UAE CENTRAL BANK GOLDEN JUBILEE
50 YEARS OF CONTRIBUTIONS TO THE UAE’s FINANCIAL SECTOR
KHALEEJ TIMES | MONDAY, JUNE 2, 2025
CBUAE: A FUTURE-READY ENTITY
Embracing digital transformation, the central bank has positioned itself as a future-ready institution, driving the UAE’s vision to become a global financial hub
The Central Bank of the UAE’s golden jubilee marks a significant milestone in its journey towards becoming a future-ready institution. Over the past five decades, the bank has evolved alongside the dynamic financial landscape by laying a solid foundation of banking sector, championing innovations in digital transformation and Islamic finance to meet the modern economic needs of its citizens.
Embracing digital transformation, the central bank has positioned itself as a future-ready institution, driving the UAE’s vision to become a global financial hub. It not only takes appropriate steps to ensure competitiveness and transparency, but also promote Islamic finance in line with the UAE’s sustainable economic agenda.
Khaled Mohamed Balama, Governor, Central Bank of the UAE (CBUAE), in annual report of 2024 said the central bank continued its journey of excellence and leadership last year and it was reflected in the achievement of exceptional milestones such as the issuance of legislations and regulations to enhance regulatory and supervisory framework; guidance to ensure compliance, improve the governance of licensed financial institutions and efficiently manage risks.
“We are proud to work on the launch of the ‘Open Finance Platform’, which will be the first platform of its kind globally and distinguished by unique features that take into account the interests of consumers and ensure enhanced cus-
tomer experiences,” the Governor said.
“We also continue to develop our ‘Supervisory Technology Platform’, which aims to enhance the efficiency and effectiveness of supervisory operations by automating certain activities and providing access to more insightful regulatory data,” he added.
In addition, in line with the vision and directives of the wise leadership on the future of government services and its transformation into a global model, the CBUAE worked to achieve the objectives of the nation-wide ‘Zero Government Bureaucracy’ programme through improving the quality of services in the financial sector.
Under the Financial Infrastructure Transformation (FIT) programme, with an 85 per cent completion rate by 2024, the CBUAE introduced groundbreaking initiatives like the Digital Dirham and Central Bank Digital Currency (CBDC), showcased during the anniversary via a cross-border payment on the mBridge platform. The ‘Aani’ instant payment platform and ‘Open Finance’ further enhance seamless, secure transactions, fostering financial inclusion in the country.
As part of its digital transformation strategy, the central bank has successfully integrated advanced technologies such as
blockchain, artificial intelligence, cloud technologies and digital currencies, enhancing operational efficiency, transparency, and accessibility. This proactive approach ensures that financial services are readily available to all segments of society, promoting financial inclusion and literacy.
PIONEER IN ISLAMIC FINANCE
The central bank has also been a pioneer in Islamic finance, aligning its banking practices with ethical and Shariah-compliant principles. This commitment has not only diversified the financial sector but also attracted investments from local and international markets, fostering growth and stability.
The UAE Islamic banks’ assets have crossed the Dh1 trillion mark in 2024, which shows success of the CBUAE policy initiatives as well as confidence of global investors on its Shariah-compliance banking. The share of Islamic banks in the total banking assets was 24 per cent as of end-2024, according to the global rating agency Moody’s Ratings.
“Currently, the banks in the UAE operate in a stable environment supported by diversification efforts and structural reforms which will continue to promote growth in the non-oil economy,” said Moody’s analysts.
GOLDEN JUBILEE CELEBRATION WITH SILVER COMMEMORATIVE COINS
In January, the Central Bank of the United Arab Emirates (CBUAE) has announced the issuance of silver coins to mark the bank’s golden jubilee. The CBUAE’s 50th anniversary silver coin embodies its achievements in developing the banking and financial sector over the past decades.
The CBUAE has issued 3,000 of these commemorative coins, each weighing 60 grammes. The obverse features the image of The President His Highness Sheikh Mohamed bin Zayed Al Nahyan surrounded by his name in Arabic and the phrase “President of the United Arab Emirates”. The coin’s reverse features an illustration of the CBUAE building, along with the phrase ‘50 Years of the Central Bank of the UAE’ on the upper and lower edges in Arabic and English, the years 1973-2023, and the nominal value of Dh50.
On May 6, the UAE announced plans to significantly increase the assets of Islamic banks in the federation and value of locally listed sukuk by 2031. Specifically, the government aims to increase the assets of Islamic banks to Dh256 trillion ($697 billion) from Dh986 billion ($268 billion), the total amount of listed local Islamic sukuk to more than Dh660 billion ($180 billion) and the total amount of international sukuk to Dh395 billion ($108 billion). In 2024, $12.7 billion of sukuk was issued in the UAE, of which the UAE banks issued $4 billion, according to Moody’s.
“The projected increase in Islamic banking assets will cement the UAE’s position as the third-largest contributor to the Islamic finance market,” it said.
Analysts and financial sector experts attribute the success of the UAE’s conventional and Islamic banks to central bank and said it is only possible due to solid foundation laid down by the CBUAE. Referring to latest data by Kamco Invest, they said the UAE-listed
banks have retained their supremacy in the Gulf region as they once again topped in GCC with the highest return on equity at the end of January-March 2025 quarter at 16.6 per cent.
“The UAE banks once again ranked first in the GCC in terms of Net Interest Margins (NIMs) that reached 3.34 per cent in first quarter of 2025 as compared to 3.39 per cent during the fourth quarter of 2024. The UAE-listed banks showed the biggest absolute growth in net profits with an increase of $639.6 million or 11.8 per cent during the quarter,” Kamco Invest, a financial consultancy, said in its first-quarter report.
Looking ahead, the central bank aims to continue its leadership role in shaping a robust financial ecosystem, leveraging digital innovation and Islamic finance to navigate the challenges of the global economy. As the bank celebrates its golden anniversary, the institution stands poised to embrace new opportunities, ensuring sustainable economic development for future generations.
CENTRAL BANK OF THE UAE MARKS 50 YEARS OF FINANCIAL STEWARDSHIP AND INNOVATION
UAE Banks Federation, representing 63 members, has been a crucial partner in translating Central Bank’s vision into practice
Suneeti Ahuja-Kohli
Central Bank of the UAE (CBUAE) is celebrating its 50th anniversary this year, while continuing to play a pivotal role in guiding the nation’s financial landscape and propelling it onto the global stage with increasing speed.
Since its establishment with the creation of the UAE Currency Board in 1973, Central Bank has emerged as a bedrock of stability and a catalyst for innovation, navigating the UAE through economic shifts and technological revolutions.
“Over the past five decades, CBUAE has not just overseen monetary policy, but has built the bedrock of confidence that has allowed the UAE to emerge as a regional and global financial centre,” says Jamal Saleh, Director-General of UAE Banks Federation (UBF).
“It has done this through decisive reforms and relentless focus on global best
practices.” In 2008, when the financial crisis rippled through economies worldwide, UAE Central Bank was among the first in the region to adopt Basel III Standards, strengthening capital and liquidity buffers. As a result, the capital adequacy ratio of the UAE banking system today is higher than required. At the end of December 2023, it stood at 17.9 per cent —well above the 13 per cent minimum required under Basel III guidelines, according to the CBUAE’s Monetary, Banking & Financial Markets Developments Report for Q4 2023. These reforms, says Saleh, “have ensured that UAE’s banks are not only safe but also capable of sustaining growth in the face of volatility.”
In 2018, UAE Central Bank introduced the Federal AML/CFT Law, followed by the Executive Office for AML/CTF in 2020, aligning UAE’s framework with the Financial Action Task Force’s stringent standards. This was a significant step in paving the way to combat money laundering and terror financing.
Equally striking has been CBUAE’s proactive stance in times of crisis. At the height of Covid-19 pandemic, CBUAE launched the Targeted Economic Support Scheme (TESS), injecting more than Dh100 billion in liquidity to support businesses and protect jobs.
“The TESS programme was not merely a reaction — it was a strategic intervention that underpinned confidence in the banking sector,” says Saleh.
Yet, CBUAE’s ambition extends well beyond stability. Its National Payment Systems Strategy (NPSS), Digital Dirham (CBDC) pilot project, and the Financial Infrastructure Transformation (FIT) Programme underscore a clear vision for a future-ready financial system.
“Our member banks are investing heavily in modernising their systems to align with these initiatives,” says Saleh.
“From AI-powered risk management to open banking APIs, the sector is embracing the future with vigour.”
UBF, which represents 63 members across the UAE, has been as a crucial partner in translating this vision into practice. Saleh describes the relationship between Central Bank and UBF as “a model for constructive collaboration,”
Over the past five decades, the CBUAE has not just overseen monetary policy—it has built the bedrock of confidence that has allowed the UAE to emerge as a regional and global financial centre.
Jamal Saleh, Director-General of UAE Banks Federation (UBF)
built on technical committees and joint working groups that ensure policy frameworks which are both practical and forward-looking. This close cooperation has yielded tangible outcomes. UBF has spearheaded efforts to promote Emiratisation in the banking sector, supporting CBUAE’s workforce emiratisation targets, via dedicated cooperation with Emirates Institute of Finance (EIF), with training programmes and certifications tailored for Emirati professionals. On the consumer front, UBF’s Code of Conduct — en-
dorsed by UAE Central Bank — has helped standardise ethical practices and transparency across the sector.
Sector’s sustainability drive has also gained momentum. At COP28, which was hosted in Dubai, UBF pledged to mobilise over Dh1 trillion in sustainable/ green finance by 2030.
“This is not an aspirational goal—it is a clear, actionable roadmap,” says Saleh, noting that some UBF member banks have already met more than half of their 2030 targets. RAKBANK’s issuance of the GCC’s first social bond last year and
UAE banks achieved a pre-tax return on average equity of 22 per cent in 2024, up from 20 per cent in 2023, with several banks reporting ROAEs above 25 per cent.
At the height of the Covid-19 pandemic, it launched the Targeted Economic Support Scheme, injecting more than Dh100 billion in liquidity to support businesses and protect jobs.
FAB’s continued leadership in green bond issuance highlight UAE sector’s growing appetite for ESG finance.
Even amid shifting geopolitical dynamics and heightened regulatory scrutiny, Saleh remains greatly optimistic about UAE’s positioning.
“Our capital adequacy ratios, liquidity coverage, and risk frameworks are among the strongest globally,” he says, pointing to the sector’s consistent performance despite global derisking trends.
According to Fitch Ratings, UAE banks achieved a pre-tax return on average equity (ROAE) of 22 per cent in 2024, up from 20 per cent in 2023, with several banks reporting ROAEs above 25 per cent.
Looking ahead, Saleh believes that the next decade will see the UAE cementing its role as a global financial hub, propelled by continued investment in digital transformation, sustainability, and inclusive growth.
“The partnership between CBUAE and UBF exemplifies how public-private collaboration can foster responsible innovation and ensure UAE’s place at the forefront of global finance,” he says.
As our Central Bank charts its next chapter, the UAE’s banking sector stands poised to bridge tradition with innovation, building a future-ready ecosystem that is as resilient as it is ambitious.
UAB CONGRATULATES THE CENTRAL BANK OF THE UAE ON ITS 50TH ANNIVERSARY
The central bank’s five-decade journey stands as a testament to progressive governance and an enduring pursuit of excellence
Shirish Bhide, Chief Executive Officer of United Arab Bank (UAB), extended his warmest congratulations to Sheikh Mansour bin Zayed Al Nahyan, Vice-President, Deputy Prime Minister, Chairman of the Presidential Court and Chairman of the Board of the Central Bank of the UAE (CBUAE) and to Khaled Mohamed Balama, Governor of CBUAE, on the momentous occasion of the central bank’s golden jubilee — celebrating five decades of impactful contributions to the country’s financial and economic development.
“The Central Bank of the UAE’s unwavering commitment to stability, innovation, and sustainable growth has been instrumental in positioning the UAE as a leading global financial hub. Its pioneering efforts in digital transformation, green finance, and regulatory excellence continue to align with the nation’s bold vision for a diversified, inclusive, and futureready economy.”
“I would like to extend my heartfelt congratulations and good wishes to the visionary leadership of the UAE on the 50th anniversary of CBUAE. The central bank’s five-decade journey stands as a testament to progressive governance and an enduring pursuit of excellence.”
At United Arab Bank, we are proud to operate under the robust regulatory framework set by the CBUAE.
Bhide reaffirmed United Arab Bank’s full support for the central bank’s strategic direction and emphasised the institution’s active role in contributing to national priorities. “At United Arab Bank, we are proud to operate under the robust regulatory framework set by the CBUAE. We remain deeply committed to supporting the national agenda — whether by enhancing financial inclusion, driving sustainable banking practices, or adopting innovative technologies that serve both our customers and the broader economy.”
“We are aligned with the Central Bank’s Financial Infrastructure Transformation Programme and its digital infrastructure strategy. As a UAE-headquartered bank, we
view our role as both a responsible partner in implementation and a catalyst for growth. We are also proud to support the country’s Emiratisation efforts by investing in the development of the next generation of Emirati leaders.”
“The central bank’s golden jubilee is a significant and inspiring milestone not only for the financial sector and banking industry, but for the nation as a whole. We celebrate this historic moment with gratitude for the central bank’s leadership and guidance, and with a renewed commitment to collaborate in advancing innovation, financial inclusion and long term prosperity. Here’s to honouring the past 50 years and building a brighter financial future together.”
QATAR INSURANCE COMPANY: A LEGACY OF EXCELLENCE AND INNOVATION
Today, QIC stands as the market leader in Qatar and a dominant insurer in the GCC and Mena regions
atar Insurance Company (QIC, QIC Group) is a publicly listed insurer with a consistent performance history spanning over 60 years and a global underwriting footprint.
Founded in 1964, QIC was the first domestic insurance company in the State of Qatar. Today, QIC stands as the market leader in Qatar and a dominant insurer in the GCC and Mena regions. As one of the largest insurance companies in the Mena region in terms of written premium and total assets, QIC is listed on the Qatar Stock Exchange with a market capitalisation exceeding QR7 billion.
In 1968, just four years after its inception, QIC expanded its operations to the UAE, establishing a branch fuelled by optimism and a long-term vision.
Our modest operations, initially based in Deira (Dubai) and Abu Dhabi, have grown steadily over the past 57 years. Today, QIC is a prominent insurer in the UAE, offering comprehensive risk solutions across Property, Casualty, Engineering, Marine, Motor, and Health Insurance segments.
Over the past six decades, we have built extensive knowledge and expertise to provide effective risk transfer solutions for our clients. We have faced and overcome numerous challenges, including the severe floods in the UAE in 2024, where we were
QIC: Six decades of trusted leadership, strategic growth, and unwavering commitment to excellence.
Salem Khalaf Al Mannai, Group CEO
at the forefront of delivering on our promises and proving our resilience.
In this interconnected world, QIC is guided by the vision set by our board of directors and led by Salem Khalaf Al Mannai. Under his dynamic leadership, QIC Group has achieved numerous milestones and received prestigious awards and recognitions.
QIC UAE operates under the vigilant oversight of the Central Bank of UAE, which celebrated its golden jubilee this year. The regulator is dedicated to ensuring the protection of the insuring public’s interests, and QIC is fully aligned with this philosophy.
We are proud to hold an A- (Excellent) credit rating from AM Best Europe and an A- rating from Standard & Poor’s. Recognising that risk is an inherent aspect of any significant endeavour, QIC is well-positioned to serve the public with innovative and competitive solutions.
Shirish Bhide, Chief Executive Officer, United Arab Bank
WHY MOTORISTS SHOULD OPT FOR FLOODGUARD
This exclusive product offers affordable, essential, and timely protection tailored for today’s unpredictable weather challenges
In recent years, extreme weather conditions have become increasingly common. Flash floods, storms, and tempests have caused significant damage to vehicles, often catching car owners off guard — especially those without comprehensive motor insurance. To bridge this critical protection gap, Al Fujairah National Insurance Company (AFNIC) has presented an innovative, standalone solution: Motor Flood & Storm Relief Insurance, branded as FloodGuard.
What is FloodGuard?
This exclusive product offers protection against accidental loss or damage to your car solely due to specific weather-related perils: Flood, Inundation, Storm, and Tempest (FIST). It is designed for vehicles not insured under comprehensive insurance, including those insured only under a Motor TPL Policy.
Who Can Avail FloodGuard?
Eligible vehicles include privately-owned or company-owned cars used strictly for private and pleasure purposes. Commercial vehicles, pickups, buses, motorcycles, and cars used for hire or reward are excluded.
KEY FEATURES AT A GLANCE
■ Standalone Protection: Independent of your existing TPL insurance, even if it’s with another insurer.
■ Annual Policy Term: Covers a full 12 months (not 13 months).
■ Loss Limit-Based Coverage: Claims are capped by a chosen Loss Limit, not the market value or sum insured. Currently available at Dh25,000 and Dh50,000 Loss Limits.
■ Reinstatement Option: Replenish the Loss Limit post-claim with additional premium.
■ Total Loss Payouts: Up to 90% of Depreciated Market Value (DMV) or Loss Limit — whichever is lesser.
■ Weather Data Authentication: Claim eligibility based on UAE’s National Centre of Meteorology reports.
■ Repair Coverage: Non-agency repairs only; agency repairs excluded.
■ Cash Loss Option: Choose to receive cash instead of repairing the vehicle.
SOME OF THE MAJOR EXCLUSIONS
TO NOTE:
No cover during the first 15 days (unless it’s a continuous renewal). Damage while desert driving, dune bashing, or traversing wadis, rivers, lakes, or beaches — even if dry. No replacement car, rent-a-car, or loss of use benefits. Gradual damage or pre-existing damage is not covered. Policy ends upon sale/transfer of vehicle or total loss claim.
Quick & Easy Purchase Options: Policies can be easily obtained by accessing AFNIC’s website or dedicated portal via QR Code or direct Link. The entire process can be completed in just a few steps — in less than five minutes.
Prefer a personal touch?
Visit any AFNIC branch Office or one of over 40 AFNIC outlets across the UAE for on-the-spot issuance.
Peace of Mind in Every Forecast: This pioneering product ensures your vehicle is not left vulnerable during unpredictable climatic events, giving peace of mind to vehicle owners across the UAE. For car owners not opting for a comprehensive plan, FloodGuard offers affordable, essential, and timely protection tailored for today’s unpredictable weather challenges.
FloodGuard can protect vehicles from flash floods, storms, and tempests — usually causing significant damage to vehicles and often catching car owners off guard.
MODERNISING FINANCIAL ECOSYSTEM
Digital Dirham represents a significant step towards promoting innovation and positioning the country as a leading player in global digital finance
Muzaffar Rizvi
The Digital Dirham represents a significant step towards modernising the UAE’s financial ecosystem, promoting innovation, and positioning the country as a leading player in global digital finance, experts say.
Top executives, experts, analysts and economists said the Digital Dirham will empower the Central Bank of the UAE (CBUAE) with greater monetary policy control and improved tracking of illicit activities, enhancing financial stability. They are of the view that the project aligns with the UAE’s Digital Economy Strategy, aiming to double the digital economy’s non-oil GDP contribution to 20 per cent by 2031.
“The Digital Dirham, the UAE’s Central Bank Digital Currency (CBDC), set for retail launch in fourth quarter of 2025, is poised to transform the UAE economy. Built on blockchain, it aims to enhance financial inclusion, streamline payments, and support a cashless society,” according to the experts. They said fintech innovation will thrive, fostering new financial products and services. The Digital Dirham positions the UAE as a global fintech leader, driving efficiency, inclusion, and economic diversification. Currently, all the major global currencies — US dollar, euro, yen, rupee, yuan and rouble — have their symbols, reflecting their countries’ strength and pride.
“The Central Bank of the UAE became the first central bank in the Arab region to introduce it. By reducing transaction costs and enabling real-time settlements, it will benefit retail consumers with faster, cheaper, and secure payments. For businesses, particularly in trade finance, it will simplify cross-border transactions, crucial given the UAE’s expatriate-heavy population and economy.”
A SIGNIFICANT MOVE
Governor of the CBUAE Khaled Mohamed Balama described the new currency symbol and announcement of the design of CBDC wallet as reflecting the significant advancements in the implementation of the Digital Dirham programme and a leap towards realising the central bank’s vision.
“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.”
Vijay Valecha, Chief Investment Officer, Century Financial, said the CBUAE is slated to launch its own Central Bank Digital Currency this year, called the Digital Dirham. This marks a significant leap towards financial innovation and digitisation.
“The digital currency is being developed in partnership with two prominent technology firms, namely, G42 Cloud and R3, and will likely be released in the fourth quarter of 2025,” Valecha told Khaleej Times
The CBUAE also developed a unique symbol for the UAE dirham in physical and digital forms in March 2025. Interestingly, the Digital Dirham is characterised by a large, encircled D with two horizontal lines passing through its center. These lines reflect the stability and resilience of the dirham. Inspiration was also drawn from the UAE flag, symbolising both financial and monetary stability.
Thus, it also features the colours of the UAE flag, reinforcing its national identity.
The Digital Dirham will support retail, wholesale, and cross-border payments while leveraging blockchain, smart contracts, and tokenisation to enhance efficiency and transparency. It is backed by a robust legal framework and will be distributed through licensed banks and fintech companies to ensure widespread adoption and accessibility.
“It will also facilitate cost-efficient transactions by reducing the intermediaries involved in cross-border payments and lower settlement times. Seamless integration with global CBDC systems and adequate defences against cybersecurity risks will drive its successful adoption.”
ADVANCED DIGITAL INFRASTRUCTURE
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 Programme.
“The new symbols reflect the UAE’s global currency aspirations, supported by
ACCELERATING DIGITAL CURRENCY PROJECT
Vijay Valecha, Chief Investment Officer, Century Financial, said the Digital Dirham is poised to significantly enhance the UAE’s digital currency efforts, as indicated by the CBUAE.
“In line with the broader Financial Infrastructure Transformation (FIT) programme initiated in 2023, the CBUAE is gradually launching the Digital Dirham. This digital currency, recognised as a universal payment method under Federal Decree-Law No. (54) of 2023 will be usable across all payment platforms and channels in conjunction with physical currency,” he said.
The Digital Dirham presents significant benefits and features promoting development and innovation, such as:
■ Tokenisation: The Digital Dirham facilitates the process of tokenisation, thereby enhancing financial inclusion and efficiency while simultaneously expanding access to liquidity through digital assets fractionalisation.
■ Smart contracts: The Digital Dirham utilises smart contracts to automate the execution of complex transactions, ensuring instant settlement. This includes handling multi-stage and multi-party transactions that require specific conditions or obligations.
The key objectives of the Digital Dirham are:
■ Enhancing domestic, cross-border payments: The Digital Dirham aims to strengthen domestic and cross-border payment systems’ efficiency, security, and cost-effectiveness. Digital dirham is also a part of international collaborations like Project mBridge, which explores the use of CBDCs for efficient and secure cross-border payments.
■ Supporting the digital economy: This initiative aligns with the UAE’s extensive digital transformation strategy, which seeks to foster a strong digital economy by integrating innovative financial technologies.
■ Promoting financial inclusion: It seeks to offer accessible financial services to unbanked and underbanked communities, promoting increased economic involvement across all social segments.
its strong economic position with record trade levels of $800 billion,” 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.
Economist Dr Abdul Rahim Al Farhan said UAE has become one of the most advanced countries in digital in the Middle East in general and the Gulf countries in particular. “The UAE is currently on its way to becoming a global centre for digital and
“The CBUAE has also created the Digital Dirham wallet, which is a safe and complete system for businesses and individuals to issue, manage, and use the digital currency. This would allow for more secure and private transactions, which builds trust and reduces the risk of fraud or misuse.”
Vijay Valecha, Chief Investment Officer, Century Financial
try’s broader Financial Infrastructure Transformation Programme, which aims to speed up digital innovation in financial services.
For the wider UAE economy, he said the digital dirham could support the shift toward a cashless society. By promoting digital payments, it would reduce the need for physical cash, making transactions faster and more efficient.
“The CBUAE has also created the Digital Dirham wallet, which is a safe and complete system for businesses and individuals to issue, manage, and use the digital currency. This would allow for more secure and private transactions, which builds trust and reduces the risk of fraud or misuse,” he said.
In addition, the cost of payments and money transfers will also go down because digital currency can work without as many intermediaries, such as banks or money transfer companies. The digital dirham also supports the development of new financial products and services, encouraging innovation and entrepreneurship in the UAE’s growing digital economy.
blockchain, thanks to its flexible regulatory policies, advanced digital infrastructure, and the huge investments of global companies, which make it a major destination for in cryptocurrencies,” Al Farhan said.
DIGITAL DIRHAM TO BENEFIT ECONOMY
Valeecha said the launch of the digital dirham in the UAE brings several important benefits to both the general economy and the financial sector. It is part of the coun-
For the financial sector, the digital dirham can be used with smart contracts to automatically execute complex deals or conditions including multi-party or multi-step agreements. Moreover, the digital dirham supports cross-border payments, which can improve international trade and capital flows into the country. It also allows for tokenisation and fractional ownership of assets, which would increase access to liquidity and participation in the financial system.
“Overall, the digital dirham may help make the UAE’s financial system safer and more streamlined. It is also expected to support new types of businesses and make it easier to connect with international markets, while lowering costs and giving more people and companies access to financial services,” Valeecha said. — muzaffarrizvi@khaleejtimes.com
