government financial transaction using the Digital Dirham, marking a major step in the nation’s shift toward a fully integrated digital economy. Because this milestone is part of the Digital Dirham pilot phase under the Financial Infrastructure Transformation Program, it strongly supports the country’s goal of advancing digital payments. Moreover, the collaboration between the Ministry of Finance, the Dubai Department of Finance, and the Central Bank highlights the growing alignment across national financial systems.
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the CBUAE, emphasized that the Digital Dirham serves as a strategic pillar in achieving the UAE’s vision of building a comprehensive digital economy. Al Nahyan noted that the first transaction between the Federal and Dubai Governments demonstrates the high level of integration within the national financial system and highlights the UAE’s technological leadership in sustainable financial growth.
Advancing Government Financial Innovation
The first Digital Dirham transaction reflects the UAE’s commitment to driving innovation in public finance. HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, stated that the use of the Digital Dirham in government transactions underscores the Ministry’s commitment to accelerating digital transformation in public finance management, enhancing transparency, efficiency, and integration across the UAE’s financial ecosystem.
Additionally, Mohammed Hadi Al Husseini, Minister of State for Financial Affairs, described the Digital Dirham transaction as a qualitative shift in leveraging financial technology to advance both government and private payment systems. Al Husseini said the achievement sets a pioneering model of intergovernmental cooperation, boosting international confidence in the UAE’s robust economic framework.
Khaled Mohamed Balama, Governor of the CBUAE, highlighted that the pilot phase of the Digital Dirham marks a major milestone in the nation’s digital transformation journey. Balama reaffirmed the Central Bank’s commitment to working with partners to develop innovative, secure, and globally aligned financial solutions, reinforcing the UAE’s leadership in financial innovation.
Strengthening National Digital Infrastructure
The first transaction also displayed strong technical readiness. Abdulrahman Saleh Al Saleh, Director-General of DOF and Vice Chairman of the CBUAE, said the successful transaction reflects the advanced coordination and integration between federal and local financial systems. He praised the UAE leadership for its continuous efforts to adopt cutting-edge technologies that enhance digital finance and economic sustainability.
Furthermore, Ahmed Ali Meftah, Executive Director of the Central Accounts Sector at DOF, noted that the pilot transaction was executed through the mBridge government payments platform, developed by the CBUAE to support multi-CBDC operations. The transaction was completed in under two minutes, demonstrating the system’s speed, efficiency, and operational readiness.
The mBridge platform enables government entities to conduct secure and reliable financial settlements using the Central Bank’s digital currency. Because it integrates directly with the Digital Dirham initiative, it offers a unified, intermediary-free channel for issuing, receiving, and settling payments, reducing costs while improving transparency and accuracy. Ultimately, the first government transaction using the Digital Dirham signals a new era in national finance and strengthens the UAE’s position as a leader in digital transformation across government, financial, and business sectors.
