In recent years, Abu Dhabi has actively positioned itself in the stablecoin sector, leveraging the flexible regulatory framework of its financial free zone, ADGM (Abu Dhabi Global Market), to promote compliant cryptocurrency innovation. In 2023, ADGM updated its regulatory policies to clarify stablecoin issuance standards, attracting collaborations with institutions like Circle to pilot cross-border payments. Its advantages lie in its geographical hub status, sovereign wealth fund capital support, and the need for economic transformation from oil dependency, aiming to integrate stablecoins like the digital dirham into trade settlements and cross-border remittances. However, it must balance international regulatory coordination (such as FATF anti-money laundering rules) with technological innovation while facing competition from places like Singapore and Europe. Abu Dhabi's exploration could reshape the digital financial ecosystem in the Middle East.