The United Arab Emirates is poised to see its crypto sector evolve into the country’s second-biggest industry after oil within the next five years, according to Chase Ergen, board member at DeFi Technologies.
Ergen praised the UAE’s leadership, legal clarity, and strong community ties, noting that the nation has built an unmatched environment for blockchain adoption. “They sell oil, that’s their main business,” he said. “I think their second-biggest business is going to be the blockchain industry in the next five years. This will start to be double-digit parts of the economy.”
The UAE’s appeal lies in its forward-looking regulatory framework, debt-free economy, favorable tax policies, and reputation for safety and stability. These factors have attracted top executives and major blockchain projects, cementing the UAE as the leading crypto hub across the Middle East and Africa.
Global Nation-State Adoption Gains Momentum
The UAE’s rise comes as more governments worldwide embrace digital assets in 2025. The Trump administration in the U.S. published its long-awaited crypto roadmap in July, positioning America as a leader in digital finance. Meanwhile, Pakistan abandoned its ban on cryptocurrencies in late 2024, later announcing a national Bitcoin reserve and forming a crypto council to guide policy.
Sovereign wealth funds have also joined the wave. Mubadala, the UAE’s state investment arm, and Norway’s sovereign wealth fund both hold Bitcoin exposure through ETFs and other vehicles. Research firm K33 reports Norway’s fund increased its Bitcoin allocation by nearly 200% in the past year, signaling growing institutional confidence.
A Regional and Global Hub
With policy support, institutional investment, and an influx of global crypto firms, the UAE has created a competitive moat as it seeks to dominate the next era of digital finance. If projections hold true, blockchain could soon stand alongside oil as one of the nation’s defining industries.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
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