UAE emerges as top hub for digital-asset rules

By Vriti Gothi

The United Arab Emirates (UAE) has emerged as one of the world’s most advanced jurisdictions for digital-asset regulation, according to the Global Digital Assets Report 2025 released by the Global Finance & Technology Network (GFTN) in collaboration with Arthur D. Little. Unveiled at the Singapore FinTech Festival 2025, the study positions the UAE alongside Singapore and Switzerland as markets setting international benchmarks for regulated digital finance.

The report comes amid rapid expansion in the digital-asset ecosystem. Global stablecoin transactions have reached $263 trillion since 2019, including $40 trillion in the past year, while the tokenised real-world-asset market has grown 380% since 2022, driven largely by institutional pilots. Regulators are responding in kind: 31% identify stablecoin issuers as their primary supervisory priority, and nearly half view programmable finance as the next major opportunity.

Within this context, the UAE’s regulatory architecture is highlighted as a key driver of market confidence. Dubai’s Virtual Assets Regulatory Authority (VARA) and Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) are recognised for adopting activity-based licensing regimes designed to balance innovation with investor protection. The study also notes momentum across the wider Gulf, citing Qatar and Saudi Arabia among 12 global jurisdictions advancing digital-asset rulemaking and tokenisation pilots.

The findings are based on interviews with more than 40 regulators, central bank officials and financial-sector executives across Asia, Europe and the Middle East. According to the report, investor participation is accelerating most quickly in markets where clear regulatory parameters are established, a trend now visible across the GCC as authorities coordinate on standards and interoperability.

“The data shows a region that has moved from aspiration to execution,” said Sopnendu Mohanty, Group CEO of GFTN. “Behind the numbers is a simple reality: capital follows clarity. The Gulf’s regulators are building frameworks designed for longevity, not hype.”

Arjun Vir Singh, Partner and Head of Financial Services at Arthur D. Little Middle East, added,  “Our collaboration with GFTN reflects Arthur D. Little’s commitment to evidence-based insight. The GCC’s frameworks demonstrate how clear policy design can accelerate market readiness and strengthen institutional confidence in digital finance.”

The Global Digital Assets Report 2025 serves as a cross-jurisdictional reference for policymakers and financial institutions examining developments in digital money, tokenisation and decentralised finance. It concludes that the GCC’s increasingly structured and harmonised approach now places the region among the world’s most mature regulatory environments for digital assets, providing a foundation for deeper international cooperation and future market growth.