The UAE’s crypto economy grew 32 per cent to $104.8 billion (Dh384.6 billion) in the year to June 2026, according to a new report by blockchain analytics firm Chainalysis.
The growth leaves the UAE at about 73 per cent of the size of Türkiye’s market, currently the largest in the Middle East and North Africa (Mena). On current trajectories, the report says, the UAE is on pace to overtake Türkiye in the 2027 reporting period.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
The report covers July 2025 to June 2026. Excluding the UAE, the rest of Mena’s crypto economy contracted 8.6 per cent, against a regional decline of 1.4 per cent.
Mena’s crypto economy was essentially flat at $443.3 billion, down from $449.6 billion a year earlier and in line with the global decline. Sixteen of the 24 markets with measurable data grew. The UAE and Türkiye, which together make up 56 per cent of the regional total, moved in opposite directions and largely cancelled each other out.
Chainalysis said the 2026 bear market halved crypto’s total market capitalisation worldwide but barely dented on-chain economic activity. What shaped Mena, it said, were regional disruptions layered on top, chiefly the Iran conflict that began on February 28, 2026.
The report comes as a security breach at Binance, the world’s largest cryptocurrency exchange, has resulted in an estimated $6.3 billion impact, the biggest crypto heist ever.
Binance said it had worked with partners to freeze the affected assets, with about $3 billion located so far. It gave no update on the status of the remaining $3.3 billion, though Binance co-founder Yi He said the company would cover “all hacking losses”.
Institutions lead the growth
According to Chainalysis, the UAE’s $102.3 billion services sector accounted for most of the growth, expanding 29 per cent. Centralised exchange inflows rose 22 per cent to $55 billion. Institutional platforms, including custodians and market-makers, grew 75 per cent to $11.7 billion. Decentralised finance exchanges recorded more than $31 billion in inflows, up 31 per cent.
“Outside of the US, Mena and in particular the UAE has become the main hub for crypto firms’ global operations,” Henri Arslanian, co-founder of Nine Blocks Capital Management, the first crypto hedge fund licensed by Dubai’s virtual assets regulator VARA, was quoted as saying in Chainalysis report.
He credited regulators’ readiness to issue licences with reducing “career risk” for corporate executives dealing with digital assets.
Source: Khaleej Times