The Middle East, a region with a rich and storied history as a cradle of ancient civilizations, is rapidly emerging as one of the most dynamic frontiers in the global cryptocurrency landscape. With progressive regulatory frameworks, rising digital adoption, and a young, tech-savvy population, the region is witnessing an explosive growth in crypto participation—positioning it as one of the fastest-growing crypto markets worldwide.
Backed by deep market research, this report explores the evolving crypto ecosystem across key Middle Eastern nations, including the UAE, Saudi Arabia, Egypt, Morocco, Algeria, and Jordan. From regulatory shifts to user behavior and platform preferences, we provide a comprehensive analysis to help investors, Web3 projects, and institutions better understand and engage with this high-potential market.
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Market Overview: A Region on the Rise
Key Countries in Focus
While the broader Middle East comprises 18 countries, this analysis focuses on six nations showing significant crypto activity: United Arab Emirates (UAE), Saudi Arabia, Egypt, Morocco, Algeria, and Jordan. These countries represent a diverse mix of regulatory approaches, economic structures, and user behaviors—offering valuable insights into regional trends.
Despite not leading in absolute transaction volume, the Middle East and North Africa (MENA) region received approximately 7.2% of global crypto inflows in 2023, according to Chainalysis. More importantly, its adoption growth rate ranks among the highest globally, driven by policy openness and increasing financial digitization.
Chainalysis’ 2023 Global Crypto Adoption Index highlights the region’s rising prominence:
- Morocco: #20
- Egypt: #35
- Algeria: #47
- Saudi Arabia: #57
- Jordan: #66
- UAE: #78
Notably, there are stark differences in how users engage with centralized versus decentralized platforms. For instance:
- Egypt, Algeria, and Jordan show stronger reliance on centralized exchanges (CEX), with lower DeFi engagement.
- Saudi Arabia and UAE rank higher in DeFi usage than in CEX adoption.
- Morocco maintains balanced performance across all five adoption metrics.
Additionally, the UAE’s low P2P transaction ranking suggests robust fiat on-ramps through regulated channels—indicating a maturing financial infrastructure.
Regulatory Landscape and Cultural Influences
Diverse Approaches to Crypto Regulation
Middle Eastern countries vary significantly in their regulatory stances, broadly categorized into three groups: regulatory-friendly, policy-transitioning, and strictly regulated.
Regulatory-Friendly: United Arab Emirates
The UAE stands out as a regional leader in crypto innovation. In March 2022, Dubai enacted Law No. 4 of 2022, establishing the Virtual Assets Regulatory Authority (VARA)—a dedicated body overseeing virtual asset service providers. This move solidified Dubai’s status as a hub for blockchain startups and institutional investors.
Further initiatives include:
- Special economic zones like RAK DAO, offering crypto-friendly legal frameworks.
- Licensing support for exchanges, custodians, and Web3 ventures.
- Strategic partnerships to attract global talent and capital.
These efforts have made the UAE one of the most crypto-welcoming jurisdictions in the world.
Policy-Transitioning Nations
Several countries are shifting from restrictive to more open policies:
- Saudi Arabia: Once cautious about crypto, it now embraces Web3 innovation. The central bank appointed a “Crypto Sheikh” in 2022 to lead digital transformation. Partnerships with platforms like The Sandbox signal interest in metaverse development.
- Egypt: While religious authorities declared Bitcoin transactions haram in 2018, the central bank began drafting crypto regulations by 2019. Digital transformation laws passed in 2020 reflect growing institutional interest.
- Jordan: Though banks are banned from facilitating crypto transactions, regulators encourage blockchain innovation within compliant frameworks.
- Morocco: Initially banned crypto trading in 2017 but started drafting regulatory legislation in 2022, signaling a policy shift.
Strictly Regulated: Algeria
Algeria maintains a hardline stance under its 2018 Finance Law, which prohibits:
- Owning
- Using
- Buying or selling
any form of virtual currency. The law defines cryptocurrencies as unbacked electronic assets—effectively outlawing their use.
Despite these restrictions, underground adoption persists, highlighting demand even in restrictive environments.
Cultural and Religious Considerations
As predominantly Muslim nations, many Middle Eastern countries consider Islamic finance principles when evaluating crypto. Key concerns include:
- Prohibition of riba (interest/usury)
- Avoidance of gharar (excessive uncertainty)
- Rejection of gambling-like speculation
Historically, high market volatility made crypto investments questionable under Sharia law. However, as Bitcoin and Ethereum gain institutional legitimacy and stability, fatwas are evolving. Some scholars now argue that long-term holding of established assets may be permissible.
Moreover, governments like the UAE are actively promoting blockchain as part of national digital strategies—demonstrating alignment between technological progress and cultural values.
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 surged to approximately 500,000, reflecting growing retail and institutional interest—fueled by Bitcoin spot ETF approvals and broader market recovery.
Key growth observations:
- Morocco recorded the highest YoY growth: +148%
- UAE and Egypt: ~70% growth
- Saudi Arabia: Flat growth in early 2024, likely due to earlier peak adoption cycles
Interestingly, despite having populations roughly one-third that of Saudi Arabia or Egypt, both UAE and Morocco achieved comparable DAU levels—indicating higher per-capita adoption rates.
This suggests that localized infrastructure, ease of access, and regulatory clarity play crucial roles in driving user engagement beyond sheer population size.
User Behavior and Investment Preferences
Trading Habits Across Key Markets
Middle Eastern users exhibit distinct behavioral patterns shaped by economic conditions and technological access.
General Characteristics:
- High reliance on centralized exchanges (CEX)
- Frequent use of crypto for cross-border remittances due to limited banking access
- Strong interest in Meme coins and trending assets
- Growing attention to traditional finance developments (e.g., BlackRock ETF news)
Country-Specific Insights:
UAE Users
- 72% invest in Bitcoin, widely viewed as “digital gold”
- Active participants in DeFi protocols and DEX trading
- Early adopters of emerging narratives: RWA (Real World Assets), AI tokens, cross-chain bridges
- Popular tools: Dextool, Dexscreener, Birdeye
Saudi Arabia
- Focus on BTC and ETH for portfolio diversification
- Institutional interest rising
- High engagement with metaverse and NFT projects like The Sandbox
- Moderate DEX usage compared to global averages
Egypt
- Only ~3% crypto ownership rate (as of 2022)
- BTC primarily used as hedge against currency depreciation
- Over two-thirds lack traditional bank accounts—driving demand for crypto-based remittance solutions
Countries like Algeria, Morocco, and Jordan have smaller sample sizes but show similar behavioral trends where data is available.
Popular Sectors and Projects
Top Platforms by Country (Q1 2024)
| Country | Key Areas | Notable Platforms |
|---|---|---|
| UAE | DEXs, Web3 tasks, NFTs | Uniswap, PancakeSwap, OpenSea, MagicEden, Galxe |
| Saudi Arabia | NFTs, gaming, Web3 tasks | OpenSea, MagicEden, Sandbox, Axie Infinity, Galxe |
| Egypt | M2E games, DEXs | Sweat Economy, Pixels, PancakeSwap |
| Morocco | NFTs, Solana-based DEXs | OpenSea, MagicEden, Jupiter |
Top Search Trends (Jan–Apr 2024)
Using Google Trends data from the region:
- BOME (Book of Meme): Solana-based Meme coin frenzy captured widespread attention.
- RWA & ONDO: BlackRock’s entry into tokenized assets boosted interest in Real World Asset tokens; ONDO emerged as a top-searched symbol.
Mining & DePIN Projects: High interest in:
- Grass (Wynd Network): Browser-based data sharing
- ICE: Mobile mining project
- Pi Network (PI): Long-standing mobile mining initiative
Notably absent from top searches were alternative RWA tokens like GFI or MKR—suggesting that awareness remains concentrated around flagship projects.
Social Media & Local Communities
Arab-speaking crypto communities primarily operate on Twitter (X) and YouTube, with limited Telegram presence. Content is mostly in Arabic but increasingly bilingual.
Larger markets like UAE, Saudi Arabia, and Egypt produce native influencers who discuss trending altcoins (e.g., ENA), exchange promotions, and trading strategies. Smaller nations often follow content from these hubs due to fewer local creators.
Platform Competition: CEX vs DEX vs Wallets
Centralized Exchanges (CEX)
Traffic to CEX platforms rose sharply over the past year:
- UAE: +60% growth
- Morocco: +71%
- Egypt: +25%
Despite large populations, Saudi Arabia saw slight declines—possibly due to earlier saturation. Monthly unique visitors across top countries range between 700k–1M, showing strong demand.
However, local exchanges like Rain and M2 remain outside the Top 10 by traffic—outpaced by global players offering better liquidity and fiat gateways.
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Decentralized Exchanges (DEX)
Top DEX platforms used include:
- Uniswap (Ethereum)
- PancakeSwap (BSC)
- Raydium & Jupiter (Solana)
Usage varies by country:
- UAE: Broad adoption across chains; shift toward aggregation tools like 1inch
- Saudi Arabia: Balanced use across BSC, ETH, SOL
- Egypt: Prefers PancakeSwap; notable Cosmos activity via Astroport
- Morocco: Focused on Solana; high use of Jupiter aggregator
Traffic sources: Direct visits dominate, followed by Google Search and crypto news sites like CoinMarketCap (Egypt) and CoinGecko (Morocco).
Web3 Wallets (Q1 2024)
Top 5 wallets in the Middle East:
- Trust Wallet – Simple UI; early mover advantage
- MetaMask – Dominant on EVM chains
- Phantom – Rising due to Solana boom; potential airdrop speculation
- Coinbase Wallet – Trusted brand despite exchange unavailability
- Bitget Wallet – Fast updates; supports 90+ chains; innovative swap features; NFT marketplace allows payment in any token
Bitget Wallet has gained traction through gamified engagement (e.g., BWB airdrop program) and user-centric innovations—making it one of the fastest-growing wallets in the region.
Future Outlook: Five Predictions for 2024–2025
Based on current trends, Bitget Research forecasts:
- UAE as Regional Hub: Will consolidate its role as the Middle East’s center for crypto talent, capital inflow, and enterprise innovation.
- DAU Growth to 700K: By end of 2024, daily active traders could reach ~700K amid bullish market conditions.
- DeFi & Airdrop Culture Expansion: Terms like “airdrop farming” and “on-chain quests” will become mainstream on social media.
- Meme Coin Mania Continues: DEX platforms on Solana and BSC will remain hotspots for Meme coin speculation.
- Smart Wallets Gain Popularity: Multi-chain wallets with built-in aggregation and analytics will see increased adoption.
Frequently Asked Questions (FAQ)
Q: Which country has the highest crypto adoption in the Middle East?
A: The UAE leads in regulatory support and per-capita usage. It's considered the most crypto-friendly nation in the region.
Q: Are cryptocurrencies legal in Saudi Arabia?
A: While not fully legalized for retail use, Saudi Arabia is actively exploring blockchain technology and Web3 applications through state-backed initiatives.
Q: Why do Egyptians use cryptocurrency?
A: Due to high inflation and limited banking access, many Egyptians use crypto—especially Bitcoin—as a store of value and low-cost remittance tool.
Q: What are the most popular crypto platforms in the Middle East?
A: Trust Wallet and MetaMask dominate wallets; Uniswap and PancakeSwap lead DEX usage; global CEXs like Binance and OKX are widely accessed despite no local licenses.
Q: Is DeFi growing in the Middle East?
A: Yes—especially in UAE and Saudi Arabia. Users are increasingly engaging with yield farming, staking, and cross-chain protocols.
Q: Will Meme coins stay popular in 2025?
A: Given strong retail interest and social media virality, Meme coins are expected to remain a key speculative segment through 2025—particularly on high-speed chains like Solana.
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