BATOOL GHAITH (ABU DHABI)

The UAE is one of the world’s most advanced digital‑asset markets due to its clear regulatory frameworks, sandbox regimes, and activity‑based licensing, according to a report issued by the Global Finance & Technology Network (GFTN) in collaboration with Arthur D Little.

The Global Digital Assets Report 2025 highlights how the UAE’s regulatory progress is setting international standards for innovation, investor protection and market integrity.

According to the report, the UAE ranks alongside Singapore and Switzerland in regulatory maturity. ADGM’s Financial Services Regulatory Authority (FSRA) and Dubai’s Virtual Assets Regulatory Authority (VARA) are recognised for implementing activity-based licensing that connects innovation to investor protection.

The study draws on interviews with more than 40 regulators, central bankers and financial executives from Asia, Europe and the Middle East. It finds that investor participation is rising fastest in markets with clear regulatory parameters. GCC jurisdictions are now part of that group, reflecting structured cooperation across the UAE and Qatar to support responsible market development and interoperability.

Dr Ryan Lemand, co-Founder and CEO of Abu Dhabi-based Neovision Wealth Management, said that the UAE’s recognition is a validation of years of deliberate policy design that combined regulatory clarity with openness to innovation.

Unlike many jurisdictions that oscillated between overregulation and hesitation, the UAE built a pragmatic framework. ADGM’s FSRA developed early institution-grade digital-asset rules aligned with FATF standards, while Dubai’s VARA created a parallel structure attracting global exchanges and Web3 firms, Lemand explained.

“Together, they positioned the UAE as a credible, rule-based environment that balances investor protection with technological freedom. This recognition, therefore, signals not only global confidence in the UAE’s regulatory sophistication but also a deep strategic shift,” Lemand told Aletihad.

He said that the UAE is no longer a follower in financial innovation, but it is a rule-maker in the digital economy.

For investors, this transformation changes the nature of opportunity in the region, Lemand noted.

“Digital assets in the UAE are moving from speculative plays to investable, regulated asset classes. Tokenised funds, real-world assets, and compliant stablecoin infrastructure are becoming the new frontier,” he added.

Lemand pointed out that the UAE is quietly building the bridge between traditional finance and the tokenised world, and that bridge is now open for global capital to cross.

For economic expert Wajdi Makhamreh, the UAE is not just an emerging hub, it is now a proven global leader in digital asset regulation.

From tokenised real estate to blockchain-based Islamic finance and stablecoin-powered payment systems, digital assets are becoming a foundational part of the UAE’s real economy, Makhamreh said.

“This shift is not about hype or speculation, but about building scalable, utility-driven infrastructure that attracts capital, talent, and real use cases. We will see an explosion in real-world asset tokenisation, regulated staking, and stablecoin payment rails,” Makhamreh told Aletihad.

He pointed out that these developments will make the market not only bigger, but more sustainable, diversified, and trusted.

Makhamreh attributes this progress to deliberate, activity-specific regulation by specialised entities such VARA and FSRA. “These regulators issued comprehensive rulebooks covering every layer of digital asset activity, including issuance, custody, trading, lending, staking, and DeFi, without forcing the industry to operate under outdated banking laws.”

“Institutional investors now have a clear path to participate in tokenised funds, structured DeFi, and regulated digital exchanges. The UAE is setting the global benchmark for how to do this right, faster than bigger economies, but without compromising on trust or oversight,” Makhamreh added.