In recent years, the United Arab Emirates (UAE) has distinguished itself as one of the most forward-looking jurisdictions in the world when it comes to embracing crypto and digital assets. According to the “Avaloq Wealth Insights 2025” report published by Avaloq, a global fintech technology provider, investors in the UAE now rank among the highest globally in terms of crypto and digital asset involvement.
Accelerated adoption among investors
The report surveyed 3,851 investors and 456 financial professionals across 15 markets between February and March 2025. Key findings for the UAE include:
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39% of investors in the UAE hold crypto or digital assets, compared to the global average of 30%.
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93% of UAE investors use crypto exchanges, versus 86% globally.
These numbers point to a depth and breadth of engagement with digital assets in the UAE that significantly exceeds global norms. In short, UAE investors are not just experimenting—they are substantially involved.
Why the UAE stands out
Several structural and regulatory factors underpin the UAE’s strong positioning:
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A pro-innovation regulatory framework, which gives clarity and fosters confidence among investors and institutions.
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The UAE’s ambition to become a digital assets hub, supported by policy, infrastructure and global capital flows.
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A tipping point in investor sentiment, where traditional wealth investors are increasingly open to digital-asset allocation.
The asset-management industry: Catching up
Despite robust investor demand, the asset-management sector in the UAE appears to lag behind in readiness:
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64% of asset managers in the UAE say they want better solutions for crypto and digital-asset services.
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51% of non-crypto investors say they would invest if traditional financial institutions offered suitable products.
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However, only 30% of asset managers feel adequately capable of advising on these asset classes.
This gap between demand (from investors) and readiness (from institutions) suggests a significant opportunity for those firms that can develop compliant, capable digital-asset advisory and management services.
Strategic implications for financial institutions
For asset managers and wealth-management firms operating (or aiming to operate) in the UAE, the implications are clear:
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First-mover advantage: Firms that integrate digital-asset capabilities early are likely to gain competitive edge. As the report notes, those “early movers” will stand to benefit.
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Product innovation: There is strong latent demand among investors who have not yet entered the space—but could if familiar institutions offered trustworthy products.
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Regulatory alignment: Given the UAE’s favorable regulatory stance, firms that align with legal and compliance frameworks will enhance investor trust and access.
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Education & capability-building: Many firms lack confidence in their digital-asset advice; investing in talent, training and tech infrastructure is essential.
Outlook and potential risks
With the UAE’s current momentum, the next phase in its digital-asset journey could include larger inflows of global capital, more institutional adoption, and broader integration of digital assets into mainstream wealth portfolios.
That said, risks remain:
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Regulatory changes or global regulatory crackdowns could disrupt growth.
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Volatility in crypto markets may dampen investor sentiment if not managed well.
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Institutions that fail to evolve may lose relevance or market share rapidly.
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The technology architecture (exchanges, custody, advisory platforms) must keep pace with institutional requirements.
Conclusion
The UAE’s leadership in crypto and digital-asset adoption signals a broader shift in global finance: digital assets are no longer fringe—they are entering the mainstream. For investors in the UAE, the numbers speak for themselves: strong adoption, high exchange use, and a regulatory environment aligned with innovation. For institutions, this means the door is open—but only for those that move decisively.
As the financial world evolves, the UAE stands out as a case study of how a jurisdiction can embrace digital-asset transformation proactively, offering lessons for other markets and firms aiming to stay ahead of the curve.
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