In recent years, the crypto market share of the UAE is witnessing high growth. For instance, from 2020 to 2022, the country’s growth in the number of registered crypto businesses was over 400%. Today, the UAE’s share in the global crypto market transactions stands at around 9.2%. The region itself has become a favorable spot for cryptocurrencies because the blockchain-related programs have increased by 300%.
UAE has over the years become a favorite spot for cryptocurrencies. The UAE government and its citizens are showing deep interest in decentralized finance (DeFi), institutions, and individuals. The statistical figures show that the number of crypto users was only 0.3 million in 2020. In 2023, the country had over 2.36 million crypto users. In 2024, it is expected to reach 2.76 million. These are some of the factors that are responsible for the growing popularity of cryptos.
The crypto policies in Dubai are largely responsible for the unprecedented rise of cryptos in the UAE. The global crypto market share in the UAE has also increased because the city favors cryptos in both letter and spirit. The city has adopted a forward-thinking approach to digital assets. For example, Dubai has the International Financial Centre which is 100% foreign-owned and has full tax exemptions.
Dubai also has an impartial regulatory authority called the Dubai Financial Service Authority. It offers a regulatory framework that helps in balancing both the prospects of innovation and the risks associated with it.
The UAE government encourages large-scale crypto investments. For example, in Abu Dhabi, companies like eToro Group Limited, Paxos Trust Company, and Copper Technologies Limited now have licenses to run crypto-affiliated businesses. It is also true that the country now has an earmarked economic zone called Abu Dhabi Global Market.
The blockchain strategy in Dubai is positively affecting the cryptocurrency market in the UAE. It is ushering in new business opportunities in the city and is also responsible for enhancing Dubai’s reputation in the global crypto market. Experts estimate that by popularizing the use of blockchain Dubai may gain around 5.5 billion dirhams. Moreover, the strategy will also open roadmaps for the creation of a neutral platform to share the technology. Blockchain strategy will increase the market share of cryptos because it will positively impact industry creation, international trade, and government efficiency.
The combined impact of favorable factors is increasing the crypto market share in the UAE. Researchers expect the cryptocurrency market in the country to reach or cross $292.1 million in 2024. The annual growth rate or CAGR is expected to be 7.89%. The average revenue in the cryptocurrency market will be around $105.7 in 2024.
The increasing crypto market share of the UAE is not surprising. The attitude of the government and the citizenry plays a key role in ensuring that the market expands without any difficulties. Currently, the country has become a strong bastion for crypto companies. Tax rebates, favorable policies, and appropriate and good quality infrastructure are contributing to the continued expansion of the crypto market.