The cryptocurrency industry in the UAE is expected to become the country's second-largest economic pillar within the next five years, thanks to its regulatory policies and favorable business environment. Chase Ergen, a director at DeFi Technologies, believes this will rapidly drive the development of the blockchain industry.
"They sell oil, which is their main business. I believe that in the next five years, the blockchain industry will become their second-largest business, accounting for a double-digit percentage of the economy."
The UAE has a clear crypto regulatory framework and an important community of senior executives in the crypto industry, with a debt-free economy that allows the government to invest surplus funds in technology. Furthermore, the country has a low crime rate, tax incentives, and forward-thinking leadership, making it the undisputed center for crypto and technology in the Middle East and Africa.
As countries around the world accelerate the adoption of cryptocurrencies, major powers are competing to become global leaders in the digital finance era, with the UAE leading in this race.
In 2025, alongside President Trump's inauguration, the adoption of cryptocurrencies in the U.S. accelerated. Following this, the UAE's government and businesses have increased their investments in the crypto industry.
At the same time, Norway's sovereign wealth fund has increased its Bitcoin holdings by 192% over the past year.