UAE Emerges as a Global Leader in Digital Asset Regulation

UAE Ranked Among the World’s Most Advanced Digital Asset Regulators

The United Arab Emirates (UAE) has been ranked among the most advanced digital asset regulators in the world, according to the Global Digital Assets Report 2025. The report, published by the Global Finance and Technology Network (GFTN) in partnership with Arthur D. Little, places the UAE alongside Singapore and Switzerland as top-tier jurisdictions for digital asset regulation.

The announcement was made during the Singapore FinTech Festival 2025 and marks a major milestone for the UAE, which has spent several years building comprehensive regulatory frameworks for tokenised assets, digital currencies, virtual asset service providers, and emerging financial technologies.

A Transforming Global Landscape for Digital Assets

The Global Digital Assets Report outlines a significant acceleration in digital asset adoption worldwide, driven by stablecoins, real-world asset tokenisation, and programmable finance initiatives.

Growth of Stablecoins and Blockchain Payments

Stablecoins have processed an estimated 263 trillion USD in transactions since 2019, with more than 40 trillion USD occurring in the past twelve months. Their usage has expanded across retail payments, institutional settlements, and cross-border transfers.

Expansion of Real-World Asset Tokenisation

The report notes a 380 percent rise in tokenised real-world assets since 2022. Assets such as real estate, private equity, and luxury goods are increasingly being digitised to enable fractional ownership and improved market access.

Global Regulatory Priorities

Thirty-one percent of global regulators list stablecoin issuers as their top priority, while forty-six percent identify programmable finance as the biggest opportunity ahead. These trends signal a shift from legacy financial systems to next-generation digital infrastructure.

Why the UAE’s Regulatory Framework Is Considered World Class

Several key features of the UAE’s regulatory approach contribute to its high global ranking and growing investor confidence.

Activity-Based Licensing Systems

Regulators such as Dubai’s Virtual Assets Regulatory Authority (VARA) and Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) operate activity-based licensing frameworks. Firms are licensed according to their specific business activities, including trading, custody, issuance, tokenisation, advisory services, and brokerage.

Strong Focus on Market Integrity and Investor Protection

The UAE’s regulatory frameworks emphasise custodial safeguards, cybersecurity standards, compliance controls, and strict market conduct rules. This balance between innovation and protection has strengthened investor trust.

Interoperability and Future Readiness

The report highlights the UAE’s forward-looking regulatory design, which prepares the market for tokenised financial systems, programmable payments, and cross-border digital asset infrastructure.

Regional Context: A Growing Gulf Digital Asset Ecosystem

While the UAE leads the region, other Gulf Cooperation Council (GCC) countries are also advancing digital asset regulation. Saudi Arabia and Qatar are developing supervisory frameworks for tokenisation, digital settlements, and cross-border payment initiatives.

According to the report, investor activity grows fastest in markets where regulatory clarity is well established — a trend clearly visible across the GCC.

Implications for the UAE’s Digital Asset Economy

Increased Attraction for International Firms

The UAE’s regulatory clarity is expected to attract global exchanges, custodians, tokenisation platforms, and fintech startups seeking a stable base for Middle East and Africa operations.

Acceleration of Real-World Asset Tokenisation

Tokenised real estate, private funds, and fractional ownership models are already gaining momentum in Dubai and ADGM, supported by robust regulatory oversight.

Cross-Border Payment Innovation

The UAE’s role as a regional financial hub positions it well for blockchain-based remittances and digital settlement corridors, which are expected to expand significantly.

Higher Institutional Participation

Clear regulations may encourage banks, wealth funds, family offices, and private equity firms to deploy capital through tokenised instruments and digital asset vehicles.

Role in Global Standard Setting

The UAE is increasingly positioned to influence international policy discussions on tokenisation, digital asset governance, and regulatory harmonisation.

Challenges and Considerations Ahead

Regulatory Adaptation

Emerging models such as decentralised finance and automated protocols will require continuous regulatory calibration.

Liquidity for Tokenised Assets

Secondary market liquidity must grow further for tokenised markets to reach full maturity.

Cybersecurity and Risk Management

As digital asset adoption increases, regulators must continue balancing innovation with robust oversight of cybersecurity and operational risks.

Conclusion: A Strategic Milestone for the UAE

The UAE’s recognition as one of the world’s most advanced digital asset regulators reflects a long-term strategic vision. With strong frameworks, an innovation-friendly environment, and alignment with global best practices, the UAE is well positioned to shape the future of digital finance.

As tokenisation, digital currencies, and programmable finance become increasingly mainstream, the UAE stands ready to influence — and benefit from — this global transformation.