Institutional Investor Sees Major Shift The United Arab Emirates (UAE) is positioned to make crypto its second-biggest sector in the next five years, according to Chase Ergen, board member at DeFi Technologies. He cited the nation’s regulatory clarity, business-friendly policies, and leadership vision as key growth drivers. Ergen noted that while oil remains the UAE’s primary business, blockchain is set to follow as a major economic pillar, potentially accounting for double-digit percentages of GDP. Why the UAE Stands Out The UAE has established itself as a leading global hub for digital assets with: A clear and supportive regulatory framework Attractive tax policies and low crime rates Strong government investments in technology A growing community of crypto executives This combination, Ergen argued, gives the UAE a competitive advantage across the Middle East and Africa (MENA) region. Nation-State Crypto Adoption Accelerates Global adoption of crypto among governments has surged since early 2025. Following U.S. President Donald Trump’s inauguration, Washington unveiled a long-awaited crypto strategy aimed at global leadership. Meanwhile, Pakistan reversed its anti-crypto stance in late 2024, establishing a national Bitcoin reserve and forming a council to build a comprehensive regulatory framework. Sovereign Wealth Funds Increase Exposure Sovereign wealth funds are deepening their role in crypto. The UAE’s Mubadala and Norway’s sovereign wealth fund now hold Bitcoin through ETFs and other vehicles. Norway’s fund, the largest of its kind globally, expanded its Bitcoin exposure by 192% over the past year, according to K33 Research.
