May 30, 2024

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Cryptocurrency in the Land of Oil: How Cryptocurrency Will Look Like In UAE

What water is to fish, oil and gas are to the UAE’s economy. If we talk in numbers, the mining and quarrying sector, including crude oil and gas, contributes nearly 400 billion United Arab Emirates Dirham to the GDP of the United Arab Emirates.

But things might change in the future. A constantly evolving region like UAE would never put all its eggs in one basket. Diversity is the key to the economy’s growth, so if one pillar falls down the other one would provide the necessary support.

In the years to come, cryptocurrency might not be a pillar itself but it will strengthen all the pillars of any economy. Many countries have already embraced it, while some are in the process of legalizing it.

If all things equal, UAE is one of those countries where cryptocurrency will become a norm in years to come. The possibilities are endless… though I’m only going to stick to what looks possible, for now.

Source of Trading

To date, several countries have issued their own cryptocurrencies. These include Ecuador, China, Senegal, Singapore, Tunisia. Their objective is to shift more businessmen to local cryptocurrencies so the local economy can thrive.

A few more countries, including Estonia, Japan, Palestine, Russia, and Sweden, are all set to launch their own national cryptocurrencies with the same objective.

In UAE, not just for domestic trading but also for international trading as well, cryptocurrency might be the preferred source of paying or getting paid for the goods in the future. Who doesn’t want to get rid of tedious paperwork?

Instant transaction is another benefit of paying or getting paid via cryptocurrency. Within a few minutes, you can pay anyone sitting at the opposite corner of the world. The people in Dubai are generating massive profits with cryptocurrency, don’t you think it is the best time to Buy Crypto with Cash in Dubai?

In a country where the foreign trade value of export of goods is over USD 315.9 billion, cryptocurrency can further boost this sector. 

Influx of Investors

UAE is a hot place for profitable investments. People from all over the world run restaurants, hotels, real estate businesses, IT services, etc., in UAE. 

The foreign direct investment (FDI) in the UAE has risen to $19.88 billion, an increase of 44.2% from 2019. And these investments are likely to increase further in the coming years.

Imagine if cryptocurrency enables people to invest in the UAE while sitting in their homeland. What a major boost it will be for UAE’s economy.

Cryptocurrency can make investing in the UAE easier than before. This could be through agents/third parties or managing everything yourself.

Payment gateways and legal work remain a problem. However, cryptocurrency will simplify this aspect of investing in the UAE to a great extent.

E-commerce Boom

Cryptocurrency can result in an e-commerce boom in the UAE. With no need of attaching a debit or credit card, and secure means of paying via crypto wallet, who wouldn’t want to shop online?

There are two reasons why people hesitate to shop online: 1.Uncertainty about product quality 2. They don’t want to attach their bank card.

Cryptocurrency can solve both issues.

Plus, sellers often complain about scammers who buy a certain product and upon receiving the product ask for a refund via card. Since there’s no way you can reverse payment in blockchain, it’s preferred by sellers, too.

National Digital Currency

As said before, several countries are keen to launch their national cryptocurrency coin. If cryptocurrency becomes as common as traditional currency, countries with a national digital currency will reap great benefits.

There are already several cryptocurrency exchanges in Dubai, so promoting local digital currency won’t be an issue for the government.

This might sound like a stretch, considering the fact that cryptocurrency is still not prevalent in the UAE, but nobody knows what the future holds.

Developing countries are quite fast in adopting the trends. And everybody knows cryptocurrency is going to be a huge part of the world economy.

Once allies and neighbors accept and start trading in crypto, UAE won’t need another signal to normalize crypto. After all, the people ruling the UAE are wise enough to adopt what has become a norm worldwide.

Local Businesses Will Thrive

If we connect the dots, cryptocurrency will bring more investors and business opportunities to the UAE. So what happens when a country gets foreign investors? More jobs…

Foreign investment plays a huge role in creating jobs in any country. Besides its forever growing local industries, UAE will have more industries set up from foreign investments where thousands of individuals will be able to earn their livelihood.

Another interesting scenario would be the UAE becoming a leading tourist destination for people who don’t want to carry cash or cards with themselves.

This too can benefit the local businesses associated with tourism, such as hotels, restaurants, resorts, shopping malls, etc.

Final Words

When we think about cryptocurrency in the land of oil, the sky feels the only limit. It’s beyond one’s mind how much difference can digital currency make to the already growing UAE economy. However, how long it will take and how things will unfold regarding digital currency, only time will tell!