Bitcoin News Today: UAE Aims to Make Crypto Second-Largest Economic Sector in 5 Years

The United Arab Emirates is on track to make cryptocurrency its second-largest economic sector within the next five years, according to Chase Ergen, board member at DeFi Technologies. Ergen emphasized the nation’s favorable regulatory environment, business-friendly policies, and leadership vision as key factors driving this transformation. While oil will continue to be the UAE’s primary economic pillar, Ergen forecasts that blockchain technology could soon account for double-digit percentages of the country’s GDP [1].

The UAE’s emergence as a digital asset hub is attributed to its clear regulatory framework, attractive tax policies, low crime rates, and government-led investments in technology. These factors have helped create a competitive edge across the Middle East and Africa (MENA) region. Ergen highlighted that the UAE has successfully cultivated a growing community of crypto executives, further reinforcing its position as a leader in the global crypto space [1].

The nation-state adoption of crypto is also accelerating globally. Following the 2025 U.S. presidential inauguration, the U.S. government introduced a comprehensive crypto strategy aimed at securing global leadership in the sector. In late 2024, Pakistan reversed its previously restrictive stance on crypto, establishing a national Bitcoin reserve and setting up a council to develop a regulatory framework. These developments indicate a broader trend of geopolitical recognition of digital assets [1].

At the institutional level, sovereign wealth funds are increasing their exposure to crypto. The UAE’s Mubadala and Norway’s sovereign wealth fund have both expanded their holdings in Bitcoin through ETFs and other investment vehicles. According to K33 Research, Norway’s sovereign wealth fund, the largest of its kind globally, increased its Bitcoin exposure by 192% over the past year [1].

Experts and analysts have also pointed to the UAE’s growing economic diversification strategy, which includes integrating technology into its economic framework. Reports suggest that the country is aligning with global innovation trends, with a strong focus on digital finance and technological sovereignty. The UAE’s forward-looking policies are fostering an environment where crypto can flourish, supported by institutional interest and regulatory clarity [1][2].

It is important to note that these developments are based on forecasts and expert opinions. While analysts project that crypto may become the UAE’s second-largest industry within five years, these remain predictions and should not be conflated with current economic data [3].

The broader technology and startup ecosystem in the MENA region is also showing signs of rapid growth. A separate report noted a 1,411% increase in startup funding in the region in July 2025, reaching $783 million. While not directly related to crypto, this trend reflects a growing regional appetite for tech innovation and investment [5].

The UAE’s alignment of regulatory flexibility with market demand is expected to accelerate the pace of adoption and investment in the crypto sector, positioning the country for a transformative period in its economic structure. As global interest in digital assets continues to grow, the UAE is well-positioned to lead the charge in the Middle East and beyond [1][2].

Source:

[1] BTC Pulse, https://btc-pulse.com/crypto-set-to-become-uaes-second-biggest-industry-in-5-years-says-investor/

[2] advfn.com, https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96652902/crypto-to-become-uae-s-second-biggest-sector-in-5

[3] Menafn, https://menafn.com/1109936996/Crypto-Set-To-Surge-As-UAEs-Top-Industry-By-2028-Says-Expert

[5] Arab News, https://www.arabnews.com/node/2612029/business-economy