04-30-2025 
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A raft of Abu Dhabi-based entities is proceeding with the launch of a dirham-backed stablecoin to revolutionize the payment landscape in the United Arab Emirates (UAE).
Abu Dhabi’s International Holding Company (IHC), First Abu Dhabi Bank, and ADQ are teaming up for the stablecoin launch. While details remain under wraps, the report notes that the incoming stablecoin will operate on the ADI distributed ledger.
With the technical part of the launch settled, the coalition is tapping First Abu Dhabi Bank as the stablecoin issuer. IHC is expected to leverage its expertise in blockchain and financial services, while the sovereign wealth fund ADQ will provide the financial muscle and regulatory influence.
The proposed stablecoin launch will require regulatory approval from authorities, but pundits say the coalition will scale through the regulatory process. The issuance has the backing of the United Arab Emirates’ largest bank and its sovereign wealth fund, which are key factors that will sway approval.
Secondly, the proposed stablecoin adheres to full regulatory compliance processes, with the disclosure noting that the offering operates under the central bank’s supervision.
Regarding use cases, it targets broad applications for consumers across the UAE. Apart from consumers, the dirham-backed stablecoin launch will support enterprise and institutional use in the UAE as part of the country’s digitization drive.
The joint statement notes that the incoming stablecoin will also support emerging technologies in the UAE, with budding use cases in artificial intelligence (AI) and blockchain.
“The launch of the stablecoin marks a pivotal step in our commitment to strengthening the UAE’s digital infrastructure ecosystem,” said ADQ Managing Director Mohamed Alsuwaidi.
Last year, the UAE signaled an intention to embrace stablecoins as part of its transformation objectives. As part of its efforts, the UAE approved the launch of dirham-backed stablecoins under strict guardrails for consumers.
“As we move forward towards an increasingly digital and connected economy, the stablecoin will provide a solution that is secure, efficient, and scalable, while creating new opportunities for growth and value creation,” added Alsuwaidi.
Stablecoins are at the heart of the UAE’s digital transformation
The UAE is adopting a friendly stance toward stablecoins, approving dirham-backed offerings while warming up to U.S. dollar-denominated solutions. In a strong show of intent, Dubai’s financial regulator approved Circle’s USDC and EURC stablecoins while hinting at further approvals in the near future.
Outside of stablecoins, the UAE is still exploring the viability of a central bank digital currency (CBDC). Despite the dual nature of its payment transformation plans, the UAE’s regulators are keen to reap the upsides of both stablecoins and CBDCs.
MoHRE unveils digital wallet for enterprise use cases in the UAE
The United Arab Emirates (UAE) Ministry of Human Resources and Emiratisation (MoHRE) has announced the launch of a digital wallet designed to provide a swathe of financial services for enterprises.
According to a report, the MoHRE is partnering with the Abu Dhabi Islamic Bank (ADIB) to roll out the digital wallet. The digital wallet will feature a range of features for MoHRE’s corporate clients while improving its operational efficiency.Corporate customers can use the new digital wallet to pay for services the labor market watchdog offers. The digital wallet will facilitate faster transactions for corporate entities while reducing paperwork and improving transparency perks.
It remains unclear if the digital wallet will lean on a dirham-backed stablecoin or the incoming CBDC for its transactions.
On the side of the labor market watchdog, the new digital wallet will provide improved monitoring for compliance purposes. Furthermore, access to immutable data will be key in MoHRE policy-making while aligning the agency with the broader digital transformation objectives of the UAE.
MoHRE Assistant Undersecretary for Support Services Mohammed Saqr Al Nuaimi urged corporations to submit their applications for the wallet via an intuitive registration service. The report hints at a bank verification before the digital wallet becomes operational to adhere to anti-money laundering (AML) rules and other financial sector regulations.
Al Nuaimi notes that the digital wallet rollout is the first phase in MoHRE’s ambitious digitization plan. Over the coming months, the undersecretary notes that the digital wallet will be expanded to include multiple banking options, with the prospect of cross-border payment functionality on the cards for enterprises.
The MoHRE has been tinkering with digital transformation ideas with its Zero Bureaucracy Program. Using emerging technologies like artificial intelligence (AI), MoHRE is working toward reducing processing times and unnecessary government procedures.
UAE positions itself for digitization
While government agencies are embracing digitization, the UAE is creating a conducive environment for early adopters. Approving the launch of dirham-backed stablecoins is considered a step in the right direction, comparable to the gains achieved by CBDC experiments.
Outside of payments, a hefty investment in AI and blockchain use cases is fuelling the UAE’s digitization drive. The UAE is now the regional leader in digital asset adoption, recording impressive growth over the last 24 months.
Watch | Middle East governments trying to find good use cases for blockchain: Ahmed Yousif
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