The United Arab Emirates is leading efforts to turn the Middle East into a major crypto market in the world, with crypto inflows into the country reaching US$34 billion in June 2024, up 42% from a year earlier, according to a new report.

There are now over 500,000 daily crypto traders in the UAE, making it a key player in the global crypto ecosystem, says Mining Grid, a provider of blockchain and bitcoin solutions.

During the same period, the Middle East attracted US$338.7 billion in crypto inflows, marking an 11.73% year-on-year increase and securing its position as the seventh largest crypto market globally.

Over 93% of that volume came from institutional-sized transfers, highlighting a maturing market driven by long-term strategies rather than speculation, the report says.

Youth adoption has become a defining characteristic of the UAE's crypto landscape. With over 74% of young adults aged 25-34 showing active interest in cryptocurrency, and 21% planning to trade crypto within the next 12 months, the country leads regional participation in youth-driven digital finance.

Social platforms including TikTok, WhatsApp, and YouTube have become primary discovery channels for this demographic, fostering a socially connected generation pursuing financial independence through digital assets.

Supportive environment

Growth brings challenges, the report says. Nearly half of young crypto users are concerned about misinformation, opening the door for trusted platforms to lead in education and responsible adoption.

“The UAE’s clear regulations and zero capital gains tax have created the perfect environment for crypto growth. With an engaged and forward-looking population, it’s no surprise the country is now seen as the crypto capital of the Arab world,” says Mining Grid founder and board member Solaiman Al-Rifai.

Regional neighbours are following suit with their own approaches. Saudi Arabia recorded a remarkable 153% growth and leads GCC countries in youth crypto adoption rates.

Oman has taken a sustainability-focused path, investing over US$1.1 billion in green mining infrastructure to position itself as a hub for environmentally conscious crypto mining operations.

"The UAE has created the ideal environment where curiosity meets clarity. We're seeing a new generation that doesn't just want to invest in crypto but wants to understand it, build with it, and lead its next chapter. We’re also witnessing a surge in bitcoin mining, driven by demand for decentralization, transparency, and energy-conscious innovation," says Mining Grid founder and CEO Rami Alsridi.

Bitcoin maintains market dominance while ethereum's ecosystem resilience keeps digital assets in the spotlight, the report says. Stablecoins have become a cornerstone of regional value transfer, now comprising 66% of all on-chain transactions.

The tokenization of real-world assets, including real estate and bonds, is driving new waves of institutional interest across the region, it adds.