The Middle East and North Africa (MENA) region is emerging as a dynamic force in the global cryptocurrency landscape. Ranked as the seventh-largest crypto market in 2024, MENA recorded an impressive $338.7 billion in on-chain value received between July 2023 and June 2024—representing 7.5% of worldwide transaction volume. While smaller than dominant markets like North America or East Asia, MENA's growth trajectory is powered by regulatory innovation, rising DeFi adoption, and strong consumer engagement, particularly in key economies such as Türkiye, the UAE, Saudi Arabia, and Qatar.
Rising Crypto Adoption Across Key Markets
Two nations in the region—Türkiye (11th) and Morocco (27th)—feature prominently in the global crypto adoption index. Türkiye leads MENA with $137 billion in on-chain value received, followed by Morocco with $12.7 billion. The region’s crypto activity is largely institutional, with 93% of transactions valued at $10,000 or more, underscoring the dominance of professional-grade investors and enterprises.
While centralized exchanges (CEXs) remain the primary gateway for crypto inflows across most of MENA, decentralized platforms are gaining momentum—especially in forward-thinking economies like Saudi Arabia and the UAE.
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DeFi Gains Ground in Saudi Arabia and UAE
Saudi Arabia and the UAE are at the forefront of DeFi adoption in MENA. The majority of decentralized finance (DeFi) activity occurs through decentralized exchanges (DEXs), with Saudi Arabia showing slightly higher participation in broader DeFi use cases compared to its peers.
Saudi Arabia, a G20 nation with over 30 million people, has a uniquely youthful population—63% under the age of 30. This demographic is naturally more receptive to digital finance innovations, making it fertile ground for blockchain and DeFi expansion. Despite lacking a comprehensive regulatory framework for virtual asset service providers (VASPs), new developments in Qatar—such as licensing pathways for token service providers—are signaling a shift toward formalization.
In contrast, the UAE has established itself as a regional leader through proactive regulation. Its progressive stance has attracted global crypto firms and venture capital, positioning it as a hub for DeFi innovation.
Beyond financial speculation, DeFi holds transformative potential for financial inclusion. With less than 50% of adults in non-high-income MENA countries holding bank accounts (World Bank, 2021), decentralized platforms offer access to savings, lending, and investment tools without traditional intermediaries. This could serve as a leapfrog technology for the unbanked—mirroring mobile banking’s rise in Africa.
Stablecoins and Altcoins Outpace Bitcoin and Ether
A notable trend across MENA is the growing preference for stablecoins and altcoins over traditional assets like Bitcoin (BTC) and Ether (ETH), particularly in Türkiye, Saudi Arabia, and the UAE.
In Türkiye—a country grappling with prolonged inflation hovering near 50%—stablecoins have become a critical hedge against currency devaluation. Citizens increasingly use dollar-pegged tokens like USDT and USDC to preserve purchasing power. In fact, Türkiye leads the world in stablecoin trading volume relative to GDP, with volumes reaching nearly 4% of GDP in dollar terms—a striking indicator of crypto’s embeddedness in daily financial behavior.
Conversely, in the UAE—where the dirham is pegged to the U.S. dollar—stablecoins are less about inflation protection and more about on-ramping into broader crypto markets. They serve as entry points for trading, investing, and accessing DeFi protocols.
While ETH usage remains below global averages across MENA, interest in altcoins is notably high in Israel and Saudi Arabia, reflecting a higher risk appetite and appetite for diversified digital assets. Israel’s recent successful government bond tokenization pilot aligns with growing global interest in asset tokenization—a sector projected to reach $4 trillion by 2030 (McKinsey).
UAE: A Model for Balanced Crypto Growth
The UAE has emerged as a model for balanced, regulation-driven crypto adoption. Between July 2023 and June 2024, it received over $30 billion in crypto inflows, ranking among the top 40 globally and making it MENA’s third-largest crypto economy.
Unlike many regions where adoption is concentrated among high-net-worth individuals or institutions, the UAE is seeing growth across all transaction sizes, indicating widespread and inclusive adoption.
The ecosystem extends far beyond CEXs:
- Value received by DeFi services grew by 74% year-over-year
- Value to DEXs alone surged by 87%, rising from $6 billion to $11.3 billion
Venture capital is flowing in, with numerous blockchain startups and firms like Chainalysis establishing regional headquarters in Dubai. Even Tether has announced plans to launch a dirham-pegged stablecoin, further integrating crypto into the national financial fabric.
Regulatory clarity is central to this growth. Multiple authorities govern crypto:
- Securities and Commodities Authority (SCA): Federal oversight of virtual assets
- Central Bank of the UAE (CBUAE): Regulates payment token services
- DIFC and ADGM: Financial free zones with independent regulatory frameworks
- VARA (Dubai’s Virtual Assets Regulatory Authority): The world’s first standalone crypto regulator
VARA has identified over 1,000 entities operating in Dubai’s crypto space and is guiding them through licensing. Its collaborative approach—focused on co-learning with industry—sets a benchmark for innovation-friendly regulation.
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Türkiye: Consumer Demand Driving Market Maturation
Türkiye is not only MENA’s largest crypto market but ranks seventh globally, with $136.8 billion in on-chain value received. This surge is fueled by consumer-driven demand, economic instability, and a growing regulatory framework.
With inflation persistently near 50%, citizens have turned to crypto—especially stablecoins—as a store of value. Stablecoin purchases using Turkish Lira reached nearly $6 billion in March 2024, closely tracking inflation trends.
Retail engagement is massive: estimates suggest 40–50% of the population uses crypto. Beyond BTC and ETH, users favor speculative altcoins—including fan tokens and meme coins—reflecting a high-risk, high-reward investment culture.
Regulation is catching up:
- 76 Crypto Asset Service Providers (CASP) have declared compliance intent
- The Capital Markets Law was recently amended to include crypto assets
- Banks like Garanti BBVA now offer crypto custody and are preparing to launch trading services
This institutional involvement signals market maturation. While Binance and local CEXs still dominate, traditional banks are entering the space—enhancing consumer protection and market integrity.
Türkiye also leads MENA in professional-level transactions (43.2%), highlighting robust mid-sized and large-scale trading activity driven by both retail investors and institutional funds.
Saudi Arabia and Qatar: Fastest-Growing Crypto Economies
Saudi Arabia remains MENA’s fastest-growing crypto economy, with a 154% year-over-year increase in activity. The growth is anchored in national initiatives around blockchain innovation, CBDCs (e.g., Project Aber with the UAE), fintech, and gaming.
Global financial giants like Goldman Sachs and Rothschild have established offices in Riyadh, signaling confidence in Saudi Arabia’s digital future. Goldman Sachs plans to launch three tokenization projects by year-end—further bridging TradFi and DeFi.
Qatar follows closely with 120% YoY growth, propelled by its new digital assets regime launched in September 2024. The Qatar Financial Centre (QFC) has created a legal foundation for asset tokenization and trusted tech infrastructure—paving the way for fintech innovation.
As adoption accelerates, regulatory clarity will be key to sustaining growth, protecting consumers, and attracting international investment.
FAQ: Understanding Crypto Trends in MENA
Q: Why are stablecoins so popular in Türkiye?
A: Due to high inflation (near 50%), Turks use dollar-pegged stablecoins like USDT to protect savings from currency devaluation—a practical hedge against economic instability.
Q: How is the UAE fostering DeFi growth?
A: Through clear regulations via VARA, federal oversight, and financial free zones like ADGM and DIFC, the UAE provides a safe environment for DeFi innovation and investment.
Q: Is DeFi helping financial inclusion in MENA?
A: Yes—DeFi offers banking alternatives for the underbanked (over 50% lack accounts in non-high-income countries), enabling access to loans, savings, and investments without intermediaries.
Q: Which countries lead in altcoin adoption?
A: Israel and Saudi Arabia show above-average interest in altcoins, reflecting higher risk tolerance and enthusiasm for diverse digital assets beyond BTC and ETH.
Q: Are traditional banks entering crypto in MENA?
A: Yes—banks like Garanti BBVA in Türkiye now offer custody services, with trading platforms launching soon. This marks a major shift toward regulated institutional participation.
Looking Ahead: MENA’s Global Crypto Influence
MENA is rapidly evolving into a pivotal player in the global crypto ecosystem. Driven by institutional adoption, regulatory progress, and strong public interest—especially in stablecoins and DeFi—the region is poised for continued expansion.
The UAE exemplifies how balanced regulation can nurture innovation while protecting users. Meanwhile, Türkiye demonstrates how economic necessity can fuel mass adoption. Saudi Arabia and Qatar’s rapid growth highlight the potential of youth-driven digital economies.
As blockchain technology becomes integral to global finance, MENA’s strategic investments in AI, CBDCs, and tokenization will further amplify its influence. With continued regulatory clarity, this region could become a blueprint for sustainable, inclusive digital finance transformation.
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