UAE emerges as global leader in digital-asset regulation

The United Arab Emirates has emerged as one of the world’s most advanced markets for digital assets, according to the Global Digital Assets Report 2025, published by the Global Finance & Technology Network (GFTN) in collaboration with Arthur D. Little.

Unveiled at the Singapore FinTech Festival 2025, the report highlights the UAE’s regulatory progress as a benchmark for innovation, investor protection, and market integrity, according to WAM.

The study links the rapid growth of stablecoins and tokenized assets to the UAE’s licensing frameworks, regulatory sandboxes, and institutional pilot programs.

It positions the UAE alongside Singapore and Switzerland in regulatory maturity, with Dubai’s VARA and Abu Dhabi Global Market’s FSRA recognized for activity-based licensing that balances innovation with investor safeguards.

Saudi Arabia’s SAMA and CMA are developing supervisory frameworks for tokenization and cross-border payments, while Qatar’s QFCRA is advancing regulations for tokenized assets.

Drawing on interviews with over 40 regulators, central bankers, and financial executives across Asia, Europe, and the Middle East, the report finds that clear regulatory guidelines drive investor participation.

GCC countries, particularly the UAE and Qatar, now demonstrate structured cooperation supporting responsible market growth and interoperability.

Sopnendu Mohanty, Group CEO of GFTN, said: “Capital follows clarity. Gulf regulators are building frameworks focused on longevity, with interoperability and real-world tokenization setting them apart from markets still testing fundamentals.”

Arjun Vir Singh, Partner at Arthur D. Little Middle East, added: “The GCC’s frameworks show how clear policy design can accelerate market readiness and strengthen institutional confidence in digital finance.”

The report serves as a cross-jurisdictional reference for policymakers and financial institutions, documenting how the UAE and GCC have created one of the world’s most advanced regulatory ecosystems, providing a foundation for continued regional and global collaboration in digital finance.