Institutional investors highlight UAE’s crypto-friendly policies as a growth driver
The United Arab Emirates (UAE) is positioning itself to make cryptocurrency its second-largest industry within the next five years, fueled by favorable regulations, strong leadership, and a rapidly growing investment environment.
According to Chase Ergen, board member of DeFi Technologies, the country’s business-first approach makes it uniquely placed to dominate the global blockchain sector. “They sell oil, that’s their main business. I think their second-biggest business is going to be the blockchain industry in the next five years. This will start to be double-digit parts of the economy,” Ergen said.
UAE’s pro-tech foundation
Analysts point to several factors that have created fertile ground for crypto adoption. The UAE has a clear regulatory framework, a community of top crypto executives, a debt-free economy that reinvests surpluses into technology, and low crime rates paired with attractive tax policies.
“They have a reputation for leadership, legislation, and community,” Ergen emphasized, noting that forward-thinking governance continues to attract global crypto businesses to the region.
Nation-state adoption accelerating
The UAE’s growth trajectory comes amid a broader wave of nation-state adoption of digital assets in 2025. Following a shift in U.S. policy under President Donald Trump, other countries—including Pakistan—have pivoted toward pro-crypto stances. Pakistan, for instance, recently announced its national Bitcoin reserve and established a council to oversee digital asset regulation.
This environment of competitive adoption strengthens the UAE’s position as a regional hub for innovation. The country’s sovereign wealth fund, Mubadala, has already gained exposure to Bitcoin through exchange-traded funds, mirroring global institutional trends.
A new economic engine for the UAE
Experts believe the UAE’s blockchain industry could rival oil in significance as the country diversifies its economy. The strategy not only enhances resilience but also positions the nation as a leader in digital finance across the Middle East and Africa (MENA).
“The UAE has built a moat around its tech ecosystem,” said industry observer. “In five years, crypto could realistically stand as the backbone of the country’s economy after energy.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.