The United Arab Emirates’ cryptocurrency economy grew by 32 per cent to $104.8 billion (Dh384.6 billion) in the year to June 2026, strengthening its position as one of the Middle East’s leading digital asset markets, according to a report by blockchain analytics firm Chainalysis.
The expansion brings the UAE’s crypto market to around 73 per cent of the size of Türkiye’s, currently the largest in the Middle East and North Africa (Mena). Chainalysis said the UAE could overtake Türkiye during the 2027 reporting period if current growth trends continue.
The report covers activity between July 2025 and June 2026. Across Mena, cryptocurrency activity remained broadly flat, with the regional economy valued at $443.3 billion, compared with $449.6 billion a year earlier. Sixteen of the 24 markets with measurable data recorded growth.
However, excluding the UAE, the rest of the region’s crypto economy contracted by 8.6 per cent. The overall regional decline was 1.4 per cent, as growth in the UAE offset much of the weakness elsewhere. Türkiye and the UAE together accounted for 56 per cent of the regional total, but their markets moved in opposite directions.
Chainalysis said the global cryptocurrency bear market cut total market capitalisation by half in 2026, although on-chain economic activity remained relatively resilient. Regional disruptions, particularly the conflict involving Iran that began on February 28, also shaped market performance across Mena.
Institutions drive UAE expansion
Institutional activity accounted for much of the UAE’s growth. The country’s services sector generated $102.3 billion in crypto-related activity, increasing by 29 per cent, according to the report.
Inflows to centralised exchanges rose 22 per cent to $55 billion, while institutional platforms, including custodians and market-makers, recorded a 75 per cent increase to $11.7 billion. Decentralised finance exchanges attracted more than $31 billion in inflows, representing annual growth of 31 per cent.
Henri Arslanian, co-founder of Nine Blocks Capital Management, described the UAE and the wider Mena region as an increasingly important base for cryptocurrency companies operating internationally.
Arslanian, whose firm was the first crypto hedge fund licensed by Dubai’s Virtual Assets Regulatory Authority (VARA), said the willingness of regulators to issue licences had reduced the career risks faced by corporate executives entering the digital asset sector.
The report was published amid wider concerns about cryptocurrency security following a breach involving Binance, the world’s largest cryptocurrency exchange. The incident was estimated to have caused an impact of $6.3 billion, making it the largest crypto heist on record.
Binance said it had worked with partners to freeze affected assets and had located around $3 billion. Co-founder Yi He said the company would cover all hacking losses, although no update was provided on the remaining $3.3 billion.
