For some time now, Dubai has had a positive and forward-looking outlook towards blockchain and cryptocurrency. The city has been making strides in the sector every year, and 2024 proved to be rather transformative.

Way back in 2018, Dubai established its Dubai Blockchain Centre, to bring together developers, innovators, investors, thought leaders, and educators. Since its inception, the centre has aimed to revolutionise the world’s digital infrastructure with blockchain technology and drive sectoral innovation on a global scale.

From regulatory advances to increasing institutional interest and market growth, Dubai and the UAE are setting global benchmarks for the blockchain community.

Walid BenOthman, Managing Director at Bitpanda, highlights the substantial progress made in institutional adoption. “In 2024, institutional investments accounted for over 60% of cryptocurrency trading volumes, up from 35% in 2021. This underscores the growing acceptance of cryptocurrencies as a legitimate asset class,” he tells The Economic Times.

Looking ahead, BenOthman projects a promising future for blockchain. “The market is expected to grow at a compound annual growth rate (CAGR) of 28.1% from 2024 to 2030, potentially reaching $1,235.71 billion by 2030. Technological advancements increased regulatory clarity, and broader industry adoption will drive this growth. However, regulatory uncertainties and market volatility remain key factors to monitor.”

Crypto investment trends and market dynamics
The dominance of Bitcoin and other established currencies marked the cryptocurrency landscape in 2024. According to BenOthman, this trend was bolstered by the successful launch of spot Bitcoin exchange-traded products (ETPs) in the US and favourable macroeconomic conditions.

As for 2025, he observes, “Investors are expected to focus on established cryptocurrencies like Bitcoin and Ethereum while exploring opportunities in decentralised finance (DeFi) and blockchain-based applications. Regulatory developments like Bitpanda securing the VARA license in the UAE further signal institutional support and market maturity in key regions.”

The global cryptocurrency market is projected to grow from $1.3 billion in 2023 to $1.8 billion by 2030, indicating sustained interest in the sector.

UAE’s pioneering role in blockchain and crypto
Dubai’s proactive approach to blockchain regulation and innovation has positioned the UAE as a regional leader. According to Chainalysis’ Geography of Crypto Report 2024, the UAE saw a 42% year-on-year growth in crypto transactions, receiving $34 billion between July 2023 and June 2024.

This remarkable growth spans both retail and institutional transactions, with small retail transactions surging by over 80% and institutional-sized transfers increasing by 55%. Recognised as the cutting edge of blockchain innovation, DeFi saw an 87% increase in value received by decentralised exchanges (DEXs) in the UAE.

Eric Jardine, Cybercrime Research Lead at Chainalysis, credits this growth to “regulatory innovation, institutional interest, and expanding market activity.” Stablecoins, accounting for 51.3% of all crypto transactions, highlight the UAE’s strategic advantage, particularly given that Dirham is pegged to the US Dollar.
Leading the way in blockchain Applications
Dubai’s embrace of blockchain extends beyond finance, exemplified by initiatives such as the Dubai Customs’ blockchain platform. This platform enhances transparency in commercial operations while fostering collaboration across government entities and the logistics sector.

Sultan Ahmed bin Sulayem, Chairman of the Ports, Customs, and Free Zone Corporation and Group Chairman and Chief Executive Officer, DP World, noted in a news article, “We are proud to launch the new blockchain platform, which represents a quantum leap in enhancing the efficiency of business operations in Dubai.” He emphasised its role in simplifying procedures, expediting customs clearance, and strengthening Dubai’s status as a global trade hub.

By integrating blockchain technology, Dubai Customs has revolutionised data sharing, enabling secure, tamper-proof processes that enhance trust and visibility across the supply chain. This approach not only reduces operational costs but also bolsters efforts to combat fraud and counterfeiting.

A global magnet for Web3 talent and investment
Dubai’s strategic positioning as a blockchain hub also resonates with international markets, particularly India. According to several reports, the city is home to over 90,000 Indian companies registered with Dubai Chambers. GITEX, Dubai’s flagship tech event, saw participation from over 300 Indian startups in 2024, tripling the numbers from the previous year, signalling Dubai’s appeal as a launchpad for Web3 entrepreneurs.

In an earlier statement, Sumit Gupta, CEO of CoinDCX, noted, “A lot of Web3 founders prefer Dubai or Singapore as their hub because they have clarity and certainty around regulations and greater community support. Investors are more comfortable in jurisdictions where there are no last-minute surprises.”

The economic synergy between India and the UAE extends to blockchain and crypto. Trade between the two nations reached $85 billion last year, and both countries are exploring interoperability between their central bank digital currency (CBDC) projects.

These initiatives reflect the growing integration of blockchain into global trade and finance.
Dubai’s proactive vision, technological infrastructure, and investor-friendly policies position it as the go-to destination for blockchain innovation, solidifying its reputation as a global technology hub.

“The UAE’s clear regulatory framework is a significant step towards creating a secure crypto ecosystem,” Jardine added. Collaborative approaches involving public and private sectors, data-sharing initiatives, and advanced tracing tools are essential to mitigate these threats and build trust in the digital economy.

Stablecoins at the forefront of adoption
The Chainalysis report also added Stablecoins emerged as the cornerstone of the UAE’s crypto market in 2024, with usage up by 55% year-on-year (YoY). Arushi Goel, Policy Lead for Middle East & Africa at Chainalysis, attributed this growth to regulatory clarity provided by the Central Bank of the UAE (CBUAE).

“Stablecoins are increasingly used for remittances, e-commerce transactions, and even real estate purchases. The potential introduction of Dirham-backed stablecoins could further transform the financial ecosystem,” she noted in the report.

As blockchain technology, tokenisation, and cryptocurrency become integral to the global financial landscape, Dubai’s forward-thinking policies and regulatory strides in 2024 have laid the groundwork for its global blockchain hub ambition. In her concluding remarks, Goel said that with the groundwork being in place, it will be interesting to observe how industry leaders continue to build on this progress to propel the nation's crypto economy forward.

With these latest developments, Dubai seems poised to expand its influence as a blockchain powerhouse on the global stage.

This article is contributed by Sindhu Kashyap.

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