Abu Dhabi has recently launched a stablecoin backed by Dirhams (AED), aimed at accelerating the adoption of digital currencies in the UAE and optimizing the payment system. The sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and International Holding Company (IHC) collaborated, with FAB responsible for issuance, under the supervision of the Central Bank of the UAE. The stablecoin operates on the ADI blockchain, supporting everyday transactions and AI and machine-to-machine payments, with the intention of enhancing regional financial infrastructure and promoting Abu Dhabi as a global blockchain innovation hub. This move challenges the dominance of US dollar stablecoins, demonstrating the UAE's ambitions in the digital economy, but attention must be paid to regulatory details and market acceptance.