Saudi Arabia has officially entered the global race for central bank digital currencies (CBDCs), joining the Bank for International Settlements’ (BIS) mBridge project—a collaborative effort with the central banks of China, Hong Kong, Thailand, and the UAE. This move positions Riyadh at the center of one of the most advanced cross-border CBDC experiments so far, with the goal of facilitating 24/7 wholesale settlements between nations.
Saudi Arabia’s participation in mBridge signals a shift from exploration to deployment. According to BIS, the platform is moving beyond the prototype stage, now being used for real transactions, with an MVP. This leap is critical, considering that most CBDC projects globally remain in either conceptual or pilot phases. The nation’s involvement grants it access to a functioning infrastructure that could redefine cross-border payment efficiencies and reduce dependency on traditional banking networks.
The Saudi Central Bank (SAMA) has been quietly experimenting with blockchain technology since 2020, including a bilateral CBDC pilot with the UAE named “Project Aber”. The program found that DLT-based currencies could improve cost and speed for cross-border transactions without compromising monetary policy. Now, mBridge represents a multilateral expansion of that logic, integrating multiple economies with differing monetary systems into a unified framework.
The move happens on a geopolitical subtext. By aligning with the BIS initiative, Saudi Arabia is balancing its economic ties between East and West. While the West is moving cautiously on CBDCs—partly due to regulatory and political hurdles—Asia and the Middle East are surging ahead with pragmatic implementation. The Saudis are now positioned to benefit from early-mover advantages in the CBDC arena, with key trade partners.
From a domestic policy point of view, SAMA has so far resisted launching a retail CBDC. Its current focus remains on wholesale applications, targeting financial institutions and international payments. This is consistent with the government’s risk-averse posture, given its reliance on exchange rates and the need to maintain macroeconomic stability during Vision 2030 reforms. A full retail rollout could come later, though.
Gulf states status
Meanwhile, Saudi Arabia is carefully watching regional developments. The UAE has already launched its digital dirham for cross-border use and domestic settlements. Bahrain and Qatar are also exploring retail CBDCs. These parallel efforts suggest a future in which Gulf states operate in collaboration—potentially boosting economic integration and strengthening regional trade blocs like the Gulf Cooperation Council (GCC).
Saudi Arabia’s CBDC strategy is pragmatic, calculated, and increasingly global. By engaging in mBridge, the Kingdom gains technological leverage while maintaining its conservative stance on retail adoption. It’s a playbook that mirrors its broader economic diversification efforts. As other countries wrestle with pilot delays and political roadblocks, Saudi Arabia is already walking into the future of global finance.
