Despite volatility elsewhere, the crypto sector in the UAE continues to enjoy a period of consolidation and growth supported by several government-led initiatives.
Despite only entering the UAE market as Bitpanda MENA in May 2024, the crypto platform has revealed ambitions to support digitisation efforts in the region by unlocking digital assets for millions of investors.
Efforts to diversify the economy across the UAE are no secret, and the local government has been actively engaging in efforts to move away from economic reliance on oil for over 50 years.
“For decades, this governmental-led [diversification] effort has been reinforced by various mandates, across several industries, to foster a future-proof nation,” explained Walid BenOthman, managing director of Bitpanda MENA. “Crypto has increasingly become a part of this journey, with the UAE recognising the enormous potential that it holds not only regionally but also globally.
“By initiating strategies to integrate crypto as a mainstay within its borders, the country is ushering in a new era to become a leading crypto hub worldwide.”
Despite the global market’s fluctuating nature, revenue in the UAE’s crypto sector is expected to grow by 7.89 per cent annually to reach $395.8million by 2028, up from $292.1million this year. With a 10 per cent rate in the Middle East, crypto adoption is low, however, recent data indicates this trend won’t persist.
Supporting crypto growth
According to Bitget, the average daily number of crypto traders in the region exceeded 500,000 in February 2024, reflecting a 51 per cent YoY growth from the same month in 2023. During this period, the UAE elevated regional growth by leading crypto adoption per capita with a 68 per cent YoY rise in daily traders.
As part of efforts to make the UAE a leading crypto hub, the government has engaged with initiatives including the Dubai Blockchain Strategy, the Emirates Blockchain Strategy, and more recently the launch of the DMCC Crypto Centre reinforcing this notion.
This showcases the nation’s efforts to embrace cryptocurrency in an increasingly digital world. According to Bitpanda, this is directly correlated to rising institutional adoption, as banks and financial services are actively pursuing ways to provide virtual asset services to their clients, while also aligning with the key priorities of the UAE.
After recording a record-setting revenue of AED400million in Q1 of 2024, Bitpanda has since reached a new milestone of 5,000,000 total users as of Q2 while also securing DMCC licensing of its own.
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