The United Arab Emirates (UAE) is on track to see cryptocurrency become its second-largest industry within the next five years, according to Chase Ergen, board member of DeFi Technologies, a publicly traded digital asset investment firm.

Ergen highlighted the UAE’s strong regulatory framework, supportive government, and thriving community of industry leaders as the key drivers behind this rapid growth. “They sell oil, that’s their main business. I think their second-biggest business is going to be the blockchain industry in the next five years. This will start to be double-digit parts of the economy,” he said.

The country’s debt-free economy, attractive tax system, low crime rates, and commitment to funneling resources into advanced technologies have cemented its position as the crypto hub of the Middle East and Africa. With global competition heating up among nation-states to lead in digital finance, the UAE has established itself as a frontrunner.

Nation-state adoption of cryptocurrencies accelerated in 2025, spurred in part by the Trump administration’s July release of its long-awaited crypto strategy, positioning the US as a potential leader in the sector. Pakistan also made a dramatic policy shift, overturning its ban on digital assets in late 2024, launching a national Bitcoin reserve, and forming a crypto council to regulate the space.

Sovereign wealth funds are increasingly moving into crypto as well. The UAE’s Mubadala and Norway’s sovereign wealth fund both hold Bitcoin exposure through ETFs and other vehicles. Norway’s fund, the largest of its kind globally, boosted its Bitcoin holdings by 192% over the past year, according to research firm K33.

If current momentum continues, the UAE could soon see blockchain stand shoulder to shoulder with oil as a defining force in its economy.