Stablecoins are close to a nation-wide launch in the UAE with a strategy that could upend how residents and banks transact here on out.
While digital currencies are not as ubiquitous as physical money or traditional banking services, authorities are laying the groundwork to increase their adoption with their implementation of the strategy expected this year.
"Utility will drive stablecoin adoption ... clear regulation and compliance are fundamental to all financial services and are as important to blockchain adoption," Reece Merrick, managing director for Middle East and Africa at crypto company Ripple, told The National.
"The jurisdictions that are working to create regulatory clarity around digital assets are the ones that will see greater investment and institutional adoption, driving real-world utility."
Stablecoins and the UAE
In March 2023, the UAE Central Bank began implementing its central bank digital currency strategy, Digital Dirham. Last year, the regulator's regulation on stablecoins indicated that it was to establish a clear operational framework for cryptocurrencies when implemented.
Abu Dhabi Global Market and Dubai's Virtual Assets Regulatory Authority already have frameworks in place for cryptocurrencies. To bolster the strategy, the central bank last month unveiled a new, digital-oriented dirham symbol.
And in December, AE Coin, the first regulated digital currency in the UAE, was granted final approval by local authorities and was scheduled to be launched “soon”.
Tether, whose USDT is the world's biggest stablecoin, in August received the go-ahead to develop a stablecoin in the UAE.
Half of adults globally – an estimated 2.5 billion – do not use formal financial services and about 75 per cent of underprivileged people do not use banking services, January data from the World Bank found.
"Traditional banking systems are either limited, slow, or entirely inaccessible in many regions. This is where stablecoins have the potential to be a game-changer," Sebastien Badault, a vice president at French cryptocurrency and cyber security company Ledger, told The National.
Unlike legacy financial institutions that require paperwork, approvals and physical branches, stablecoins only require an internet connection and a digital wallet. This removes barriers and allows anyone, anywhere, to send, receive and store money without needing a bank.
This is expected to make it easier for residents to send money abroad more directly from the UAE, which is among the top ten senders of remittances globally according to the World Bank.
For migrant workers, small businesses and those in economies with unstable currencies, stablecoins can provide an efficient, low-cost financial alternative.
In the UAE, where the dirham is pegged to the US dollar, "they function as a gateway to broader crypto trading", Arushi Goel, policy lead for the Middle East and Africa at blockchain company Chainalysis.
According to New York-based Chainalysis data, 93 per cent of stablecoin transfers in the UAE are retail-sized – investments that are typically individual and smaller compared to bigger institutional investors – thus "highlighting their role as a gateway for retail market participation", she told The National.
The case for using stablecoins
Stablecoins are rapidly gaining traction across the globe. Last year, El Salvador was the first country to issue and regulate a national stablecoin. Australia, China, Hong Kong and Singapore have all implemented stablecoin frameworks in one form or another.
Stablecoins - which are pegged to a fiat currency - tend to be less volatile then, say, Bitcoin, where swings are influenced by simple factors such as tweets. They are grounded being tied to a currency, or liquid reserves including government treasuries, or commodities such as precious metals.
The World Economic Forum recognises that stablecoins can maintain a steadier value, making them ideal for payments, savings and remittances.
And stablecoin use continues to grow: an estimated $208 billion worth will be in circulation this year, a 28.4 per cent jump from 2024, according to Visa and its data partner Allium.
Coffee table talk
Daily payments for things such as clothes and coffee also stand to benefit from stablecoin use, particularly for merchants. Unlike traditional card payments that need up to several hours – days, even – to be cleared, cryptos in general are instantaneous, meaning those funds can immediately be used.
Also, while bank cards typically charge 2 per cent to 3 per cent for transactions; cryptos would only hit payers with a mere fraction of that.
In the UAE, the Dubai Multi Commodities Centre and Reit Development in January unveiled plans for Crypto Tower, which will use blockchain for real estate, and tenant management and ownership, on-chain voting and smart contracts.
That is a vote of confidence that would open up more opportunities for mainstream stablecoin and crypto adoption.
"Ultimately, stablecoins and decentralised finance are addressing the pain points of traditional finance systems, offering solutions that aren't constrained by the 9-to-5, five-day workweek," a representative for Binance, the world's largest cryptocurrency exchange, told The National.
However, stablecoins' appeal varies by market: for example, in Turkey, where inflation and economic instability are persistent concerns, stablecoins can serve as a reliable store of value. In Argentina, the use of stablecoins has also helped shield consumers from inflation.
"Regardless of what they’re pegged to, a clear regulatory environment is key. The UAE, through its various regulators, requires stablecoins to be fully backed by high-quality liquid assets and subject to regular audits," Ms Goel said.
If you can't beat 'em, join 'em?
As with any other new innovation, those engaged in traditional practices may initially resist change. A similar case was when music labels opposed digital music until Apple introduced iTunes in the early 2000s.
In the case of stablecoins, and crypto in general, banks may initially resist, arguing that traditional finance remains safer and better regulated, but they could ultimately be forced to adopt stablecoin technology to remain competitive, said Josh Gilbert, a market analyst at investment platform eToro.
"We’re already seeing financial institutions explore CBDCs [central bank digital currencies]. Stablecoins play a significant role in cross-border payments and remittance because they don’t require middlemen or hefty service fees, all without having to worry about volatility," he told The National.
This has led to many traditional financial institutions to begin adopting digital assets, "recognising that they can't ignore the shift toward decentralised finance", the Binance representative said.
Big names in the industry have began adopting digital assets. In February, the UK's Standard Chartered Bank, Europe's fifth-biggest bank by assets, said it was partnering with crypto companies to launch a stablecoin to be pegged with the Hong Kong dollar. Others, such as Bank of America, PayPal and Stripe have either launched stablecoins or have made their intentions to enter the market known.
"Those who integrate stablecoin infrastructure into their offerings rather than fight it will not only survive but emerge as leaders in the next financial era," Mr Badault said.
This doesn't mean stablecoins are bulletproof: despite their name, they are not immune from market fluctuations. Fiat-pegged stablecoins, such as those linked to strong global currencies such as the dollar, remain the most practical and predictable for trading and payments.
But commodity-backed stablecoins, such as those tied to gold or oil, offer an alternative hedge but ultimately remain susceptible to market fluctuations in those underlying assets.
Analysts admit digital assets still have a long way to go and their progress would largely depend on regulation and oversight. Collapses such as the one that beset Luna in 2022 mean that concerns around reserves, transparency and systemic risks persist.
"To ensure mainstream adoption, regulators must establish clear guidelines on reserve backing, transparency and consumer protection," Mr Gilbert said, noting that even proactive countries like the UAE will have to wait before stablecoins are fully integrated into regulated financial systems.
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
The biog
Favourite book: Men are from Mars Women are from Venus
Favourite travel destination: Ooty, a hill station in South India
Hobbies: Cooking. Biryani, pepper crab are her signature dishes
Favourite place in UAE: Marjan Island
Cricket World Cup League 2 Fixtures
Saturday March 5, UAE v Oman, ICC Academy (all matches start at 9.30am)
Sunday March 6, Oman v Namibia, ICC Academy
Tuesday March 8, UAE v Namibia, ICC Academy
Wednesday March 9, UAE v Oman, ICC Academy
Friday March 11, Oman v Namibia, Sharjah Cricket Stadium
Saturday March 12, UAE v Namibia, Sharjah Cricket Stadium
UAE squad
Ahmed Raza (captain), Chirag Suri, Muhammad Waseem, CP Rizwan, Vriitya Aravind, Asif Khan, Basil Hameed, Rohan Mustafa, Kashif Daud, Zahoor Khan, Junaid Siddique, Karthik Meiyappan, Akif Raja, Rahul Bhatia
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ELeap%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202021%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ziad%20Toqan%20and%20Jamil%20Khammu%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20Undisclosed%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3ESeven%3C%2Fp%3E%0A
TOUCH RULES
Touch is derived from rugby league. Teams consist of up to 14 players with a maximum of six on the field at any time.
Teams can make as many substitutions as they want during the 40 minute matches.
Similar to rugby league, the attacking team has six attempts - or touches - before possession changes over.
A touch is any contact between the player with the ball and a defender, and must be with minimum force.
After a touch the player performs a “roll-ball” - similar to the play-the-ball in league - stepping over or rolling the ball between the feet.
At the roll-ball, the defenders have to retreat a minimum of five metres.
A touchdown is scored when an attacking player places the ball on or over the score-line.
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Read more about the coronavirus
2020 Oscars winners: in numbers
- Parasite – 4
- 1917– 3
- Ford v Ferrari – 2
- Joker – 2
- Once Upon a Time ... in Hollywood – 2
- American Factory – 1
- Bombshell – 1
- Hair Love – 1
- Jojo Rabbit – 1
- Judy – 1
- Little Women – 1
- Learning to Skateboard in a Warzone (If You're a Girl) – 1
- Marriage Story – 1
- Rocketman – 1
- The Neighbors' Window – 1
- Toy Story 4 – 1
PREMIER LEAGUE FIXTURES
All times UAE ( 4 GMT)
Saturday
West Ham United v Tottenham Hotspur (3.30pm)
Burnley v Huddersfield Town (7pm)
Everton v Bournemouth (7pm)
Manchester City v Crystal Palace (7pm)
Southampton v Manchester United (7pm)
Stoke City v Chelsea (7pm)
Swansea City v Watford (7pm)
Leicester City v Liverpool (8.30pm)
Sunday
Brighton and Hove Albion v Newcastle United (7pm)
Monday
Arsenal v West Bromwich Albion (11pm)
What%20is%20cystic%20fibrosis%3F
%3Cul%3E%0A%3Cli%3ECystic%20fibrosis%20is%20a%20genetic%20disorder%20that%20affects%20the%20lungs%2C%20pancreas%20and%20other%20organs.%3C%2Fli%3E%0A%3Cli%3EIt%20causes%20the%20production%20of%20thick%2C%20sticky%20mucus%20that%20can%20clog%20the%20airways%20and%20lead%20to%20severe%20respiratory%20and%20digestive%20problems.%3C%2Fli%3E%0A%3Cli%3EPatients%20with%20the%20condition%20are%20prone%20to%20lung%20infections%20and%20often%20suffer%20from%20chronic%20coughing%2C%20wheezing%20and%20shortness%20of%20breath.%3C%2Fli%3E%0A%3Cli%3ELife%20expectancy%20for%20sufferers%20of%20cystic%20fibrosis%20is%20now%20around%2050%20years.%3C%2Fli%3E%0A%3C%2Ful%3E%0A
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
Teams in the EHL
White Bears, Al Ain Theebs, Dubai Mighty Camels, Abu Dhabi Storms, Abu Dhabi Scorpions and Vipers
Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
