The Middle East & North Africa (MENA) region has emerged as the seventh-largest crypto market globally, with an estimated $338.7 billion in on-chain value received between July 2023 and June 2024. This accounts for 7.5% of global transaction volume, driven by institutional activity and growing DeFi adoption.
Key Highlights:
- Top Adopters: Türkiye (11th) and Morocco (27th) lead in grassroots adoption, capturing $137 billion** and **$12.7 billion in transactions, respectively.
- Institutional Dominance: 93% of transactions exceed $10,000, reflecting professional-level engagement.
- DeFi Growth: UAE and Saudi Arabia show above-average DeFi adoption, leveraging progressive regulations and young, tech-savvy populations.
Market Dynamics in MENA
1. Centralized vs. Decentralized Platforms
- CEXs remain dominant but DeFi platforms are gaining traction, especially in the UAE and Saudi Arabia.
- Heatmap Insight: Saudi Arabia leads in DEX activity, while Türkiye and Qatar remain CEX-reliant.
2. Demographic Advantage
- Saudi Arabia’s youth (63% under 30) are pivotal in adopting decentralized finance.
- UAE’s regulatory clarity has fostered a hub for DeFi innovation, attracting global crypto businesses like Chainalysis and Tether.
3. Financial Inclusion
- DeFi bridges gaps for the underbanked (50% of MENA adults lack bank accounts).
- Stablecoins offer volatility hedging, particularly in high-inflation economies like Türkiye.
Stablecoins and Altcoins: Rising Stars
| Country | Trend | Driver |
|---------------|-------------------------------|---------------------------------|
| Türkiye | Stablecoin dominance (4% of GDP) | Inflation hedge |
| UAE | Stablecoins as on-ramps | Dirham’s USD peg |
| Israel | Altcoin speculation | High-risk appetite |
👉 Explore MENA’s crypto trends
Regulatory Progress
UAE: A Blueprint for Balance
- Federal & Free Zone Frameworks: SCA (federal), CBUAE (payments), and VARA (Dubai) provide tailored regulations.
- VARA’s Collaborative Model: Licensing 1,000+ crypto entities while prioritizing innovation.
Türkiye: Maturation Through Regulation
- 76 licensed CASPs signal a structured market.
- Banks like Garanti BBVA now offer crypto custody, bridging TradFi and DeFi.
Saudi Arabia & Qatar: Fastest-Growing Markets
- Saudi Arabia: 154% YoY growth; focus on blockchain and CBDCs.
- Qatar: 120% YoY growth; new digital asset regime fuels fintech.
FAQ
Q1: Why is MENA’s crypto market unique?
A: Institutional dominance (93% large transactions) combined with high DeFi potential in youth-driven economies.
Q2: How does DeFi support financial inclusion?
A: It provides unbanked populations access to loans, savings, and investments without traditional intermediaries.
Q3: What’s driving stablecoin adoption in Türkiye?
A: Inflation nearing 50% pushes demand for non-volatile assets like USD-pegged stablecoins.
Future Outlook
- 2024 regulations will shape DeFi vs. CEX balance.
- Tokenization (projected $4 trillion by 2030) and blockchain innovation are key growth areas.
MENA’s progressive policies and tech-ready demographics position it as a global crypto leader.