UAE Pulls Ahead with Clear Stablecoin Rules and Dual-Track Model
The United Arab Emirates (UAE) has emerged as a leader in stablecoin regulation, according to an analysis by Arthur D. Little released on September 1, 2026. The country's framework for fiat-backed tokens, introduced in June 2024, provides clear rules and a dual-track model that allows dollar- and dirham-backed stablecoins to operate side by side.
This approach differs from other jurisdictions, which have struggled with regulatory uncertainty and conflicting frameworks. In the UAE, payment tokens are treated as regulated payment infrastructure, rather than an asset class to be debated. The Central Bank's Payment Token Services Regulation sets out clear requirements for stablecoin issuers, providing a stablecoin issuer requirements checklist that businesses can rely on.
The dual-track model separates dollar-backed stablecoins (such as USDC and RLUSD) for international payments from dirham-backed stablecoins (like DDSC) for domestic UAE transactions. This division of labor makes it easier for global businesses to navigate the regulatory landscape and operate in the UAE.