The Middle East and North Africa (MENA) region is rapidly emerging as a key player in the global cryptocurrency market. According to Chainalysis, between July 2023 and June 2024, MENA received $338.7 billion in crypto transactions, accounting for 7.5% of the total global crypto transfers. This positions the region as the 7th largest in the world by transaction volume. The United Arab Emirates (UAE) stands out, attracting over $30 billion in digital assets. More than 74% of young adults aged 25–34 show active interest in cryptocurrency, and 21% plan to trade crypto within the next 12 months, making the UAE a regional leader in youth-driven digital finance, according to The Asset. Analysts from the Mining Grid project predict that by Q4 2025, youth-led crypto accounts will become the largest segment of new adopters in the region. Neighboring countries are following suit with their own initiatives. Saudi Arabia recorded a remarkable 153% growth in youth crypto adoption according to TechAfrica News, leading the GCC in this segment. The growing interest from major investment funds and fintech companies underscores MENA’s strategic role in the global crypto economy. Crypto Transformation Across MENA: From UAE to Saudi Arabia The MENA region demonstrates strong crypto adoption across multiple countries, with hubs like Dubai leading in real estate integration and Saudi Arabia advancing through high-level blockchain discussions. Cross-border agreements and regional initiatives are fostering collaboration, highlighting where crypto innovation is accelerating fastest across the region. Here’s how different MENA regions are driving crypto innovation: 1. Real Estate in the UAE 1. Real Estate in the UAE Recently, RAK Properties in Ras Al Khaimah announced it will accept digital currencies like Bitcoin, Ethereum, and USDT for international property transactions. To make cryptocurrency payments seamless, RAK Properties teamed up with Hubpay, a regional payments platform. Hubpay will convert the digital currencies into UAE dirhams and deposit the equivalent amount directly into the company’s accounts, ensuring both compliance and efficiency. This move reflects a broader national push to normalize digital asset usage, positioning the UAE as a hub for both retail and institutional crypto activity. Analysts and market observers see such initiatives as key drivers for the country’s economic diversification, signaling that blockchain and crypto adoption are becoming integral to the UAE’s growth strategy. Experts expect crypto to emerge as one of the UAE’s leading sectors over the next five years. 2. Tokenization in Bahrain 2. Tokenization in Bahrain Bahrain is positioning itself as a key destination for crypto and investment management firms in the Middle East. The country is currently in talks with over 50 financial services providers, nearly half of which are planning to offer cryptocurrency or investment management services. Bahrain aims to attract global digital asset firms, providing them with a stable and transparent environment to operate. In March 2023, the Central Bank of Bahrain (CBB) revised its Crypto-assets (CRA) Module after consulting industry stakeholders. As part of this, the CBB broadened its regulatory framework to include “Digital Token Offerings.” The updated rules provide stronger safeguards for investors and allow licensed firms to expand their activities beyond standard regulated services, as long as they have CBB approval. I see this approach as a clear demonstration of investor protection, regulatory compliance, and operational transparency. 3. Crypto Developments in Saudi Arabia and the UAE 3. Crypto Developments in Saudi Arabia and the UAE Across the MENA and Central Asian regions, major players in the crypto industry are forging strategic partnerships with governments to accelerate digital asset adoption: Volodymyr Nosov met with HRH Prince Naif bin Abdullah bin Saud bin Abdulaziz AI Saud in Saudi Arabia to explore collaboration in investment, blockchain infrastructure, secure digital banking, and broader financial transformation initiatives. I hope they also discussed crypto registries because then it would be an entirely different level that could take crypto even higher. Brad Garlinghouse has engaged UAE authorities, receiving DFSA approval to offer regulated cryptocurrency payment services in the Dubai International Financial Centre, including stablecoins like RLUSD. These moves highlight a concerted effort across the region to integrate crypto into traditional finance, establish secure and compliant ecosystems. 4. SCA and VARA Partnership in the UAE 4. SCA and VARA Partnership in the UAE The partnership between the Securities and Commodities Authority (SCA) and the Dubai Virtual Assets Regulatory Authority (VARA) is designed to create clarity for virtual asset service providers (VASPs), enabling mutual license recognition while maintaining rigorous compliance standards. This doesn’t mean automatic passporting across emirates, but it does significantly reduce duplication, speed up market entry, and provide a clear regulatory path for both local and international players. For investors and operators, this signals that the UAE is serious about building a transparent, innovation-driven ecosystem where digital assets can thrive safely. By harmonizing oversight, sharing real-time data, and coordinating AML/CFT measures, the country is positioning itself as a global leader in crypto governance, while maintaining trust, security, and international competitiveness. Takeaway Takeaway Looking at MENA today, it’s clear that the region isn’t just following global crypto trends - it’s actively shaping them. From innovative real estate projects to supportive regulatory frameworks and high-level blockchain initiatives, the region is steadily building a digital asset ecosystem that balances innovation with regulation. I see this as a deliberate, expert-led push to make MENA a global benchmark for how traditional finance and crypto can coexist. For investors and innovators, this is not just an opportunity - it’s a glimpse into the future of a transparent, scalable, and regionally integrated crypto economy.

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How MENA Is Shaping the Crypto World - From My Perspective

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