In recent years, Abu Dhabi has actively laid out its plans in the stablecoin sector, relying on 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, clarifying the standards for stablecoin issuance and attracting institutions like Circle to collaborate on pilot projects for cross-border payments. Its advantages lie in its geographic hub status, sovereign fund capital support, and the need for economic transformation away from oil, with the goal of integrating 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 also facing competition from places like Singapore and Europe. Abu Dhabi's exploration may reshape the digital financial ecosystem in the Middle East.