The United Arab Emirates: Global Champion of Crypto Regulation
In 2025, the United Arab Emirates stands out as one of the most sophisticated jurisdictions in the world for digital assets. Two regulators coexist, creating a strategic choice for businesses:
VARA (Virtual Assets Regulatory Authority) in Dubai: created in 2022, VARA is the first authority dedicated to virtual assets at the level of a local government (Emirate of Dubai). It issues licenses for exchanges, custodians, brokers, and virtual asset managers. In 2024, VARA granted licenses to players such as Binance, OKX, and several regional exchanges, legitimizing Dubai as a major crypto hub.
ADGM (Abu Dhabi Global Market): Abu Dhabi's financial free zone, through its regulator FSRA, offers an alternative framework oriented toward institutional players and high-end fintechs. ADGM attracts players like Anchorage Digital (institutional custody) and several digital asset managers operating on behalf of sovereign wealth funds in the region.
Saudi Arabia: A Market in the Process of Opening
Saudi Arabia has adopted a more cautious stance than the UAE, but the move toward digital asset regulation is underway. The Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority (CMA) are working jointly on a crypto framework expected to be finalized in 2025-2026. Players like Rain (a Bahrain-based exchange, authorized by the Saudi CMA) are already operating in the Saudi market.
The potential is considerable: with a population of 35 million people, 60% of whom are under 35, Saudi Arabia represents a significant retail crypto market, currently underserved by licensed players.
Gulf-Specific Use Cases
- Real estate asset tokenization: the Gulf real estate market (Dubai, Abu Dhabi, Riyadh) is one of the most active in the world. Tokenization of premium real estate assets allows attracting international investors with reduced entry tickets. Platforms like VARA-regulated Propy or local players like Realiste are structuring these transactions in Dubai.
- Tokenized sukuk: sukuk (Sharia-compliant bonds) are a major financial instrument in the region. Tokenizing sukuk on blockchain reduces issuance costs and improves secondary liquidity, which is particularly relevant for the Gulf market and the global Muslim diaspora.
- Dirham stablecoins: the Central Bank of the UAE launched the Digital Dirham (CBDC) project in 2023. Private players are also exploring the issuance of dirham-backed stablecoins under VARA license, to facilitate cross-border payments in the MENA region and with South Asia.
- Remittances to South Asia: the UAE is home to 3 million expatriate workers from South Asia (India, Pakistan, Bangladesh, Philippines) who send remittances to their home countries. Crypto solutions offer fees 5 to 10 times lower than traditional channels.
Why the Gulf Is a Strategic Hub for French-Speaking Players
For French, Mauritian, or African companies operating in the digital asset sector, the Gulf offers several strategic advantages: the absence of capital gains and income tax in most Emirates, facilitated access to South Asian and East African markets (via the diaspora and trade corridors), and the ability to operate within an internationally recognized regulatory framework while remaining in a time zone between Europe and Asia.
MASOF Consulting supports digital asset players in their Gulf expansion strategy: jurisdiction selection (VARA vs ADGM vs Bahrain), legal structuring, identification of local partners, and introductions to regional investors.