UAE crypto market poised for surge

Revenue expected to grow by 7.89% annually to reach $395.8 million in 2028

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Published: Wed 3 Jul 2024, 1:32 PM

Last updated: Wed 3 Jul 2024, 3:23 PM

Despite the global market’s fluctuating nature, revenue in the UAE’s crypto sector is expected to grow by 7.89 per cent annually to reach $395.8 million by 2028, up from $292.1 million this year, a study showed on Wednesday.

With a 10 per cent rate in the Middle East, crypto adoption is low but recent data indicates this trend won’t persist; according to Bitget Research , the average daily number of crypto traders in the region exceeded 500,000 in February, reflecting a 51 per cent YoY (Year-over-Year) growth from 2023. During this period, the UAE has elevated regional growth by leading crypto adoption per capita with a 68 per cent 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 governmental-led effort has been reinforced by various mandates, across several industries. Crypto has increasingly become a part of this journey, with the UAE recognizing 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.

Bitpanda was founded in Vienna in 2014 and is one of Europe's leading crypto brokers. With a selection of over 2,800 digital assets, including more than 400 crypto assets and numerous stocks, ETFs, precious metals and commodities, the Austrian fintech unicorn offers 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 nation’s pioneering efforts to embrace cryptocurrency is evident. According to Bitpanda, this is directly correlated to rising institutional adoption, as banks and financial services are actively pursuing ways to provide virtual asset services to their clients while also aligning with key priorities of the UAE. After achieving a record-setting revenue of DH400 million in Q1 of 2024, Bitpanda has since reached a new milestone of 5 million total users as of Q2 while also securing DMCC licensing of its own. The company, as Bitpanda MENA, is now set to aid the UAE’s diversification efforts; nurturing its digitisation efforts by unlocking digital assets for millions of investors.