The Middle East, once a cradle of ancient civilizations and global trade, is now emerging as one of the fastest-growing regions in the cryptocurrency landscape. With progressive regulatory frameworks, rising digital adoption, and a young, tech-savvy population, countries across the region are rapidly embracing blockchain technology and digital assets. This comprehensive analysis explores the evolving crypto ecosystem in key Middle Eastern nations — including the UAE, Saudi Arabia, Egypt, Morocco, Algeria, and Jordan — shedding light on user behavior, market dynamics, platform preferences, and future growth potential.
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Market Overview: A Region on the Rise
Regional Snapshot
The Middle East comprises 18 countries, but crypto activity is concentrated in a few key markets. This report focuses on six nations — the United Arab Emirates (UAE), Saudi Arabia, Egypt, Morocco, Algeria, and Jordan — based on their economic influence and blockchain adoption levels.
While the region’s share of global crypto inflows was approximately 7.2% in 2023 (combined with North Africa), its growth trajectory stands out. According to Chainalysis’ 2023 Global Crypto Adoption Index, several Middle Eastern countries rank highly:
- Morocco – #20
- Egypt – #35
- Algeria – #47
- Saudi Arabia – #57
- Jordan – #66
- UAE – #78
These rankings reflect increasing grassroots adoption, particularly in peer-to-peer (P2P) transactions and on-chain retail activity.
Notably, there's a stark contrast in decentralized finance (DeFi) adoption across the region. Countries like Saudi Arabia and the UAE show stronger engagement with DeFi platforms compared to their centralized exchange (CEX) usage, while Egypt, Algeria, and Jordan remain more reliant on centralized services. Morocco stands out for balanced adoption across all five metrics measured by Chainalysis.
Interestingly, the UAE ranks outside the top 100 in P2P transaction volume, suggesting users have access to efficient fiat on-ramps through regulated channels rather than relying on informal peer networks.
Regulatory Landscape: From Restriction to Innovation
Crypto regulation in the Middle East varies significantly by country, falling into three main categories: regulatory-friendly, policy-transitioning, and strictly regulated.
Regulatory-Friendly: The UAE Leads the Way
The UAE has positioned itself as a global hub for blockchain innovation. In March 2022, Dubai introduced Law No. 4 of 2022, establishing the Virtual Assets Regulatory Authority (VARA) — the world’s first dedicated crypto regulator. VARA oversees all virtual asset service providers within Dubai, ensuring compliance, consumer protection, and market integrity.
Beyond regulation, the UAE fosters innovation through free zones like RAK Digital Assets Oasis (RAK DAO), which offer licensing, tax incentives, and legal clarity for crypto businesses. This proactive approach has attracted major exchanges, Web3 startups, and institutional investors.
Policy-Transitioning Nations
Several countries are shifting from skepticism to structured oversight:
- Saudi Arabia: Once cautious about crypto, it appointed a “Crypto Chief” in 2022 to lead digital transformation. The kingdom is investing heavily in Web3 infrastructure and partnered with platforms like The Sandbox to develop metaverse experiences aligned with Vision 2030.
- Egypt: Despite an early religious ruling declaring Bitcoin transactions haram (forbidden), the Central Bank of Egypt (CBE) is drafting legislation to regulate digital assets — signaling a shift toward formalization.
- Jordan: While banks are barred from facilitating crypto transactions, the Central Bank of Jordan (CBJ) encourages exploration of blockchain technology for financial innovation.
- Morocco: Initially banned crypto trading in 2017 but began drafting regulatory frameworks in 2022, with a public consultation launched in early 2023.
Strictly Regulated: Algeria’s Stance
Algeria maintains a hardline position. Its 2018 financial law prohibits the use, possession, or exchange of any virtual currency, citing risks related to money laundering and financial instability.
Cultural and Religious Influences
As predominantly Muslim nations, many Middle Eastern countries evaluate crypto through the lens of Sharia law, which prohibits interest-based lending (riba), gambling (maysir), and speculative excess (gharar). Given the volatility of early crypto markets, initial religious rulings were often negative.
However, as Bitcoin and Ethereum gain institutional legitimacy and stability, some scholars now view them as permissible under certain conditions — especially when used as stores of value or for remittances. The UAE’s push to become a blockchain capital reflects this evolving interpretation.
Market Size and Growth Trends
In February 2023, daily active users (DAU) on centralized exchanges in the Middle East stood at around 330,000. By February 2024, that number had grown to approximately 500,000, driven by increased awareness, improved access, and broader market bullishness following events like the approval of U.S. spot Bitcoin ETFs.
User growth varied across countries:
- Morocco: +148% year-over-year
- UAE & Egypt: ~+70%
- Saudi Arabia: Flat growth (likely due to earlier adoption peak)
Despite having populations roughly one-third that of Saudi Arabia or Egypt, both UAE and Morocco achieved comparable DAU figures — indicating higher per-capita adoption rates and stronger engagement with digital finance tools.
User Behavior and Preferences
Trading Habits Across Key Markets
Middle Eastern users exhibit distinct behavioral patterns shaped by economic conditions, financial inclusion levels, and cultural context.
General User Profile
- High reliance on centralized exchanges (CEX) over decentralized alternatives
- Frequent use of crypto for cross-border remittances, especially in underbanked regions
- Strong interest in Meme coins and trending assets
- Growing attention to traditional finance developments (e.g., BlackRock’s BTC ETF)
Country-Specific Insights
- UAE: 72% of crypto users hold Bitcoin (“digital gold”), while ETH is also popular. Users are active in DeFi, RWA projects, AI-driven protocols, and cross-chain bridges.
- Saudi Arabia: Institutional interest is rising. Users focus on BTC/ETH spot holdings and show strong engagement with NFTs and metaverse platforms like The Sandbox.
- Egypt: With only 2.95% crypto ownership (as of 2022), adoption remains low. However, unbanked users leverage crypto for domestic and international transfers amid Egyptian pound depreciation.
Countries like Algeria, Morocco, and Jordan lack sufficient data for detailed profiling but appear to follow regional trends.
Popular Projects and Emerging Trends
Top Platforms by Country (Q1 2024)
| Country | DEX | NFT | Web3 Tasks | Gaming |
|---|---|---|---|---|
| UAE | Uniswap, PancakeSwap | OpenSea, MagicEden | Galxe | — |
| Saudi Arabia | Uniswap, PancakeSwap | OpenSea | Galxe, Zealy | Sandbox |
| Egypt | PancakeSwap | OpenSea | Galxe | Sweat Economy, Pixels |
| Morocco | Jupiter | OpenSea | — | Sweat Economy |
Hot Topics in Search Trends (Jan–Apr 2024)
- BOME (Book of Meme): Solana-based Meme coin frenzy captured widespread attention. Its rapid listing on major exchanges reinforced CEX dominance.
- RWA & ONDO: BlackRock’s entry into tokenized real-world assets reignited interest in RWA. ONDO emerged as the most searched RWA token in the region.
- Device Mining & DePIN Projects: High interest in Grass (data-sharing), ICE (mobile mining), and Pi Network indicates demand for accessible earning models.
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Platform Ecosystem: CEX vs DEX vs Wallets
Centralized Exchanges (CEX)
Traffic to global CEXs rose sharply over the past year:
- UAE: +60% UV growth
- Morocco: +71% UV growth
- Egypt: +25% UV growth
Despite high traffic volumes — between 700k–1M monthly unique visitors across top markets — local exchanges like Rain and M2 fail to crack the top 10. This reflects users' preference for platforms offering deeper liquidity, wider asset selection, and seamless fiat integration.
Decentralized Exchanges (DEX)
DEX usage is growing steadily:
- Primary chains: Ethereum, BSC, Solana
- Leading platforms: Uniswap, PancakeSwap, Raydium, Jupiter
- Aggregators like 1inch are gaining traction
User acquisition channels include direct visits (~50%), Google search (~30%), social media links (~15%), and referrals from CoinMarketCap/CoinGecko.
Notable differences:
- UAE users favor aggregators
- Saudi users engage across multiple chains
- Egyptian users lean toward Cosmos via Astroport
- Moroccan users focus on Solana via Jupiter
Web3 Wallets
Top 5 wallets by downloads (Q1 2024):
- Trust Wallet
- MetaMask
- Phantom
- Coinbase Wallet
- Bitget Wallet
Phantom’s rise correlates with Solana’s resurgence. Rumors of a potential airdrop have boosted wallet adoption among yield-seeking users.
Bitget Wallet gained ground through fast iteration — supporting 90+ chains, offering smart swap routing, NFT marketplace functionality (accepting any crypto for NFTs), and active reward campaigns like BWB points and airdrops.
Frequently Asked Questions
Q: Which country in the Middle East is most crypto-friendly?
A: The UAE leads with clear regulations via VARA and supportive policies in Dubai and Abu Dhabi.
Q: Do Muslims allow cryptocurrency under Islamic law?
A: Views vary. While early rulings were cautious due to volatility and speculation concerns, many now accept Bitcoin as a store of value if used responsibly.
Q: Are decentralized exchanges popular in the region?
A: Yes — especially Uniswap and PancakeSwap — though CEX usage remains dominant overall.
Q: Why is ONDO trending in Middle Eastern searches?
A: BlackRock’s move into tokenized assets sparked RWA interest. ONDO became a benchmark for this narrative.
Q: How do people buy crypto without bank accounts?
A: Many rely on P2P platforms or mobile-based wallets that support cash deposits or prepaid cards.
Q: What role does remittance play in crypto adoption?
A: Critical — especially in Egypt and Jordan — where workers use crypto to send money home faster and cheaper than traditional methods.
Future Outlook: Five Predictions for 2024–2025
- The UAE will solidify its role as the region’s crypto hub — attracting talent, capital, and global projects.
- Daily active users in the Middle East could reach 700,000 by end of 2024, driven by rising awareness and market recovery.
- Engagement with DeFi, airdrops, and on-chain activities will surge — turning terms like “airdrop farming” into mainstream social media topics.
- Meme coin trading will intensify, with DEXs on Solana and BSC serving as primary venues for speculation.
- Multi-chain wallets with built-in aggregation features will see increased adoption due to ease of use and enhanced yield opportunities.
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