New crypto capital of Mideast? UAE sees $34 billion boom in crypto use

Dubai: The UAE is rapidly cementing its status as the Middle East’s digital finance capital, as new data reveals the country attracted $34 billion (Dh124 billion) in crypto inflows over the past year.

This 42% year-on-year growth signals a turning point for the nation, reflecting a strategic shift from crypto-curious to crypto-committed.

According to a new report by blockchain infrastructure provider Mining Grid, the UAE now hosts more than 500,000 daily crypto traders, positioning it among the most active digital asset markets globally.

Regionally, the Middle East saw inflows totaling $338.7 billion, making it the world’s 7th largest crypto economy, with 93% of volume driven by institutional-grade transactions—a clear sign of market maturity.

Driving much of the UAE’s crypto momentum is its young, tech-savvy population. Over 74% of UAE residents aged 25–34 express interest in crypto, with 21% planning to enter the market within 12 months.

Popular platforms like TikTok, WhatsApp, and YouTube are the top discovery tools for digital finance, creating a socially networked generation actively seeking financial independence through blockchain technology.

While this energy fuels growth, it also highlights the need for trustworthy education platforms, as nearly half of young users express concern over crypto misinformation.

"The UAE’s clear regulations and zero capital gains tax have created the perfect environment for crypto growth," said Solaiman AlRifai, Founder & Board Member at 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."

The UAE’s progressive stance—combining clear regulation, economic diversification goals, and tax incentives—continues to attract institutional and retail investors.

Authorities have taken a proactive approach to digital assets, promoting responsible innovation while ensuring market integrity.

Mining Grid CEO Rami Alsridi added: "We’re seeing a generation that doesn’t just want to invest in crypto—they want to build with it and lead its next chapter. The UAE has created a landscape where curiosity meets clarity."

Neighboring countries are also ramping up digital finance initiatives:

Bitcoin remains the region’s top crypto asset, while Ethereum's resilience and real-world tokenisation efforts—from real estate to bonds—are attracting institutional attention. Stablecoins now represent 66% of all on-chain transactions, underlining their role in efficient value transfer.

Mining Grid, active in the UAE and serving over 60,000 users globally, is rethinking energy-intensive crypto mining. The firm is promoting it as a strategic infrastructure solution that aligns with Gulf states' clean energy and sustainability agendas.

Looking ahead, Mining Grid projects that youth-led accounts will drive the region’s next crypto growth wave by Q4 2025. Mobile-first platforms, gamified finance, and green crypto infrastructure are expected to be defining trends across the GCC.