SARA ALZAABI (ABU DHABI)

The UAE leads the way in cryptocurrency adoption, particularly in the MENA region, a recent report revealed. As the country continues to make huge strides in the sector, digital assets are transforming financial transactions, from investments to everyday payments.

In a recent release, fintech company Bitpanda Technology Solutions spotlighted the UAE as a leader in crypto adoption. 

In 2024, downloads of the top 49 cryptocurrency apps surged to 15 million in the UAE, marking an increase of 41% over the previous year. In January 2025 alone, app installations hit 3.55 million, proving a growing demand.

By the end of 2025, user penetration is forecast to settle at 39.1% as using cryptocurrencies becomes a widespread phenomenon.

"Crypto adoption in the UAE is fueled by a perfect storm of innovation, regulation, and forward-thinking leadership," Nadeem Ladki, Global Head of Bitpanda Technology Solutions, told Aletihad. 

"The country has positioned itself as a global fintech hub, with regulatory bodies like VARA (Virtual Asset Regulatory Authority) and ADGM (Abu Dhabi Global Market) creating a secure and transparent framework for digital asset transactions. This regulatory clarity fosters trust, attracting businesses, institutional investors, and retail traders alike. At the same time, initiatives like the introduction of AE Coin, the UAE's first dirham-pegged stablecoin, showcase the government's commitment to integrating blockchain technology into the mainstream economy," he added. 

Almost 40% of UAE residents interact with digital assets, making the UAE one of the top voices on the global crypto platform, the report said. 

Emerging as one of the world's most crypto-friendly jurisdictions, the country stands shoulder to shoulder with global leaders like the US, Singapore, and Switzerland, Ladki said. However, the UAE stands out in several aspects. 

"What sets the UAE apart is its proactive regulatory approach, which provides clear guidelines rather than reactive restrictions. While many countries still grapple with regulatory uncertainty, the UAE has established a robust framework that encourages responsible innovation while safeguarding investors. This balance has attracted over $30 billion in crypto investments in 2024 alone, cementing its position as a key player in the global digital asset space," the expert said. 

Abu Dhabi and Dubai have become significant hubs for blockchain startups and investors, as the UAE builds an infrastructure that blends traditional with decentralised finance.

Impact on Businesses and Consumers

With rising crypto adoption, everyday transactions are bound to change, Ladki said. 

"Crypto is set to redefine financial transactions in the UAE by making payments faster, more cost-effective, and borderless. With the approval of AE Coin, businesses and consumers now have a stable, government-backed digital currency that enables instant transactions without the friction of traditional banking processes," he said.

"Whether it's paying for groceries, booking flights, or transferring remittances, crypto will streamline financial interactions, making them more efficient and inclusive."

Extending beyond payments, blockchain's influence could also touch real estate, supply chain management, and government services, the expert said. 

Digital assets are transitioning from being investment vehicles to means of everyday transactions, which will subsequently enhance economic efficiency and accessibility as more businesses and institutions start accepting them.

Financial Inclusion

The AE Coin, Ladki said, is "a major milestone for the UAE's digital economy" as it bridges the gap between traditional finance and blockchain-powered transactions.

"As a dirham-pegged stablecoin, AE Coin provides all the advantages of crypto - instant transactions, security, and transparency - without the volatility typically associated with digital assets. This makes it an ideal solution for remittances, e-commerce, and even payroll processing, offering businesses and consumers a seamless way to transact in a stable digital currency."

In five years, the UAE is aiming to be one of the most modern crypto economies in the world.

The market is expected to face an uptrend from $292.1 million in 2024 to $395.8 million in 2028, driven by increased adoption, integration into governments, and rising numbers of users.

Such initiatives on blockchain talent and its infrastructure, nurturing a projected 42% CAGR for the industry with 2030 as a target, will locate the UAE amongst the first of digital finance and Web3 innovation firms in the world.