The GCC’s cryptocurrency market is poised for a new phase of expansion as user adoption accelerates and government-backed blockchain initiatives gain momentum across the region. According to Statista, the GCC crypto market is expected to generate revenues of $1.4 billion by 2025, with steady growth projected to carry total revenues to the same level by 2026, supported by a compound annual growth rate of 1.63 percent between 2025 and 2026.
User growth is emerging as a key driver of this trajectory. The number of cryptocurrency users in the market is forecast to reach 12.49 million by 2026, with penetration rising from 19.08 percent in 2025 to 20.02 percent in the coming year.
The data also reveales that average revenue per user is estimated at $116.7 in 2025, underscoring the increasing economic weight of digital assets within the financial ecosystem. While the United States continues to dominate the global landscape with projected revenues of $17.4 billion in 2025, the GCC is carving out its own position as a fast-growing hub for crypto adoption, driven by progressive regulation, institutional interest and state-led adoption of blockchain technologies.
Crypto at the heart of Gulf economic diversification
Cryptocurrencies have moved well beyond the margins of financial innovation, becoming clear signals of a deeper transformation in the global financial landscape as it shifts from traditional, centralized systems toward decentralized digital frameworks.
Once largely associated with speculative activity, digital assets are increasingly being used as tools in cross-border trade and instruments that could reshape geopolitical alignments. This transition is particularly evident across the GCC region, where digital finance has become a cornerstone of economic diversification strategies.
The rapid growth of crypto and financial technology in the GCC underscores broader economic reform efforts, as well as a push for greater financial sovereignty and resilience amid geopolitical uncertainty and long-standing oil dependence. Backed by strong state support and accelerated digitalization in the post-pandemic period, the region’s fintech ecosystem has expanded swiftly, creating favorable conditions for wider blockchain adoption.
The Malcolm H. Kerr Carnegie Middle East Center says blockchain uptake in the GCC has recorded a compound annual growth rate of 70 percent, driven by targeted policy frameworks, highlighting strong regional demand for secure, transparent and efficient digital solutions.
UAE positions itself as the region’s crypto frontrunner
A country-by-country view highlights the varied ways GCC states are balancing innovation, regulation and oversight, with strategies spanning proactive leadership, measured experimentation and tighter restrictions. The UAE has positioned itself as the region’s crypto frontrunner, pairing ambitious adoption goals with well-defined regulatory frameworks through bodies such as the Virtual Asset Regulatory Authority, alongside the development of two dedicated financial free zones.
Meanwhile, Saudi Arabia has emerged as the GCC’s second-largest and fastest-growing crypto market, driven by strong grassroots participation, particularly among the youth, which account for 63 percent of total citizens.
Compared with North America and Western Europe, the GCC’s cryptoc market remains at an early stage, but growth prospects are strong. The region’s total market capitalisation stood at $744.3 million in 2024 and is forecast to expand at a compound annual growth rate of 16.75 percent between 2025 and 2033. By the end of 2025, market size is expected to reach $791.8 million, with user penetration projected at 19.08 percent.
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CBDC adoption grows to ease cross-border transactions
GCC states have also shown a measured but growing openness to central bank digital currencies (CBDCs), particularly in light of their potential to lessen reliance on the U.S. dollar and improve the efficiency of cross-border payments.
Beyond their technical advantages, CBDCs are increasingly viewed as strategic instruments within the Gulf’s broader push to strengthen financial sovereignty. The region has taken the lead in developing wholesale CBDCs, intended for use by financial institutions in domestic settlements and cross-border transactions, through pilot initiatives in the UAE, Bahrain, Oman and Saudi Arabia.
Notably, in 2019 the Saudi Central Bank and the Central Bank of the UAE carried out a cross-border interoperability trial under Project Aber. Bahrain has likewise conducted multiple interoperability tests with JPMorgan and is currently advancing through the pilot phase.
The GCC’s crypto strategy is closely linked to its goals of economic diversification and the development of progressive regulatory frameworks. Even in countries adopting a more cautious approach, digital assets are anticipated to gain momentum and become a key component of the region’s broader economic vision.
Moving forward, the use of cryptocurrencies for trade settlements and the expansion of other digital asset initiatives are expected to increase significantly.
