Air Arabia begins using the AED stablecoin for payments in the UAE

UAE-based Air Arabia airline is accepting AED stablecoin, the regulated AE Coin developed by UAE MBank Al Maryah Bank, for flight booking payments. The airline is reportedly the first in MENA to offer a stablecoin-based payment option. Users can book their flights using the AEC Wallet application developed by MBank.

The AE Coin was the first stablecoin to be regulated by the Central Bank of the UAE and is pegged 1:1 to the UAE dirham. This ensures not only price stability but also low transaction fees.

Air Arabia customers can book flights with AED stablecoins

Air Arabia’s customers can now select the AEC Wallet at checkout when booking via the airline’s website.

Adel Al Ali, Group Chief Executive Officer, Air Arabia said, “We are proud to partner with Mbank to introduce AE Coin as a secure and innovative payment option for our customers. At Air Arabia, we are committed to embracing digitalization across our operations, and this partnership reflects our efforts to enhance our customer experience through technology.”

He noted that the newly introduced payment option through the AEC Wallet reflects their efforts to adopt smart solutions that bring greater value, choice and flexibility to their growing customer base.

Mohammed Wassim Khayata, CEO of Mbank, added, “Through this partnership, we are not only enhancing the booking process but also contributing to the UAE’s broader goal of creating a truly inclusive, digitally empowered financial ecosystem.”

📢 We’re proud to partner with @almaryahbank and @Aecoin_UAE to launch the region’s first stablecoin payment option for flight bookings via the AEC Wallet. Secure. Seamless. Digital-first.

— Air Arabia (@airarabiagroup) May 26, 2025

Ramez Rafeek, General Manager of the AED stablecoin, believes that the partnership is a key milestone for AE Coin because the digital currency is even more accessible to everyday consumers.

He stated, “By integrating AE Coin into flight bookings, we are simplifying the payment experience for travelers and enabling a seamless cashless solution that aligns with the growing digital economy. Air Arabia’s leadership in adopting digital payment solutions within the aviation industry is an exciting development that will set the stage for wider adoption of digital currencies in the region.”

UAE banks are developing AED stablecoins

Today’s announcement is part of broader efforts in the UAE to introduce stablecoins and payments after the Central Bank of the UAE approved AED stablecoins as legal tenders in the country.

In April, ADI Blockchain Foundation announced it would develop an AED stablecoin to be issued by First Abu Dhabi Bank, with the support of ADQ, a sovereign investor.

Prior to that, Tether had announced that it would seek a license to issue a stablecoin in partnership with Pheonix Group. Moreover Circle Internet Group, Inc., a stablecoin market leader and issuer of USDC stablecoin received In-Principle Approval (IPA) from the Financial Services Regulatory Authority (FSRA) of ADGM in the UAE to operate as a money services provider.

Even DP World, a global player in the logistics and trade ecosystem, is partnering with financial and technology providers to address inefficiencies in cross-border payments with a stablecoin issuance. The announcement was made at the World Economic Forum in Davos.

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