Dubai’s Department of Finance announced on Thursday the successful completion of a preliminary technical pilot that allowed a government service fee to be settled in UAE dirhams using digital assets. The test, carried out in collaboration with the Dubai Land Department through the “Dubai Pay” platform managed by the Digital Dubai Authority, ran inside a secure, closed environment and processed a payment for the “Issuance of a Property Map” service.
The transaction was routed via the platform operated by Foris Dax Middle East, which the authorities noted is the first Virtual Asset Service Provider in the UAE to receive in-principle approval from the Central Bank for a Stored Value Facilities license. Officials stressed that the exercise was strictly a technical proof-of-concept to validate systems and infrastructure ahead of any wider rollout.
The Future of Digital Transactions
His Excellency Abdulrahman Al Saleh, Director General of Dubai’s Department of Finance, described the pilot as “a proactive step toward the future of digital transactions in the emirate.” He said the trial aligns with Dubai’s strategy to adopt advanced financial technologies while maintaining “the highest standards of security and compliance,” adding that the department is exploring solutions that will enhance government payments and accelerate the shift to a fully digital economy in line with the leadership’s vision.
H.E. Hamad Al Mansoori, Director General of Digital Dubai Authority, framed the initiative as part of a broader push toward “City as a Service,” where modern financial technologies integrate seamlessly with government systems to create a single, frictionless experience. “The initial implementation of paying government service fees using digital assets marks a new milestone in Dubai’s journey toward full digital transformation,” he said, noting the move helps diversify payment options and supports the emirate’s Cashless Strategy and the Dubai Economic Agenda (D33).
Omar Bushahab, Director General of the Dubai Land Department, emphasized the department’s focus on technical readiness and regulatory compliance before any full-scale deployment. “We are working with our partners to ensure the readiness of the technical infrastructure and full regulatory compliance before proceeding to actual deployment,” he said.
Officials from the Department of Finance reiterated the pilot’s aims to validate operational and technical efficiency. Ahmed Meftah, Executive Director of the Central Accounts Sector at the Department, said the trial’s purpose was to “ensure the highest levels of security once officially adopted in the future.”
Amina Lootah, Director of Digital Payment Systems Regulation at the Department of Finance, confirmed the transaction was settled in UAE dirhams through fully integrated systems, and called the achievement “first-of-its-kind” as part of efforts to make 90 percent of financial transactions in the emirate digital by 2026.
Private-sector partners also welcomed the pilot. Eric Anziani, President and COO of Crypto.com Group, said, “The Government of Dubai has been a true global visionary with its plans for a cashless society. We are proud to support Dubai’s Department of Finance in its efforts as part of this initiative and the delivery of the first comprehensive and holistic Government-wide implementation of digitalization of payments. We are excited to bring our capabilities and innovative thinking to catalyze this progress.”
Mohammed Al Hakim, President and General Manager – UAE at Foris Dax Middle East, said, “This milestone comes within the framework of the preliminary approval granted by the UAE Central Bank, marking a preparatory phase toward building a secure and sustainable digital payment ecosystem that serves both the government and society.”
Ahmed Al Qassim, Group Head of Corporate and Institutional Banking at Emirates NBD, said the bank’s participation reflects a commitment to Dubai’s ambition to become a global hub for innovation and digital finance and to help lay the foundation for a resilient future financial ecosystem. Officials say further testing and regulatory checks will continue as Dubai moves cautiously toward any broader implementation of digital asset settlement for government services.
Source: https://blockchainreporter.net/dubai-pilots-first-government-payment-settled-in-dirhams-via-digital-assets/
