I am betting on Dubai and the United Arab Emirates!

Ruler of Dubai H.H. Sheikh Mohammed bin Rashid Al Maktoum said it best: ‘The future belongs to those who design it”

United Arab Emirates (UAE) is quickly becoming a leading hub for Crypto companies - with its favorable regulatory environment, established financial sector, and commitment to innovation, the country is attracting the brightest minds from around the world.

My relationship with Dubai and the UAE began back in 2017 when I was fortunate to meet Saqr Ereiqat, today the CEO of TDMM.

Saqr and I were participating in a small panel discussion on the topic of crypto-currencies, at a large and established wealth management conference.

I was invited to speak as a founder of Lykke, at the time the largest Crypto start-up in Switzerland and one of the biggest Crypto players in Europe, while Saqr brought his perspective on UAE Governmental Blockchain efforts as a leading consultant and Blockchain evangelist at IBM.

We could both feel the Crypto-currency buzz at the conference among the big family offices and asset managers, but it was clear that UAE was way behind the leading Crypto hubs such as Hong Kong, Singapore, Zug, New York, London, and others.

At the time I met my dear friend Saqr, it was difficult to imagine that just a few years later, UAE would become the world’s fastest-growing Crypto hub and Dubai ranked 2nd globally as the most attractive city for Crypto start-ups.

Today, the dream of Dubai and Abu Dhabi leading the global Crypto revolution is a reality and UAE’s efforts to attract Crypto companies have already borne fruit.

Crypto Oasis’s Ecosystem Report for 2023 identified 8,650 passionate individuals currently working in more than 1,800 companies in the crypto, Blockchain, Metaverse, and Web3 Ecosystem of the UAE.

Since the early days, the UAE government has taken a proactive approach to attracting Blockchain and crypto companies.

Firstly, in 2016 by launching the “Dubai Blockchain Strategy”, the big goal of improving Government Efficiency, Industry Creation & International Leadership.

Then reinforced this in 2018 by launching the “Emirates Blockchain Strategy 2021”, with the aim of making the country a world leader in Blockchain adoption.

An additional reason for UAE’s attractiveness to crypto companies is its favorable and clear regulatory environment.

DMCC (Dubai Multi Commodities Centre) was the first free zone in the UAE to allow companies to trade in Cryptocurrencies and in 2020 launched the DMCC Crypto Centre, a specialised business hub for Blockchain and Crypto startups.

Dubai International Financial Centre (DIFC), the leading financial center in the Middle East, Africa & South Asia (MEASA) and an independent free-trade zone, has its own regulatory framework for Crypto companies.

Dubai also created a specialized regulator for the Crypto industry, called Virtual Assets Regulatory Authority (VARA), which is in charge of overseeing the regulation, licensing, and governance of virtual assets

These efforts have paid off as some of the world’s leading Crypto companies, such as Binance, Crypto.com, and Bybit, have set up shop in UAE.

The visionary Abu Dhabi regulator ADGM was the world’s first jurisdiction to develop and implement a comprehensive framework and is considered the leading global destination for Crypto activities.

Finally, Abu Dhabi’s tech Ecosystem Hub71 has started a massive $2 bn initiative to fund Web3 and Blockchain technology startups in the UAE.

UAE’s favorable and clear regulatory environment, established financial sector, the commitment by the Government & regulator to innovation, and available funding make it an attractive destination for startups looking to tap into the growing Blockchain market.

Having said all this, there is still a long way to go for the UAE’s Crypto Ecosystem, as certain critical parts of the digital asset Ecosystem are currently missing.

For instance, UAE still lacks dedicated Crypto providers offering banking services and solutions, tailored specifically for the rapidly growing crypto community.

The Crypto industry has an opportunity to engage in a dialogue with the central bank and monetary authorities, to enable the development of the Crypto native banking infrastructure needed to support the rapid growth of our Ecosystem.

As the ruler of Dubai H.H. Sheikh Mohammed bin Rashid Al Maktoum said it best: ‘The future belongs to those who design it” and the Crypto industry is one of the biggest opportunities for the UAE to take the lead in the development of the infrastructure that will support the world’s growth in the coming decades.

We have come a long way, from the early days with a handful of pioneers and entrepreneurs in UAE, believing in the long-term potential and vision of Crypto-currencies and decentralization.

We now have the opportunity to make UAE the global leader in the development of Crypto technologies, aligned with the vision of the country’s leadership.

The current state of the Crypto Ecosystem in the UAE very much reminds me of the development of the Crypto Valley in Switzerland, back in 2015 and 2016, prior to its rapid growth during the 2017 bull market.

Back then, Switzerland as well as missing certain critical pieces of the Crypto infrastructure, such as native Crypto banks, custodians, asset managers, market makers, and others, but it was fascinating to experience that some of the world’s smartest people were coming to Switzerland to build the Crypto Valley Ecosystem.

I am seeing now the same scenario playing out in UAE as the world’s smartest, most passionate, and most driven individuals are coming to Dubai and Abu Dhabi to achieve their goals for the future of the Crypto Ecosystem.

I am proud to call Dubai & UAE my home, and invest the next decade of my life giving my contribution to the rapid growth of the UAE Crypto Ecosystem.

As H.H. Sheikh Ahmed bin Saeed Al Maktoum said once: “Never bet against Dubai - you’ll lose!”, I will echo that by saying that I’m betting on Dubai and the United Arab Emirates!

This article was originally published in "Crypto Oasis Ecosystem Report 2023 Spring Edition". Download the report at the following link.