The United Arab Emirates is set to introduce a new dirham-backed stablecoin designed to simplify digital payment processes and strengthen their security. First Abu Dhabi Bank (FAB) will issue the stablecoin — announced jointly by IHC, ADQ, and FAB — under full regulation from the Central Bank of the UAE (CBUAE), subject to final approval.
What the UAE Dirham-Backed Stablecoin Does
The dirham-backed stablecoin is intended as an everyday transaction solution for citizens, consumers, businesses, and institutions across the UAE. It will also strengthen the adoption of AI technology and machine-to-machine payments alongside other digital solutions. The launch positions the UAE as a leading global fintech hub and upgrades the country's broader digital payment infrastructure.
ADI Blockchain: The Technology Behind It
The stablecoin will run on the ADI blockchain, developed by Abu Dhabi-based ADI Foundation. The platform bridges the traditional financial sector with modern digital environments, creating pathways for emerging economies to access global economic opportunities. ADI Foundation already holds strategic partnerships with over 20 governments worldwide.
What Industry Leaders Are Saying
Several senior executives expressed strong support for the initiative.
Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, said the stablecoin "marks a pivotal step in our commitment to strengthening the UAE's digital infrastructure ecosystem."
IHC CEO Syed Basar Shueb described the development as "a major breakthrough in the development of digital currencies."
Hana Al Rostamani, Group CEO of FAB, said: "FAB is proud to play our part as a founding member of this ground-breaking development."
Guillaume de La Tour, CEO of the ADI Foundation, said the stablecoin "marks a pivotal milestone in the UAE's journey toward a more inclusive and digitally empowered economy," highlighting its secure, transparent design and capacity to support large-scale digital operations.
Why This Matters for UAE Fintech
The launch of this UAE dirham-backed stablecoin is a landmark achievement in the country's mission to lead global financial technology. It is expected to have significant effects on financial operations and commercial transactions — connecting conventional banking rails with next-generation blockchain payment infrastructure and setting a regulatory template other Gulf economies may follow.
