The United Arab Emirates: A Global Hub for Blockchain and Cryptocurrency Innovation
Shaping the Future of Crypto in the Middle East
The United Arab Emirates (UAE) is rapidly positioning itself as a leading hub for blockchain and cryptocurrency innovation. Industry leaders are witnessing key trends emerge in Shariah-compliant services, dirham-pegged stablecoins, and international talent migration.
Recent events such as the Bitcoin MENA and Abu Dhabi Finance Week have brought together crypto professionals to discuss the future of the industry in the Middle East. Cointelegraph spoke with Blockdaemon’s chief revenue officer, Andrew Vranjes; Core DAO’s head of ecosystem growth, Adam Bendjemil; and MatterFi’s head of business development, Jakub Zurawinski, to gain insights on trends witnessed in the UAE and the Middle East.
A ‘Springboard’ for Crypto Adoption
According to Vranjes, the UAE serves as a launchpad for blockchain projects due to its regulatory clarity compared to other jurisdictions. "Our expectation for this market is that it’s going to move much faster," he said. "This market’s going to leapfrog ahead in global rankings really quickly."
The country has successfully attracted top talent from various regions, including London, India, and the Asia-Pacific region. Vranjes highlighted the influx of talent relocating to the UAE: "When you get the right people, the right companies, and the right regulatory framework, this is the combination for success."
Shariah-Compliant Crypto Services
The demand for Shariah-compliant crypto services is a significant trend in the industry. Islamic finance prohibits interest-based lending, focusing on profit-sharing agreements where lenders and borrowers share investment risks.
Bendjemil emphasized that Shariah compliance is "one of the most important narratives at the moment for the Middle East," not just for Bitcoin (BTC) but also for DeFi. The Core DAO executive said it opens up possibilities for Muslim community members: "Shariah compliance will unlock many possibilities for a lot of people in the Islamic world, and probably beyond that because projects are about to be ethically aligned."
Bendjemil noted that this is a "recurring demand" in the Middle East, with many builders already crafting strategies to comply with Shariah law. In September, Bybit introduced a Shariah-compliant crypto account catering to investors seeking alignment with Islamic law.
Dirham Stablecoins and Making Bitcoin Legal Tender
Zurawinski pointed out the potential impact of dirham-pegged stablecoins on strengthening the UAE’s local payment infrastructure: "It just shows also the focus on the local payment method, which is basically a dirham, unlike the US dollar or Bitcoin being a legal tender."
A stablecoin issuer received an initial nod from the country’s central bank for a potential stablecoin pegged to the UAE dirham in October. Zurawinski said it might take some time for the country to adopt Bitcoin as a recognized means of payment.
However, this doesn’t ignore the fact that the UAE is "setting up an example of how innovation should look like." Magazine:Crypto City: Guide to Dubai Explore more articles like this Subscribe to the Markets Outlook newsletter Get critical insights to spot investment opportunities, mitigate risks, and refine your trading strategies. Delivered every Monday Subscribe By subscribing, you agree to our Terms of Services and Privacy Policy
The UAE is setting a precedent for innovation in the Middle East, with its regulatory clarity and talent migration contributing significantly to the growth of blockchain and cryptocurrency.
Shariah-Compliant Crypto Services: Unlocking New Possibilities
Islamic finance has been gaining traction globally, with Shariah-compliant crypto services becoming increasingly relevant. Blockchain technology offers a decentralized alternative for financial transactions, aligning with Islamic principles.
Decentralized Finance (DeFi) is another area where Shariah compliance is crucial. The concept of profit
