The Gulf region, especially Dubai and Abu Dhabi, is now globally recognised as a serious contender for the crown of the cryptocurrency hub. Major financial institutions like Goldman Sachs, Rothschild and Lazard have established or expanded their presence in the region – including in Riyadh – to tap into the Middle East’s growing appetite for digital assets. With progressive regulation, deep capital pools and a bold vision for the future of finance, the Gulf is rapidly becoming a magnet for global crypto and Web3 players.
In recent months, the United Arab Emirates and its neighbours have rolled out a wave of initiatives from central bank stablecoins to major institutional investments in the space. Backed by strong government support and clear regulatory frameworks, regional adoption is accelerating. The result: a dynamic, fast-maturing market marked by impressive growth metrics and headline-making announcements.
In this edition of the Crypto Market Monitor, we delve into the Middle East’s accelerating crypto landscape through four key lenses: stablecoins and payments, adoption trends, institutional confidence, and the rise of real estate tokenisation.
Gap left by Western Regulators
Many Western regulators have taken a measured and fragmented approach to formalising crypto regulation. The US has historically leaned toward enforcement-led actions rather than establishing a clear, licensing-friendly framework.
The EU’s Markets in Crypto-Assets (MiCA) regime has only recently come into full effect. This regulatory lag created a temporary window of opportunity – one that Gulf nations, with their proactive policies and business-friendly stance, have been quick to seize.
The Middle East Growth Story
Among the top crypto economies in the Middle East are Saudi Arabia, the United Arab Emirates, Qatar, Libya, and Algeria – all of which have experienced significant consumer uptake in crypto services. The UAE has seen explosive demand, as evidenced by a staggering 241% increase in cryptocurrency app downloads from 2023 to 2024. From 6.2 million installs in 2023, the total surged to 15 million in 2024, with over a million new installs per month by late 2024. December alone saw a record-breaking 2.8 million downloads, underscoring the rapid growth of the sector. This uptick reflects a wider trend of friendly policies. The UAE’s focus on clear regulation and open markets has drawn both enthusiasts and casual users. For example, the launch of Emirates Digital Wallet in 2023 and various public awareness campaigns have made it easier for people to access crypto on their phones. Home to a large expatriate population and heavy cross-border trade, the UAE also sees crypto as a convenient digital payment alternative.
Neighbouring countries are also witnessing strong growth. According to Chainalysis, Saudi Arabia remained the fastest-growing crypto economy in the Middle East during 2024, up 154% year-over-year as local interest and blockchain innovation soared. Qatar followed, growing 120% YoY, buoyed by the Qatar Financial Centre’s launch of a new regulatory regime for digital assets in late 2024. Bahrain’s central bank, for instance, has repeatedly updated its digital assets framework and even licensed global crypto firms. (For example, in September 2024, Crypto.com gained full approval as a Payments Service Provider in Bahrain.)
Figure 1: Fastest growing crypto economies in MENA
Source: Chainalysis
Thus, across the Gulf Cooperation Council (GCC) region, crypto is entering the mainstream. The combination of government support, regulatory clarity and customer interest is creating fertile ground for new products. This widespread adoption serves as a foundation for the region’s ambition: to not just use crypto but to shape its future.
Institutional Confidence and Big Investments
The Middle East’s ambitions go beyond grassroots adoption. They also embrace big players and deep pockets. A prime example is MGX, an Abu Dhabi investment company backed by sovereign funds and tech firms. In March 2025, MGX injected $2 billion worth of cryptocurrency into Binance. That deal was MGX’s first public crypto move and made it a minority shareholder in Binance. This cemented deeper ties between the global exchange and the UAE. Abu Dhabi’s sovereign fund Mubadala is a partner in MGX, indicating how official strategic funds view crypto as being key for the country’s economic interests.
Similarly, leading crypto firms are seeking regulated footholds. US-based Ripple Labs made headlines by securing approval from Dubai’s regulator (the DFSA) to offer licensed crypto payments and services in the Dubai International Financial Centre (DIFC). This marked Ripple’s first licensed operation in the Middle East. For firms like Ripple, being able to operate in DIFC means tapping into the UAE’s vast cross-border finance market under a compliance-first umbrella. It also signals trust in the UAE’s transparent regulatory regime, where technology companies can collaborate with regulators rather than face blanket bans.
Crypto startups and VCs are flocking to Dubai. Chainalysis recently opened a regional hub in the city and on the traditional side, banks and fund managers are eyeing blockchain projects. This institutional momentum of big investment funds and banks exploring crypto-as-a-service models provides heavy credence to the region’s crypto sector. It moves the ecosystem from a fringe interest to a mainstream financial activity, reinforcing stability and growth.
Blockchain and Real Estate Innovation
Another frontier in the Gulf’s blockchain story is real estate. Dubai, with its massive property market, is taking an early lead on property tokenisation. In late 2024, Dubai Land Department (DLD) launched a pilot allowing certain property transactions to be tokenised. In the wake of that, Serenity (a local blockchain firm) announced a tie-up with real estate investment firm MTA Real Estate to build a full-stack, blockchain-powered, real estate investment portal. The portal will allow buyers to browse approved Dubai listings, pass biometric KYC checks and complete property purchases in crypto, all via smart contracts.
The DLD expects the tokenised real estate market in Dubai to exceed $16 billion by 2033. If achieved, this would position the UAE at the forefront of real-world asset tokenisation globally. The groundwork is being laid: local laws and digital wallets are being updated, real estate firms are partnering with tech startups and investors (both domestic and foreign) are lining up to use crypto in high-value property deals. In effect, Dubai is turning itself into a live testing ground for next-generation asset registries with regulations that could become a template for other jurisdictions.
Stablecoins and Digital Payments
One of the most striking recent moves is The Central Bank of the UAE’s recent announcement of AE Coin, the country’s first stablecoin pegged 1:1 to the UAE Dirham. Fully backed by reserves in Dirhams, AE Coin has been built on blockchain technology which gives users stability, efficiency and security in their transactions.
Its launch follows new regulations permitting businesses to accept dirham-backed stablecoins for payments. By integrating a UAE-regulated stablecoin into mainstream payments, policymakers aim to marry the flexibility of crypto with financial reliability.
Another sign of modernising payment rails is Mastercard’s Crypto Credential. Earlier in January, Mastercard announced that it has expanded this solution into the UAE (and Kazakhstan) for the first time in the region. Crypto Credential allows users to send and receive crypto using easy aliases instead of raw blockchain addresses, while enforcing regulatory checks behind the scenes. In practice, this means UAE-based exchanges (like CoinMENA and others) and wallets can streamline transactions for customers, verifying users against regulatory standards and preventing loss. This step signals that major payments firms see the region as crypto-ready and are deploying tools to make digital asset use as simple as traditional payments.
Regional Momentum and Collaboration
While the UAE often takes center stage in headlines, it’s important to see these developments as part of a broader Gulf and Middle East trend. Saudi Arabia, for instance, has overt crypto growth and a thriving fintech scene. The country’s crypto economy growth has been driven by initiatives like the Saudi Central Bank exploring a digital Riyal, growing tech startups and gaming projects, and an influx of crypto-savvy youth. Qatar, too, is building digital-asset infrastructure: the Qatar Financial Centre introduced new digital asset regulations in 2024, cementing legal foundations for tokenisation and crypto businesses. In Bahrain, regulators have been pioneers: the country’s central bank was among the first in the region to license crypto exchanges and fintech firms. Notably, Bahrain saw its national bank launch the Gulf’s first Bitcoin investment fund (a tokenised fund with built-in principal protection) to tap institutional demand.
These regional moves show a shared ambition: the Gulf states see digital assets not as a fad to be suppressed but as engines of economic diversification. It’s clear that the Middle East wants to shape the future of finance, not just follow it. Collaborative efforts are emerging too, with platforms like the Abu Dhabi Global Market (ADGM) and DIFC working to harmonise rules and attract talent. For local businesses and expatriates in the region, this translates into a growing ecosystem with more local crypto services, regional exchanges, digital asset funds and more blockchain pilots in key industries.
Looking Ahead
Amid these developments, optimism is high. Government officials and industry leaders alike describe the Middle East’s crypto journey as only beginning. The region’s playbook of combining forward-looking regulation with investment and infrastructure has so far delivered results. For instance, the UAE’s sandbox approach where new blockchain ideas are tested under regulatory supervision, has avoided boom-bust shocks and built trust. As traditional economies diversify, digital assets represent both opportunity and ambition.
The region has become a regular stop for big crypto events like the Future Blockchain Summit, Dubai FinTech Summit and CryptoExpo Dubai. Currently, Dubai is hosting one of the biggest of them: TOKEN2049 with over 20,000 people from crypto, Web3 and finance coming together. AMINA Bank is proud to be part of the event and to help shape the future of digital finance.
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