From oil to cryptocurrencies: How UAE becomes Bitcoin nation

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Eugene Komchuk

27.08.2025

From oil to cryptocurrencies: How UAE becomes Bitcoin nation — Why did the UAE start accumulating bitcoins?

The United Arab Emirates has become the first Arab country with a bitcoin treasury. On the country’s accounts, $700 million in BTC has been identified. If earlier the state was associated only with oil and financial investments, now it is betting on cryptocurrencies.

Analysts from Arkham Intelligence were the first to discover bitcoin addresses belonging to the United Arab Emirates. According to blockchain data, the country’s reserve now holds 6,333 BTC worth about $700 million.

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These coins were mined by the public mining company Citadel, owned by Royal Group. Founded in 2022, Citadel Mining operates one of the largest bitcoin mining enterprises in the region, located in Abu Dhabi.

It is worth noting that Royal Group is not a state-owned company but is connected to the authorities because it belongs to members of the ruling elite. However, the UAE’s attitude toward cryptocurrencies has not always been positive.

The UAE’s crypto evolution

In the early 2010s, the United Arab Emirates’ stance on cryptocurrencies was rather cautious. The central bank issued warnings about the high risks and instability of digital assets, regarding them as a threat to the financial system. At that time, cryptocurrency was seen more as a source of problems than as a promising tool.

The situation began to change between 2016 and 2018, when the authorities launched the Dubai Blockchain Strategy. Its goal was to implement blockchain technology in government services and the economy. In 2020, the regulator Dubai Virtual Asset Regulatory Authority (VARA) was established, which initiated the legalization of crypto platforms and laid the groundwork for licensing major players.

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By 2021–2023, the country officially licensed the largest crypto exchanges, including Binance and Bybit. This marked the final shift from previous prohibitions to building a full-fledged Web3 and DeFi ecosystem.

Which countries accumulate Bitcoin

The UAE is far from the first country to decide to accumulate cryptocurrencies. The pioneer was El Salvador, which in 2021 made bitcoin legal tender. Since then, the state has regularly bought BTC into its treasury, having already accumulated 6,268 BTC.

Bitcoin reserves of governments. Arkham data

Bhutan took a different path: for a long time, it concealed its participation in the industry, but later it became known about the kingdom’s investments in mining and the accumulation of its own crypto reserves. Today the country holds 10,769 BTC.

The largest holders remain the United States and the United Kingdom. Their bitcoins came as a result of investigations and seizures of assets from illegal platforms. Thus, they control 198,022 BTC and 61,245 BTC, respectively.

As we can see, the UAE has become the fourth country in terms of the size of its bitcoin treasury. This, of course, does not take into account North Korea’s bitcoins, whose hackers stole about 13,562 BTC.

Why the UAE chose Bitcoin

But why did the UAE decide to choose the main cryptocurrency for forming a reserve? For the United Arab Emirates, the bet on bitcoin is a logical continuation of the strategy to diversify the economy and reduce dependence on oil revenues. The authorities seek to secure the country’s status as an innovative financial center capable of competing with the world’s capitals of capital. Developing crypto infrastructure not only attracts global exchanges and technology startups but also shapes the region’s image as a leading hub for digital asset investment.

This policy fits into the global trend: bitcoin is gradually becoming part of treasury strategies not only for companies but also for governments. The example of MicroStrategy, Tesla, and Block has shown that BTC can serve as “new digital gold,” functioning as a hedge against inflation and financial risks. For countries like the UAE, including bitcoin in reserves is not only a step toward strengthening economic resilience but also an instrument of international positioning in the face of growing competition.

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