UAE sees $34 billion crypto surge as clear regulations, zero-tax policies attract investors: Report
Khaled Al Khawaldeh (Abu Dhabi) The UAE has pulled in $34 billion in crypto inflows between July 2023 and June 2024, representing a 42% year-on-year growth and positioning the Emirates among the world's leading markets for digital currencies, according to a new report by blockchain solutions provider Mining Grid. The report, titled 'The Middle East Cryptocurrency Landscape 2025', highlights how the country's forward-thinking approach to regulation, combined with its zero-tax environment for digital asset transactions, has unlocked unprecedented growth. 'The UAE's clear regulations and zero capital gains tax have created the perfect environment for crypto growth,' said Solaiman AlRifai, Founder and Board Member of Mining Grid.'With an engaged and forward-looking population, it's no surprise the country is now seen as the crypto capital of the Arab world.'Mining Grid's data shows that over 93% of the region's total crypto inflows – amounting to $338.7 billion across the Middle East during the same period – came from large, institutional-sized transfers. It says that this signals that regional markets are increasingly focused on long-term strategies rather than speculative, high-risk trades.Globally, the Middle East now ranks as the seventh-largest crypto market, and the UAE's contribution has been pivotal in this growth. The reports analysts point to the country's clear legal frameworks, sophisticated financial infrastructure, and Web3 adoption as central factors in attracting both retail investors and major institutions.The youth's interest in the market was identified as a key driver of the UAE's crypto boom. The Mining Grid report found that over 74% of Emiratis and expatriates aged 25-34 have shown active interest in cryptocurrencies.Social media platforms were said to be central to this youth movement with the convergence of viral video trends, instant messaging communities, and on-demand crypto education empowering a new generation to enter the digital asset space with unprecedented speed.Alongside this rapid growth come important challenges. Nearly half of young crypto users surveyed have expressed concerns about misinformation spreading across social media channels. The report warns that misleading claims or poorly understood advice can expose inexperienced investors to scams or unsustainable strategies. This presents a critical opportunity for trusted platforms, licensed exchanges, and educators to establish themselves as reliable sources of knowledge, fostering responsible adoption.Institutional engagement is also deepening. Mining Grid's data suggests that a rising number of UAE-based family offices and investment firms are now incorporating crypto allocations into their portfolios, reflecting growing confidence in the market's stability. This institutional participation has helped shift perceptions of cryptocurrencies in the Emirates from speculative instruments to viable components of diversified investment strategies.The UAE's success is closely tied to its commitment to building a comprehensive crypto ecosystem. Recent regulatory milestones include frameworks set by the Dubai Virtual Assets Regulatory Authority (VARA) and Abu Dhabi Global Market's Financial Services Regulatory Authority (FSRA), which have both established robust guidelines for licensing exchanges, digital asset custodians, and token issuers.
'The UAE has created the ideal environment where curiosity meets clarity. We're seeing a new generation that doesn't just want to invest in crypto but wants to understand it, build with it, and lead its next chapter,' said Rami Alsridi, Founder and CEO of Mining Grid.
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