The Central Bank of the UAE (CBUAE) is leading a radical transformation in the financial landscape through strategic initiatives that have positioned the nation at the forefront of global innovation. This success is demonstrated by the doubling of licensed fintech companies to reach 36, alongside the launch of the "mBridge" platform for international settlements, the completion of the "Digital Dirham" infrastructure as an official payment instrument, and the activation of "Al Tariq" open finance platform. These milestones underscore the country's commitment to shaping a sustainable financial future built on next-generation solutions.

The Digital Dirham

The Digital Dirham has become an integral part of the monetary system, complementing physical currency after acquiring full legal tender status under Federal Decree-Law No. (54) of 2023. The CBUAE launched the unified visual identity for the national currency in both its physical and digital forms. The new currency symbol, derived from the abbreviation of the Dirham, features two horizontal lines symbolizing the strength of the nation's financial and monetary stability, carrying deep national significance. In its digital form, the symbol is enclosed in a circle adorned with the colors of the UAE flag, embodying pride in national identity and openness toward a more prosperous future driven by an innovative financial ecosystem with a global outlook.

In a qualitative advancement to expand the domestic digital currency's scope to encompass all financial transactions across the public and private sectors, the first government financial transaction using the Digital Dirham was executed between the Ministry of Finance and Dubai Finance, in cooperation with the CBUAE. This reflects the UAE''s leadership in adopting innovative, forward-looking financial solutions.

"Al Tariq" Open Finance Platform

The national open finance platform, "Al Tariq," has achieved full operational readiness, empowering consumers with complete control over their financial data. To guarantee the highest standards of security, the law mandates administrative penalties of up to AED 1 billion for non-compliant establishments, thereby reinforcing trust in this innovative ecosystem.

"mBridge" CrossBorder Settlement Platform

In a strategic move to enhance international financial efficiency, the CBUAE successfully executed the live launch of the "mBridge" platform for digital currencies. The first live digital transaction between the UAE and China proved the platform's efficiency in conducting instant, secure, and low-cost financial settlements, opening new horizons for cross-border international trade.

Developing the International Central Securities Depository (ICSD)

The CBUAE has formulated a plan to develop the International Central Securities Depository (ICSD) system, aiming to automate and standardize settlement processes in alignment with global standards. This system will serve as a bridge connecting domestic debt markets with key global markets, thereby stimulating the flow of foreign direct investment (FDI).

Data and Innovation Ecosystem

Through its Enterprise Data Management (EDM) system, the CBUAE has succeeded in consolidating data across 36 strategic domains. Work is currently underway to select more than 80 artificial intelligence (AI) and machine learning (ML) use cases to automate supervisory processes and monitor markets with high precision, ensuring a proactive approach to future financial challenges.

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