Despite the global market’s fluctuating nature, revenue in the UAE’s cryptocurrency sector is projected to grow annually by 7.89%, reaching $395.8 million by 2028, up from $292.1 million this year, according to a recent study.
With only a 10% adoption rate in the Middle East, crypto uptake remains low. However, recent data suggests this trend will not persist. Bitget Research indicates that the average daily number of crypto traders in the region surpassed 500,000 in February, marking a 51% year-over-year (YOY) increase from 2023. During this period, the UAE has been a regional leader in crypto adoption per capita, with a 68% YOY rise in daily traders.
“Since its inception over 50 years ago, the UAE’s aim to diversify away from oil has been clearly outlined — and for decades, this government-led effort has been reinforced by various mandates, across several industries. 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,” said Walid Benothman, managing director of Bitpanda.
Founded in Vienna in 2014, Bitpanda is one of Europe’s leading crypto brokers. The company offers over 2,800 digital assets, including more than 400 cryptocurrencies, various stocks, ETFs, precious metals, and commodities. This Austrian fintech unicorn provides one of the most comprehensive ranges of digital assets available in Europe.
From the Dubai Blockchain Strategy to the Emirates Blockchain Strategy, and most recently, the DMCC Crypto Centre, the UAE’s efforts to embrace cryptocurrency are evident. According to Bitpanda, this is directly correlated with rising institutional adoption. Banks and financial services are actively seeking ways to provide virtual asset services to their clients while aligning with the UAE’s key priorities. After achieving a record-setting revenue of Dh400 million in Q1 2024, Bitpanda reached a new milestone of 5 million total users by Q2 and secured DMCC licensing. As Bitpanda MENA, the company is poised to support the UAE’s diversification efforts by unlocking digital assets for millions of investors.
“Since its inception, the UAE’s aim to diversify away from oil has been clearly outlined — and for decades, this governmental-led effort has been reinforced by various mandates, across several industries. 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,” reiterated Walid Benothman, managing director of Bitpanda.
As the UAE continues to implement strategic initiatives to integrate cryptocurrency into its economy, the nation is positioning itself as a global leader in the crypto market. The forecasted growth in the sector reflects the UAE’s commitment to innovation and economic diversification, setting the stage for a robust digital future.