Time for a date: Saudi treat ripe for delivering economic nourishment

Time for a date: Saudi treat ripe for delivering economic nourishment
According to Market Research Future, the date market is projected to grow from $120 million in 2023 to $220 million by 2032. (Supplied)
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Updated 23 February 2025
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Time for a date: Saudi treat ripe for delivering economic nourishment

Time for a date: Saudi treat ripe for delivering economic nourishment

RIYADH: The inclusion of a date palm edged by crossed swords in the Saudi emblem reflects the deep-rooted cultural and economic value attached to the fruit in the Kingdom.

Symbolizing the essence of Arabian hospitality and holding a fundamental role in the daily life of people in the Kingdom, it is little surprise that over the past few years Saudi Arabia has worked on international and local initiatives that have contributed to raising the market value of dates.

This has led to the establishment of the National Center for Palms and Dates and the International Dates Council, with the membership consisting of 11 producing countries.

There are more than 33 million palm trees in Saudi Arabia — representing 27 percent of the total number in the world — while the number of palm agricultural holdings in the Kingdom has reached 123,000.

According to Market Research Future, the date market is projected to grow from $120 million in 2023 to $220 million by 2032, reflecting a compound annual growth rate of 5.22 percent.

Global and local initiatives’ contribution to elevating the dates market value

Saudi Arabia is actively promoting its dates as a top-tier product in global markets through various channels.

Engagements in worldwide food expos like Gulfood and SIAL, alongside targeted campaigns, have boosted recognition and interest in the fruit.

By emphasizing the country’s rich cultural and historical ties to dates, these branding initiatives are amplifying the attractiveness of Saudi dates to a broader audience.

According to Ibrahim El-Basyoni, a plant breeding and genetics research scientist at King Abdullah University of Science and Technology, the Kingdom is bringing together date-producing and consuming nations to promote the global industry.

“It has facilitated knowledge exchange, trade partnerships, and coordinated efforts to position dates as a staple food worldwide,” El-Basyoni told Arab News.




Ibrahim S. El-Basyoni, plant breeding and genetics research scientist at King Abdullah University of Science and Technology. (Supplied)

“It also advocates for increased global consumption of dates by highlighting their nutritional benefits,” he added.

Saudi Arabia is also advancing date cultivation through research, development, and farmer training programs.

El-Basyoni shed light on how the country advocates the adoption of modern agricultural techniques and sustainable practices to significantly enhance the production and quality of dates.

“Through collaborations with Saudi entities, KAUST is working to preserve Saudi Arabia’s historic date palm cultivars by creating an electronic date palm atlas. Additionally, the collaboration aims to boost production by introducing improved cultivars and implementing advanced agricultural practices and technologies, such as regenerative and smart agriculture,” he said.

Zooming into specific regions in the Kingdom, dates are the strongest agricultural asset in AlUla due to their economic value and dominance.

In fact, the Royal Commission for AlUla’s strategy includes a dedicated pillar for dates, with a vision to elevate the international profile of dates from the region, particularly the AlUla Barni variety.

Abdullah Al-Hameid, director of the agriculture center at RCU, explained that this is primarily supported by enabling initiatives focused on adopting efficient and resource-sustainable production practices.

There is also a drive to achieve research and innovation excellence in Barni production, establish AlUla dates as a benchmark of quality internationally, and expand date processing capabilities and diversify value-added product portfolios.

“These align with Saudi Arabia’s vision to sustainably develop agriculture. The RCU Agriculture Strategy is fully synchronized with the national agenda and sectoral strategies, ensuring RCU contributes to these goals,” Al-Hameid said.




Abdullah Alhameid, director of the Agriculture Center, Royal Commission for AlUla. (Supplied)

“RCU has established a partnership with the National Center for Palms and Dates, which has proven successful over the past five years. This includes NCPD’s involvement in organizing the AlUla Dates Festival and the development of export guidelines for AlUla Mabroom dates,” he added.

The dates auction in AlUla marked the initial stage of NCPD’s Seasonal Dates Market, designed to lay the foundation for trading in Saudi Arabia, positioning AlUla as a benchmark for other regions in the country.

Enhanced marketing strategies, both domestically and globally, have elevated the worth of AlUla dates.

“Marketing improvements, locally and internationally, have boosted the value of AlUla dates. The 2024 Dates Auction demonstrated remarkable progress, with over 800 participants — a 45 percent increase in farmer participation,” Al-Hameid said.

The scientist added: “The auction recorded sales of 1.7 million kilograms of dates, generating SR8.8 million ($2.34 million). Additionally, 2.3 million kilograms were sold outside auction, adding SR12 million.”

He went on to explain how over the years, the average price per kilogram rose from SR6.7 in the first 2021 auction to SR10.3 in 2023, with Mabroom dates fetching SR 50 per kilogram.

“To celebrate the diversity of AlUla’s agriculture, the Dates Festival has been integrated into AlUla’s Fresh Produce Season. This includes the Summer Fruits Season, Dates Season, Peregrina Season, and Citrus Season,” Al-Hameid said.

“AlUla Fresh Produce Season showcases AlUla’s agricultural products and raises global awareness of an internationally recognized brand for AlUla products, enhancing their appeal and entry into new markets,” he added.

Al-Hameid cited RCU’s recent sponsoring of a pioneering export trial to facilitate the entry of AlUla Mabroom dates into Germany as an example of trying to expand sales across Europe.

How Saudi Arabia is leveraging the country’s global palm tree population to lead industry

Saudi Arabia’s role as home to a significant portion of the global palm tree population offers a strong foundation for the Kingdom to lead the industry.

With this comes a responsibility to pioneer environmentally friendly date farming practices, meaning the Kingdom is prioritizing enhancing resource efficiency — particularly in water usage — and implementing advanced agricultural practices to maximize production and ensure sustainability.

From KAUST’s point of view, a key initiative is the introduction of the Saudi Dates Mark, a quality certification that guarantees compliance with international food safety and quality standards.

“This certification will enhance the global reputation of Saudi dates as a premium product. Additionally, efforts to promote iconic varieties such as Ajwa, Majdool, Sukkary, and Khalas have further boosted their appeal in competitive international markets,” El-Basyoni said on KAUST’s behalf.

Saudi Arabia’s export strategy emphasizes meeting global market preferences by offering organic and value-added date products, including date syrup, date paste, and date-based snacks.

“Collaborative efforts with KAUST are driving innovation in the industry by improving productivity, combating pests, and ensuring the long-term sustainability of palm cultivation,” El-Basyoni said.

The Kingdom also actively participates in international forums and exhibitions to position Saudi dates as a key player in the global food market.

Beyond traditional offerings, Saudi Arabia is expanding into value-added products, such as energy bars, health supplements, and premium gift packaging.

“These innovations cater to a diverse range of consumers, including health-conscious individuals and luxury markets. Advanced packaging and processing technologies have further extended the shelf life of dates and improved convenience, aligning with the evolving demands of international consumers,” the KAUST representative highlighted.

Potential growth opportunities that Saudi Arabia envisions for its date industry

Saudi Arabia envisions substantial growth opportunities for its date industry, both domestically and internationally, as it seeks to position itself as a global leader in production and trade of the fruit.

These initiatives and research goals are strongly aligned with Saudi Vision 2030, which focuses on economic diversification and increasing non-oil exports.

From KAUST’s point of view, by prioritizing the date industry, these efforts leverage Saudi Arabia’s natural resources and cultural heritage to support the vision’s objectives.

“The growth prospects for the date industry, spanning value-added product innovations, international market expansion, sustainability, and cultural preservation will underscore its vital role in the Kingdom’s economic transformation,” El-Basyoni said.

Meanwhile, RCU is committed to enhancing recognition of AlUla dates through best-in-class practices, leveraging research and development, improving market access, and building superior processing capabilities.

According to Al-Hameid, when it comes to adopting efficient and resource-sustainable production practices, RCU is spearheading the AlUla Irrigation Transformation Project to introduce advanced water-saving techniques, phasing out flood and surface irrigation.

The entity is also developing Good Agricultural Practices and organic production standards, he said, adding: “In 2024, the RCU Agriculture Center held over 95 training sessions for more than 1,500 date farmers in 18 villages on best agriculture practices.”

The director explained that this contributed to achieving an extra 250 Saudi Date Mark, ensuring compliance with the NCPD standards.

“We aim for 70 percent of AlUla dates to be accredited and certified by 2035,” Al-Hameid said.

“The Integrated Pest Management program ensures the health and economic viability of date farms. In 2024, approximately 2 million date palm trees have been surveyed and managed as per international pest control standards to ensure compliance with demand for high-quality dates that match food safety requirements,” he added.

Another key area is achieving research and innovation excellence in Barni production, while expanding processing capabilities and diversifying product portfolio are also in focus.

“RCU is developing two advanced processing facilities (Farmers Hubs) for AlUla dates, focusing on enhancing the value of by-products and creating new value-added products for lower-quality dates to maximize value,” he concluded.


Saudi Crown Prince issues directives to curb rising land prices and rents in Riyadh

Saudi Crown Prince issues directives to curb rising land prices and rents in Riyadh
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Saudi Crown Prince issues directives to curb rising land prices and rents in Riyadh

Saudi Crown Prince issues directives to curb rising land prices and rents in Riyadh
  • Decision followed study carried out by Royal Commission for Riyadh City and Council of Economic and Development Affairs

RIYADH: In response to the rising land prices and rental costs in Riyadh, Crown Prince Mohammed bin Salman on Saturday directed a series of measures aimed at achieving stability in the real estate sector, the Saudi Press Agency reported.

The decision followed a study carried out by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, which assessed the challenges facing the market in the Saudi capital.

The Crown Prince’s directives mark a significant step toward addressing Riyadh’s housing affordability challenges, while aiming to create a more balanced and sustainable real estate market for the city’s growing population, SPA added.

A key aspect of the directive will be the lifting of restrictions on land transactions and development in northern Riyadh.

The move will allow for the sale, purchase, division, and subdivision of land in designated areas, as well as the issuance of building permits, SPA reported.

The areas affected include a 17-square-kilometer section north of Riyadh, bordered by King Khalid Road to the west and Prince Saud bin Abdullah bin Jalawi Road to the south, as well as a 16.2-square-kilometer area north of King Salman Road, extending to Abu Bakr Al-Siddiq Road and Al-Qayrawan District.

These additions, combined with previously lifted suspensions covering 48.28 square kilometers, bring the total area now available for development in Riyadh to 81.48 square kilometers.

To increase housing accessibility, the RCRC has been tasked with providing planned and developed residential lands for citizens.

Between 10,000 and 40,000 plots will be made available annually over the next five years, at a capped price of 1,500 riyals per square meter. These plots will be offered to married citizens or individuals over the age of 25, provided they do not own any existing real estate.

Strict regulations will govern the issuance of this land, preventing resale, rental, or mortgage for 10 years, except when used to finance construction. If the land remains undeveloped within this period, ownership will revert to the government, with the buyer reimbursed.

To further stimulate real estate supply, amendments to the white land fees system — a policy designed to encourage the development of vacant land — will be introduced within 60 days.

Additionally, regulatory measures will be implemented within 90 days to ensure a fair balance between landlords and tenants.

Finally, the General Authority for Real Estate and RCRC have been assigned the task of monitoring and controlling property prices in Riyadh.

They will submit periodic reports to assess the effectiveness of these measures and ensure that the real estate market remains stable and accessible.


M&A deals in Saudi Arabia rise in sign of foreign investor confidence: Marsh

M&A deals in Saudi Arabia rise in sign of foreign investor confidence: Marsh
Updated 28 March 2025
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M&A deals in Saudi Arabia rise in sign of foreign investor confidence: Marsh

M&A deals in Saudi Arabia rise in sign of foreign investor confidence: Marsh

RIYADH: Mergers and acquisitions in Saudi Arabia recorded a 55 percent annual rise in 2024 as deal value hit $9.6 billion, fueled by foreign investors and key sector activity.

According to Marsh’s Transactional Risk Insurance report, 59 M&A transactions closed in the Kingdom, with 25 percent of deal activity concentrated in the industrial sector, 20 percent in technology, and 14 percent in consumer and retail — all areas aligned with the country’s Vision 2030 economic transformation strategy.

This helped to fuel an increase in transactional risk insurance across the Gulf Cooperation Council region, with demand climbing 78 percent, the analysis showed.

The robust M&A industry throughout the Middle East and North Africa in 2024 was in contrast to trends in other regions, with a report released by GlobalData in December showing such transactions — as well as those involving private equity and venture financing — recording an annual fall of  8.7 percent during the first 11 months of the year.

In an interview with Arab News, Luke Sutton, head of transactional risk for the Middle East and Africa at Marsh, said: “Foreign investors accounted for 32 percent of Saudi Arabia’s $9.6 billion in M&A activity, including several deals involving consortiums of local and international buyers.”

He added: “The most active non-Saudi acquirers were from the US, UAE, and UK, with 25 percent of inbound investment concentrated in tech, 15 percent business services, 15 percent industrials, 10 percent energy and natural resources, and 10 percent transportation.”

Across the wider GCC, inbound investment accounted for 25 percent of all insured M&A transactions, reflecting a growing presence of foreign buyers in regional dealmaking.

“Saudi Arabia is a market with very significant and well-hedged M&A potential; and government-sponsored capital expenditure is expected to bring opportunities to market as the country focuses on diversification,” Sutton said.

He also highlighted the effect of recent regulatory changes, noting that efforts to boost foreign direct investment have opened up Saudi Arabia to global buyers.

“Warranty and indemnity is a staple feature of M&A transactions in the US, Europe, and Asia. So it is natural that those buyers have imported this trend into the Saudi market,” he said.

CaptionLuke Sutton, head of transactional risk for the Middle East and Africa at Marsh. Supplied

According to the expert, the Saudi Insurance Authority’s approval of W&I insurance for the Kingdom’s incorporated buyers is also expected to significantly increase domestic adoption.

Sutton said that transactional risk insurance not only reduces risk, but also plays a key role in expediting deal execution. By covering potential post-sale liabilities, W&I insurance allows parties to avoid lengthy negotiations over indemnities.

When asked if insurance helps speed up closure, he replied: “Yes — very significantly. Buyers and sellers — and their legal advisers — can focus on other facets of the transaction, knowing that the insurance market can back-stop seller representations and indemnities.”

According to Sutton, as Saudi Arabia pursues diversification, warranty and indemnity insurance is increasingly used to manage deal risks — giving buyers protection from hidden issues and sellers a clean, liability-free exit.

As part of Vision 2030, Saudi Arabia has made attracting foreign investment a national priority.

Reforms such as 100 percent foreign ownership in select sectors, streamlined licensing procedures, and a new law that places local and foreign companies under a unified regulatory framework are aimed at boosting the Kingdom’s global competitiveness and reducing its dependence on oil revenue.

The launch of special economic zones, privatization of state assets, and incentives for international companies to establish regional headquarters in Riyadh have all contributed to rising foreign direct investment flows.

Saudi Arabia is targeting an increase in annual FDI from $26 billion in 2023 to $100 billion by 2030. This openness has coincided with the region’s rise as a global investment hub, largely driven by sovereign wealth funds.

The Public Investment Fund, alongside other major Gulf sovereign wealth funds, is no longer just a passive investor, but a key player in cross-border M&A, frequently taking controlling stakes and co-leading big-ticket international transactions.

M&A insurance activity in the GCC

Marsh reported that it had placed more than $550 million in insurance capacity for insured transactions in Saudi Arabia and the UAE, representing a total deal value of $2.25 billion, with a median deal size of $450 million.

SWFs were instrumental in driving deal activity, according to the firm, with 2024 marking the highest level of global deal making by these organizations in more than a decade.

While insured deals still leaned toward the domestic, Marsh noted a growing shift. The investment mix is evolving toward a 50/50 split between domestic and inbound capital, fueled by international partnerships and increased foreign participation in strategic sectors.

The rising presence of private equity funds has also influenced the demand for risk insurance. Their focus on clean exits and post-deal protection has made W&I insurance an increasingly standard part of deal structuring.

“While historically many deals were completed without insurance due to limited insurer appetite and perceived high costs; in the last two years, there has been a significant increase in requests for quotes on deals within GCC,” said Nirav Modi, private equity and mergers and acquisition services practice leader at Marsh.

Regionally, while the total number of M&A deals in the Middle East and Africa fell 13 percent in 2024, deal value jumped 42 percent to $33 billion, as investors prioritized larger, more strategic transactions, according to the report.

Saudi Arabia played a major role in this growth, particularly through infrastructure and public-private partnership initiatives under Vision 2030.

These trends have been matched by a notable evolution in the region’s insurance landscape, as market capacity and competition have grown in response.

According to the report, the number of insurers underwriting deals rose from five in 2021 to nearly 15 in 2024, resulting in broader coverage options and a sharp decline in premiums. Marsh reported a mean premium rate of just over 1.3 percent, down more than 60 percent from three years ago.

Strategic sponsors, including SWF-backed corporates, made up 66 percent of insured buyers, highlighting the role of institutional investors in driving deal flow and relying on insurance to manage complex transactional risks.

As global M&A rebounds in 2025, Saudi Arabia is expected to remain a top destination for international capital, particularly in clean energy, logistics, digital infrastructure, and advanced manufacturing.

With continued regulatory support and a strong push for diversification, M&A insurance is poised to play a pivotal role in facilitating secure, high-value transactions across the Kingdom.


Aramco CEO among business leaders urged by China’s Xi to protect trade as Trump tariffs loom

Aramco CEO among business leaders urged by China’s Xi to protect trade as Trump tariffs loom
Updated 28 March 2025
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Aramco CEO among business leaders urged by China’s Xi to protect trade as Trump tariffs loom

Aramco CEO among business leaders urged by China’s Xi to protect trade as Trump tariffs loom
  • China's Xi met with foreign CEOs in Beijing
  • Around 40 executives joined the meeting

BEIJING: China’s President Xi Jinping urged a gathering of multinational CEOs on Friday to protect global industry and supply chains, as Beijing seeks to assuage foreign firms’ concerns over the Chinese economy’s health amid threats of more US tariffs.

Beijing is battling to dispel fears that a renewed trade war with US President Donald Trump will further pinch growth in the world’s second-largest economy, which has been struggling to recover since the pandemic.

Longstanding unease over China’s tightening regulations, abrupt crackdowns on foreign firms, and an uneven playing field favoring state-owned Chinese companies are also sapping business sentiment.

“We need to work together to maintain the stability of global industry and supply chains, which is an important guarantee for the healthy development of the world economy,” Xi told the business leaders, who included the bosses of AstraZeneca, FedEx, Saudi Aramco, Standard Chartered and Toyota.

Around 40 executives joined the meeting, the majority of whom represented the pharmaceuticals sector. The meeting ran for just over 90 minutes and seven companies were invited to speak, a source with direct knowledge of its planning said.

“The CEOs I spoke with, and I spoke with a lot of them, felt it was worth it,” said Sean Stein, president of the US-China Business Council and one of the meeting’s attendees. “Not only did the president acknowledge various challenges facing companies and industry, in many cases he pledged the government would take action.”

The executives sat in a horseshoe formation, with Mercedes-Benz CEO Ola Kallenius and FedEx’s Raj Subramaniam sitting directly across from Xi.

HSBC CEO Georges Elhedery, SK Hynix boss Kwak Noh-jung, Saudi Aramco president and CEO Amin Nasser, and chair of Hitachi Toshiaki Higashihara also sat in the first row.

“This meeting is a big illustration of business diplomacy. Now there is not just dialogue between bodies, WTO entities and states, but diplomacy being led by companies that are not just representing themselves, but also their sectors,” said Frank Bournois, VP and dean of the China Europe International Business School in Shanghai, adding that its success would depend on future actions and not just words.

The frequency of meetings between foreign executives and high-level Chinese officials has picked up over the past month, after official data showed foreign direct investment plummeted 27.1 percent year-on-year in local currency terms in 2024.

That marked the biggest drop in FDI since the 2008 global financial crisis.

“Foreign enterprises contribute one-third of China’s imports and exports, one-quarter of industrial added value and one-seventh of tax revenue, creating more than 30 million jobs,” Xi said.

“In recent years, foreign investment in China has also been interfered with by geopolitical factors ... I often say that blowing out other people’s lights does not make you brighter.”

Trump has renewed his trade war with China since taking office and has announced a wave of fresh “reciprocal” tariffs to take effect on April 2, targeting countries with trade barriers on US products, which could include China.

He imposed 20 percent tariffs on Chinese exports this month, prompting China to retaliate with additional duties on American agricultural products.

“The essence of China-US economic and trade relations is mutually beneficial and win-win,” Xi told the meeting.

The Chinese leader last year singled out American business leaders for an audience after the China Development Forum, but USCBC’s Stein said such meetings were unlikely to become a routine fixture at the annual business summit, which this year ran from March 23-24.

“China’s messaging is that it isn’t an annual event and that businesses shouldn’t expect it to be.” 


Oil Updates — crude set to rise for 3rd week on Venezuela, Iran pressure

Oil Updates — crude set to rise for 3rd week on Venezuela, Iran pressure
Updated 28 March 2025
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Oil Updates — crude set to rise for 3rd week on Venezuela, Iran pressure

Oil Updates — crude set to rise for 3rd week on Venezuela, Iran pressure

LONDON: Oil prices were set for a third weekly gain on Friday as the US ramped up pressure on Venezuela and Iran, though worries over whether Washington’s tariff war could curb demand weighed on markets.

Brent crude futures were up 8 cents, 0.1 percent, at $74.11 a barrel at 12:49 p.m. Saudi time, marking the eighth straight days of gains, its longest such streak since May 2022.

US West Texas Intermediate crude futures were up 5 cents, also 0.1 percent, to $69.97 a barrel.

Both contracts have gained about 2.5 percent so far this week. They are up around 7 percent since hitting multi-month lows in early March.

The main driver of the price rally has been the shifting landscape of global oil sanctions, BMI analysts wrote in a market commentary.

US President Donald Trump on Monday announced new 25 percent tariffs on potential buyers of Venezuelan crude, days after US sanctions targeting China’s imports from Iran.

The order compounded uncertainty for buyers and saw trade of Venezuelan oil to top buyer China stall. Elsewhere, sources said India’s Reliance Industries, operator of the world’s biggest refining complex, will halt Venezuelan oil imports.

“The potential loss of Venezuelan crude exports to the market due to secondary tariffs and the possibility of the same being imposed on Iranian barrels has caused an apparent tightness in crude supply,” said June Goh, a senior oil analyst at Sparta Commodities.

Oil was also underpinned by signs of better demand in the United States, the world’s top oil consumer, as the country’s crude stocks fell more than anticipated.

Data from the Energy Information Administration showed US crude inventories fell by 3.3 million barrels to 433.6 million barrels in the week ended March 21, compared with analysts’ expectations in a Reuters poll for a 956,000-barrel draw.

Some downward pressure came as oil mirrored broader risk asset sell-offs on Friday, as the latest tariff salvo from Trump stoked investor worries of an all-out trade war.

As a result, analysts don’t expect sharp gains in oil prices to be sustained in the current environment.

“While the market is suffering under extreme uncertainties, we are holding to our forecast for Brent crude to average $76 per barrel in 2025, down from $80 per barrel in 2024,” the BMI analysts wrote. 


UAE unveils new dirham symbol and digital currency

UAE unveils new dirham symbol and digital currency
Updated 27 March 2025
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UAE unveils new dirham symbol and digital currency

UAE unveils new dirham symbol and digital currency

RIYADH: The Central Bank of the UAE on Thursday introduced a new symbol for the nation’s currency, both in its physical and digital forms, marking a significant step in reinforcing the UAE’s status as a leading global financial center.

According to the Emirates News Agency or WAM, the newly unveiled dirham symbol draws inspiration from the English letter “D” and features two horizontal lines that represent financial stability. The design is also a nod to the UAE flag, symbolizing national pride and resilience.

This symbol will serve as a global representation of the dirham, promoting the UAE’s currency across international markets.

The launch of the symbol coincides with the UAE’s adoption of the FX Global Code, which positions the CBUAE as the first central bank in the Arab region to join this important framework.

The FX Global Code is renowned for promoting best practices and ethical standards within the foreign exchange market, and this step further enhances the UAE’s commitment to integrity and transparency in financial dealings.

Alongside the physical dirham symbol, the CBUAE is advancing the issuance and circulation of the digital dirham, a core initiative of the Financial Infrastructure Transformation Program launched in 2023.

The digital dirham will feature a circular design, incorporating the UAE flag’s colors, which reinforces the nation’s sense of pride and modernity in the evolving financial landscape.

Khaled Mohamed Balama, governor of the CBUAE, expressed his enthusiasm for these transformative steps: “We are proud to unveil today the new symbol for the UAE’s national currency and the design of the digital dirham wallet,” he stated.

“The digital dirham, built on blockchain technology, is expected to enhance financial stability, improve inclusion, increase resilience, and help combat financial crime.”

He further emphasized that the digital dirham is set to drive innovation in the financial sector by enabling the creation of new digital products and services, while lowering costs and expanding access to international markets.

The digital dirham will be made available through licensed financial institutions, including banks, exchange houses, fintech firms, and other financial services providers. It will be legally recognized as a universal payment method, alongside physical currency, creating a seamless experience for both digital and traditional transactions.

Key features of the digital dirham include:

Tokenization: This innovative process will enhance financial inclusion by allowing fractionalized access to digital assets, thereby improving liquidity.

Smart contracts: The digital dirham will facilitate the use of smart contracts, automating the execution of complex transactions, including multi-party agreements and conditional obligations, with instant settlement.

To support the digital currency, the CBUAE has developed a robust and secure platform for its issuance and circulation. This platform includes a user-friendly digital dirham wallet, designed to handle a wide range of financial transactions, including retail and wholesale payments, cross-border transfers, withdrawals, and top-ups. It also ensures ease of access and a convenient user experience, adhering to industry best practices.

As the UAE continues to lead in the digital economy, the digital dirham platform is designed to adapt to emerging financial needs, facilitating innovative solutions and reinforcing the country’s position as a global leader in digital payments.