The UAE attracted more than $30 billion in cryptocurrency investments last year, data from forex.com showed.

Over the past decade, the UAE has become a haven for retail and institutional investors seeking to expand their crypto portfolios. Ranked among the top 10 countries for cryptocurrency adoption in 2025, the country’s strategic leadership in regulation and innovation not only embraces the digital asset revolution, but actively shapes its trajectory.

With a proactive regulatory framework, the UAE also presents investors with a balance between innovation and security. Key zones like the Abu Dhabi Global Market (ADGM), Dubai Multi Commodities Centre (DMCC), and Ras Al Khaimah Digital Assets Oasis (RAK) are dedicated to supporting crypto businesses with compliance, licensing, and growth incentives, offering essential resources for success, including grants, advanced technology, and incubation services. Oversight by the Financial Services Regulatory Authority (FSRA) and the Securities and Commodities Authority (SCA) ensures market stability and investor protection. Additionally, the UAE’s tax-free environment for crypto gains makes it a magnet for both institutional and retail investors worldwide.

“All these factors combined together, have enabled Dubai and the UAE to cement their position as global leaders in the cryptocurrency industry, attracting over $30 billion in crypto investments between June 2023 and June 2024, according to Economy Middle East”, says Razan Hilal, Market Analyst, CMT at forex.com.

At the beginning of 2025, the UAE has integrated cryptocurrency payment systems into key industries such as real estate, hospitality, travel, telecommunications, entertainment, retail, and e-commerce. This further poises the country to lead the global crypto space in 2025, a year which is expected to mark a defining moment for the cryptocurrency industry.

On a global level, and under President-elect Donald Trump, the United States is planning to implement favourable regulations, potentially reshaping the global crypto landscape. Bitcoin, the market leader, peaked at $109,588 on Monday, driven by optimism surrounding US regulatory shifts. “However, the market has recently shown signs of consolidation, suggesting a potential recharge before further significant movements,” Hilal said.

Historically, the crypto market was viewed as highly risky due to irregular volatility, security concerns, and limited liquidity. Hilal adds: ‘‘However, with anticipated favourable regulations and increased liquidity inflows in 2025, the market is expected to stabilise, reducing price spikes and fostering greater investor confidence. This improved environment is likely to drive increased allocations to cryptocurrency portfolios, encompassing both direct investments and derivatives like options as effective tools for risk hedging. Nevertheless, investors and stakeholders must remain cautious, as the crypto market remains susceptible to rapid and unpredictable changes.”

Bitcoin price reached a new all-time high (ATH) of $109,588 on Monday but quickly slipped 6.68 per cent from that level, closing at $102,260. However, the next day, it found support around its key $100K level and rose 3.8 per cent. At the time of writing on Wednesday, it hovers around $105,000.

“If BTC continues its upward momentum and breaks above its all-time-high, it could extend the rally above the $125K mark, calculated by the 141.40 per cent Fibonacci extension level (drawn from the November 4 low of $66,835 to Monday’s ATH of $109,588) at $127,287,” Manish Chhetri, an analysts at FXStreet, wrote.

Source:https://www.khaleejtimes.com/business/cryptocurrency/the-uae-attracts-more-than-30-billion-in-crypto-investments-in-one-year