The cryptocurrency realm in the United Arab Emirates (UAE) is poised to evolve into its second-largest sector within the next five years, thanks to the nation’s regulatory framework and appealing business landscape, as stated by Chase Ergen, a board member of publicly listed digital asset investment company DeFi Technologies.
“They are known for their leadership, legislation, and community,” Ergen shared with Cointelegraph during an interview. He also anticipated:
“They trade oil, that’s their primary industry. I believe their second-largest sector will be the blockchain domain in the coming five years. This will start to represent double-digit percentages of the economy.”
The nation boasts a comprehensive crypto regulatory structure, a network of influential crypto industry leaders, a debt-free economy that enables the government to invest surplus in technology, low crime rates, favorable tax regulations, and progressive governance, Ergen noted.
The UAE has established a competitive advantage that has rendered it the uncontested center for crypto and technology in the Middle East and Africa (MENA), amidst rising national-level adoption of cryptocurrencies and the competition among sovereign nations to emerge as frontrunners in the era of digital finance.
Related: Dubai and UAE advance toward unified crypto frameworks through new partnership
National cryptocurrency adoption escalates in 2025
The acceleration of national-level cryptocurrency adoption was notable in 2025, following the inauguration of President Donald Trump in the United States and the regulatory changes that ensued.
The Trump administration unveiled its long-anticipated crypto document in July, highlighting the administration’s approach to positioning the US as the global leader in cryptocurrency.
The government of Pakistan rescinded its longstanding opposition to cryptocurrencies in November 2024, just one day before the US presidential election.
Since that announcement, Pakistan has formed a national Bitcoin reserve and created a national crypto council to devise an all-encompassing digital asset regulatory framework for the nation.
Sovereign investment funds, such as the UAE’s Mubadala and Norway’s sovereign wealth fund, have gained exposure to Bitcoin (BTC) through exchange-traded funds (ETFs) and various investment channels.
Norway’s sovereign wealth fund, recognized as the largest state-controlled investment fund globally, boosted its Bitcoin exposure by 192% in the past year, per the findings of crypto research entity K33.
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