The Middle East, a region steeped in ancient civilization and cultural richness, is rapidly emerging as a dynamic force in the global cryptocurrency landscape. Once known primarily for oil and trade, Middle Eastern nations are now embracing digital innovation with strategic vision and regulatory foresight. From Dubai’s blockchain ambitions to Saudi Arabia’s Web3 investments, the region is witnessing a surge in crypto adoption driven by economic diversification goals, youthful populations, and evolving financial infrastructure.
This comprehensive analysis explores the current state of the Middle East’s crypto market, examining regulatory trends, user behaviors, platform preferences, and future growth trajectories. Backed by data and on-the-ground insights, this report offers valuable perspectives for investors, Web3 projects, and anyone interested in one of the fastest-growing crypto regions in the world.
Market Overview: Rapid Growth Amid Regulatory Evolution
Regional Landscape and Adoption Trends
The Middle East comprises 18 countries, but six stand out in terms of crypto activity: United Arab Emirates (UAE), Saudi Arabia, Egypt, Morocco, Algeria, and Jordan. While the region's total crypto transaction volume accounted for approximately 7.2% of global inflows in 2023, its growth trajectory is among the steepest worldwide.
According to Chainalysis’ 2023 Global Crypto Adoption Index, several Middle Eastern nations rank impressively:
- Morocco: #20
- Egypt: #35
- Algeria: #47
- Saudi Arabia: #57
- Jordan: #66
- UAE: #78
Notably, these rankings reflect a nuanced adoption pattern. Countries like Saudi Arabia and the UAE show stronger engagement with decentralized finance (DeFi) applications compared to centralized platforms, while Egypt, Algeria, and Jordan exhibit higher reliance on centralized exchanges (CEXs), indicating varying levels of technical familiarity and trust in traditional financial interfaces.
👉 Discover how emerging markets are reshaping crypto adoption trends in 2025.
Regulatory Frameworks: From Restriction to Embrace
Crypto regulation across the Middle East reflects a spectrum of approaches, broadly categorized into three models:
Regulatory-Friendly: United Arab Emirates
The UAE has positioned itself as a global hub for blockchain innovation. Key developments include:
- Establishment of the Virtual Assets Regulatory Authority (VARA) in Dubai under Law No. 4 of 2022.
- Supportive financial zones like RAK DAO, attracting crypto startups and institutional players.
- Clear licensing frameworks for virtual asset service providers (VASPs).
This proactive stance has made the UAE one of the most crypto-friendly jurisdictions globally.
Policy-Transitioning Nations
Countries shifting from skepticism to structured oversight include:
- Saudi Arabia: Once cautious about Bitcoin, it now appoints a “Crypto Chief” at its central bank and explores partnerships with metaverse platforms like The Sandbox.
- Egypt: While religious authorities declared Bitcoin transactions haram in 2018, the Central Bank of Egypt (CBE) began drafting regulatory frameworks by 2019.
- Jordan: Despite banking restrictions on crypto transactions, the Central Bank of Jordan (CBJ) encourages exploration of blockchain technology within compliance boundaries.
- Morocco: Banned crypto trading in 2017 but started drafting a regulatory bill by 2022, signaling a policy shift.
Strictly Regulated: Algeria
Algeria maintains a hardline stance under its 2018 finance law, prohibiting the use, purchase, or possession of cryptocurrencies due to concerns over monetary sovereignty and financial stability.
Cultural and Religious Influences on Crypto Perception
As predominantly Muslim nations, many Middle Eastern countries assess crypto through the lens of Sharia law, which prohibits:
- Interest-based transactions (riba)
- Speculative gambling (maysir)
- Uncertainty or excessive risk (gharar)
Given cryptocurrency’s historical volatility, early religious rulings were often restrictive. However, as markets mature and assets like Bitcoin gain institutional legitimacy, attitudes are shifting. The UAE’s push to become a blockchain innovation center exemplifies how modern interpretations are enabling technological progress within Islamic ethical frameworks.
Market Size and User Growth Dynamics
In February 2023, daily active users (DAU) on centralized crypto exchanges in the Middle East stood at around 330,000. By February 2024, that number had grown to approximately 500,000, reflecting strong momentum fueled by rising awareness and improved access.
Key observations:
- Despite having smaller populations, UAE and Morocco report DAU figures comparable to larger nations like Saudi Arabia and Egypt, suggesting higher per-capita adoption rates.
- Morocco led year-over-year growth with a staggering 148% increase, followed by UAE and Egypt at ~70%.
- Saudi Arabia’s flat growth in early 2024 may indicate it has passed its initial surge phase—consistent with its status as the fastest-growing crypto market globally between 2022 and 2023.
This growth is not just quantitative; it reflects deepening engagement across investment types, platforms, and use cases.
User Behavior and Investment Preferences
Trading Habits Across Key Markets
Middle Eastern users display distinct behavioral patterns shaped by local economic conditions and digital literacy.
United Arab Emirates
- 34% identify as active traders; 29% view crypto as a preferred store of value.
- BTC dominates portfolios (72% ownership rate), seen as “digital gold.”
- High familiarity with DEXs, cross-chain bridges, and emerging narratives like RWA and AI.
- Active participation in NFTs and metaverse ecosystems.
Saudi Arabia
- Institutional interest in BTC and ETH is rising.
- Strong engagement with NFTs and virtual worlds (e.g., collaboration with The Sandbox).
- Lower DEX usage than global average but growing curiosity about DeFi tools.
Egypt
- Only 2.95% of Egyptians have held crypto (as of 2022), but usage is rising.
- BTC primarily used as a hedge against rapid fiat depreciation.
- Over two-thirds lack traditional bank accounts—many use crypto for domestic and international remittances.
Morocco, Algeria, Jordan
Limited data prevents detailed profiling, though trends suggest cautious exploration of established assets via CEXs.
Popular Sectors and Projects in Focus
Google search trends from January to April 2024 reveal key areas capturing regional attention:
1. Meme Coins (e.g., BOME)
Solana-based meme coins generated significant buzz in Q1 2024. BOOK OF MEME (BOME), created by artist Darkfarm, saw over $250 million in 24-hour trading volume post-launch. Its rapid listing on major exchanges underscores the region’s preference for top-tier CEXs over decentralized platforms for speculative plays.
Interestingly, SLERF—a similarly hyped token—did not appear in regional search rankings, reinforcing that most trading occurs on centralized venues.
2. Real World Assets (RWA) – ONDO Leading the Charge
BlackRock’s entry into tokenized funds revitalized interest in RWA. While "RWA" itself is a high-volume search term across the Middle East, only ONDO emerged as a top-trending token—mirroring its popularity in Western Europe. This suggests ONDO may be becoming the flagship asset in the RWA narrative.
3. Device & Mobile Mining Tokens (ICE, Grass, PI)
There is notable enthusiasm for accessible mining models:
- Grass: A pre-token project offering internet-sharing incentives.
- ICE: Recently launched mobile mining and Layer 1 solution.
- Pi Network (PI): An early mobile mining initiative dating back to 2018.
These projects appeal to users seeking low-barrier entry points into earning crypto.
Social Media and Community Engagement
Crypto discourse in the Middle East thrives primarily on:
- Twitter (X): Widely used for real-time updates and influencer engagement.
- YouTube: Popular for educational content and long-form analysis.
Telegram sees limited use compared to other regions. Content is mostly in Arabic, though English-language material reaches bilingual audiences.
Saudi Arabia, Egypt, and UAE lead content creation with active discussions around trending altcoins (e.g., ENA), exchange promotions, and profit-sharing posts. Smaller markets like Morocco and Jordan largely consume content produced in these hubs.
Platform Competition: Where Users Trade and Store Crypto
Centralized Exchanges (CEXs)
Over the past year, CEX traffic across the Middle East has trended upward:
- UAE: +60% YoY
- Morocco: +71% YoY
- Egypt: +25% YoY
Despite population differences, monthly unique visitors (UV) to CEXs range between 700K–1M across UAE, Saudi Arabia, Egypt, and Morocco.
Local platforms like Rain and M2 remain outside the top 10 in traffic—overshadowed by global players offering deeper liquidity, broader asset selection, and localized fiat gateways.
👉 See how top exchanges are adapting to regional demand in high-growth markets.
Decentralized Exchanges (DEXs)
DEX usage centers on leading protocols across major blockchains:
- Uniswap (Ethereum)
- PancakeSwap (BSC)
- Raydium (Solana)
- Aggregators like 1inch and Jupiter
User acquisition paths include direct visits (~50%), Google searches (~30%), social media referrals (~15%), and navigation from price trackers like CoinGecko or CoinMarketCap.
Country-specific insights:
- UAE: Prefers aggregators; high engagement with ETH, BSC, Solana.
- Saudi Arabia: Balanced usage across Uniswap, PancakeSwap, Raydium.
- Egypt: Favors PancakeSwap; notable activity on Cosmos via Astroport.
- Morocco: Leans toward Jupiter; strong focus on Solana ecosystem.
Wallet Preferences
Top five wallets used in the Middle East:
- Trust Wallet – Simple interface; early mover advantage.
- MetaMask – Dominant EVM wallet; widely supported.
- Phantom – Native Solana wallet; growing amid ecosystem boom.
- Coinbase Wallet – Trusted brand association despite no local exchange access.
- Bitget Wallet – Fast iteration; supports 90+ chains; innovative swap algorithms; strong NFT marketplace features.
Phantom’s rise is partly fueled by rumors of an upcoming token airdrop—a common motivator across emerging markets.
Future Outlook: Five Predictions for 2024–2025
Based on current trends, Bitget Research forecasts:
- The UAE will solidify its role as the region’s crypto hub—attracting talent, capital, and global attention.
- Daily active users in the region will grow from 500K in early 2024 to an estimated 700K by year-end.
- Engagement with on-chain activities such as airdrops and DeFi mining will surge—driving broader DeFi literacy.
- Meme coin speculation will remain strong, with DEXs on major chains serving as primary trading venues.
- Multi-chain wallets with built-in aggregation tools will gain increasing favor among tech-savvy users.
👉 Stay ahead of regional trends shaping tomorrow’s crypto leaders.
Frequently Asked Questions (FAQ)
Q: Is cryptocurrency legal in most Middle Eastern countries?
A: Regulations vary widely. The UAE has fully embraced crypto with clear regulations. Saudi Arabia and Morocco are transitioning toward regulated frameworks. Algeria maintains a ban. Always verify local laws before engaging in crypto activities.
Q: Why are meme coins so popular in the Middle East?
A: Meme coins offer fast-moving opportunities ideal for retail traders. Combined with social media hype and listings on major exchanges accessible to Middle Eastern users, they attract speculative interest similar to global trends.
Q: How do economic conditions influence crypto use in the region?
A: In countries like Egypt facing currency devaluation and limited banking access, crypto serves both as a savings tool and a remittance channel—highlighting its utility beyond speculation.
Q: Are decentralized exchanges widely used?
A: While CEXs dominate overall usage, DEX adoption is rising—especially among users familiar with Solana, Ethereum, or Binance Smart Chain ecosystems.
Q: Which wallet should I use if I’m based in the Middle East?
A: For simplicity and broad support: Trust Wallet or MetaMask. For Solana-focused users: Phantom. For advanced traders wanting multi-chain swaps: Bitget Wallet or 1inch.
Q: Will more countries in the region adopt favorable crypto policies?
A: Yes—driven by economic diversification goals (e.g., Saudi Vision 2030) and regional competition for tech investment, more nations are expected to introduce balanced regulatory frameworks by 2025.