Amna Puri-Mirza
Research Expert covering the Middle East
Dubai plans to become a new crypto-hub - statistics & facts
The global transaction value of cryptocurrency worldwide is currently around 1.2 billion U.S. dollars and is forecasted to double by the end of the decade. The United Arab Emirates government is eager to establish Dubai as a global cryptocurrency hub, increasing the emirate’s global commercial presence and promoting economic diversification. This is supported by the fact that Dubai is already a leading financial center in the Middle East and North African region and has readily adopted cryptocurrency.
Dubai as leading financial hub in the MENA region
The revenue of the cryptocurrency market in the United Arab Emirates is currently projected at 292 million U.S. dollars, forecasted to increase by 7.9 percent in the coming years. Cryptocurrency trade is considered a key component in the emirate's ambition as an innovation and technology center. The government has implemented regulatory support that is flexible and allows for adaptation to the fast changes in financial and digital marketplaces. The UAE’s Financial Services Regulatory Authority established guidelines for cryptocurrency and digital assets.The future of cryptocurrency in the UAE
The United Arab Emirates is one of the world’s leading cryptocurrency adopters in e-commerce. As of 2022, 38 percent of e-commerce vendors in the UAE accepted cryptocurrency as a payment method, and a further 48 percent planned to accept it by 2024. Currently, the UAE has the largest share of cryptocurrency owners than anywhere else in the Middle East and North African region. In the long term, Dubai hopes to replace London and other financial centers as the world’s largest crypto hub, with the competitive advantage of a zero percent tax rate. At the same time, with the establishment of crypto-businesses, the increase of crypto-crime is anticipated to increase as well. Foreseeing those challenges, the government of Dubai has established the Virtual Asset Regulatory Authority. The government of the UAE is hoping to build on this success and establish their own cryptocurrency by 2026.
