Source: Freepik
Key Takeaways
- The UAE has no tax on cryptocurrency transactions, making it an attractive destination for crypto users.
- Dubai and Abu Dhabi lead the UAE’s crypto adoption, with major businesses integrating digital asset payments.
- Businesses in the UAE support different cryptocurrencies—some accept Bitcoin and Ethereum, while others include Tether, Tron, or Dogecoin.
- Bitcoin ATMs are available in key locations across the UAE, especially in Dubai and Abu Dhabi.
- Crypto spending in the UAE still faces challenges such as limited acceptance outside of Dubai and regulatory changes.
An Overview of Crypto Spending in the United Arab Emirates
Crypto spending in the UAE is driven by a combination of retail and institutional participation. It is also supported by a regulatory environment that encourages innovation. The UAE’s decision to abolish taxes on cryptocurrency transactions has further incentivized spending and investment. Thereby making it an attractive destination for both individuals and businesses looking to engage with digital assets.
Dubai and Abu Dhabi are at the heart of this activity, each playing a distinct role in shaping the UAE’s crypto landscape. Dubai, often referred to as the Gulf’s crypto hub, has established itself as a center for crypto innovation and spending. Abu Dhabi on the other hand is rapidly gaining traction as a financial hub for digital assets. The Abu Dhabi Global Market (ADGM), the emirate’s financial free zone, reported a 35% growth in assets under management.
Beyond these two emirates, others like Sharjah and Ras Al Khaimah are exploring blockchain applications and creating specialized zones to attract crypto and Web 3.0 businesses.
While crypto adoption among the local population remains relatively low at 10%, the pace of expansion is striking. According to a report from Bitget, the UAE recorded an average of over 500,000 daily crypto traders in 2024, representing a 51% year-on-year increase.
This surge has cemented the nation’s position as a leader in per capita adoption, with peak daily active users reaching 106,111 in 2024. This is a notable achievement compared to larger regional counterparts like Saudi Arabia, which reported 129,397 peak daily active users despite having a population three times the size of the UAE.
With no restrictions on using digital assets and regulations overseen by the Central Bank of the UAE, residents and visitors in Dubai and other cities can now shop, dine, and even pay for luxury experiences using cryptocurrency.
Best Places to Spend Crypto in the United Arab Emirates
| S/N | Best Places to Spend Crypto in the UAE | Category |
| 1. | YallaMarket | Grocery |
| 2. | Majid Al Futtaim Malls and Hotels | Hotel and shopping |
| 3. | Palazzo Versace | Hotel |
| 4. | Day to Day Hypermarket | Grocery |
| 5. | CÉ LA VI | Food and Drinks |
| 6. | Bake N More | Food |
| 7. | KISEL Diamonds | Jewelry |
| 8. | February 30 | Recreation |
YallaMarket
UAE-based grocery delivery service YallaMarket has partnered with Bahrain-based cryptocurrency exchange CoinMena to accept cryptocurrencies like Tether (USDT) as payment on its mobile app. The company is also exploring the possibility of paying salaries in digital assets, making it a pioneer in integrating crypto into everyday life.
Majid Al Futtaim Malls and Hotels
As one of Dubai’s largest retail giants, Majid Al Futtaim operates 29 shopping malls and 13 hotels across the UAE. Through its partnership with Binance, the company now accepts Bitcoin, Ethereum, and Dogecoin at its malls, hotels, and mixed-use communities.
Palazzo Versace
For those seeking a lavish experience, Palazzo Versace, a five-star hotel and resort, accepts Bitcoin, Ethereum, and BNB for dining, spa services, room stays, and events. The hotel also offers an e-commerce platform where guests can purchase gift vouchers using cryptocurrency.
Day to Day Hypermarket
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Day to Day Hypermarket is a popular grocery chain in Dubai with 11 branches across the UAE. Known as the first supermarket in the UAE to accept cryptocurrency, it allows customers to pay with Bitcoin, Ethereum, and Tether both in-store and online.
CÉ LA VI
Located in the heart of Downtown Dubai, CÉ LA VI is a renowned restaurant and entertainment venue that accepts a variety of cryptocurrencies, including Bitcoin, Ethereum, Tether, and Tron. It is known for its contemporary Asian cuisine and vibrant nightlife. CÉ LA VI offers a unique experience for crypto enthusiasts looking to enjoy fine dining and entertainment.
Bake N More
Since its establishment in 2021, Bake N More has become a favorite among Dubai’s foodies. This premium bakery and café now accepts Bitcoin, Ethereum, Dogecoin, and Shiba Inu for its artisanal baked goods and beverages.
KISEL Diamonds
KISEL Diamonds, a Dubai-based jeweler, is revolutionizing the luxury jewelry market by accepting Bitcoin and other cryptocurrencies. This jeweler specializes in lab-made diamonds and customized engagement rings. KISEL offers both online and in-store crypto payment options.
February 30
February 30 is a trendy beach club located in Dubai. The beach club also has a restaurant for dining and a lounge area for relaxation. February 30 accepts Bitcoin, Ethereum, Litecoin, and Bitcoin Cash as payments for its services.
Tools Used for Spending Crypto in the UAE
Source: Freepik
Crypto Wallets
A secure crypto wallet is essential for storing and spending digital assets. A good example of a secure crypto wallet is the UPay Wallet. This wallet allows you to securely store cryptocurrencies like Bitcoin, Ethereum, and Tether. It also facilitates transactions through QR codes or payment links.
Crypto Prepaid Cards
Crypto debit and prepaid cards allow users to spend digital assets at traditional retailers by converting crypto to fiat instantly. Companies like UPay offer prepaid cards that can be used at any merchant accepting Visa or Mastercard.
These cards are particularly useful in the UAE, where not all businesses directly accept crypto. For example, you can load your Bitcoin onto a prepaid card and use it to shop at Dubai Mall or pay for a taxi ride.
Bitcoin ATMs
Bitcoin ATMs allow users to buy and sell crypto using cash or bank cards. The UAE has a limited but growing number of Bitcoin ATMs. Dubai is home to most of the Bitcoin ATMs in the UAE. These ATMs are strategically located in high-traffic areas like shopping malls and business districts. They make it convenient for residents and tourists to access digital assets.
Tips for Spending Crypto in the UAE
Source: Freepik
Check Accepted Cryptocurrencies
Not all businesses in the UAE accept every type of cryptocurrency. For example, while Majid Al Futtaim accepts Bitcoin, Ethereum, and Dogecoin, CÉ LA VI Dubai also supports Tether and Tron. Always confirm which digital assets are supported before making a purchase to avoid any inconvenience.
Monitor Transaction Fees
Some businesses may waive transaction fees, and others may charge for crypto transactions. Make sure that you are aware of the potential costs of spending crypto with any merchant. Additionally, using Bitcoin ATMs in Dubai often incurs a fee of 5-10%. Be aware of these costs to ensure you’re getting the best value for your crypto.
Keep Your Wallet Secure
The UAE’s growing crypto ecosystem also attracts cyber threats. Use strong passwords, enable two-factor authentication, and avoid sharing your private keys. For added security, consider using secure wallets like UPay’s Wallet.
Start Small
If you’re new to spending crypto, start with small purchases to get comfortable with the process. For instance, try buying a coffee at Bake N More or a small item at Day to Day Hypermarket before making larger transactions like booking a stay at Palazzo Versace.
Challenges of Spending Crypto in the UAE
Source: Freepik
Although the UAE is a leader in crypto adoption, there are still some challenges to consider:
Volatility
Cryptocurrency prices can fluctuate significantly, affecting the value of your purchases. For example, if you book a room at Palazzo Versace using Bitcoin and the price drops the next day, you may feel like you overpaid. To mitigate this risk, some businesses in the UAE use stablecoins like Tether, which are pegged to the US dollar.
Limited Acceptance
Crypto adoption is growing in Dubai, however, most businesses outside of Dubai do not accept digital assets yet. Smaller retailers and traditional markets may still require cash or card payments in the UAE.
Regulatory Uncertainty
Although the UAE is crypto-friendly, regulations may change, impacting how and where you can spend your digital assets. For instance, VARA recently introduced new guidelines for crypto businesses, which could affect payment processing times or accepted currencies.
Lack of Awareness
Some consumers and businesses in the UAE are still unfamiliar with how crypto payments work. Additionally, crypto adoption in the region is influenced by ongoing discussions about its alignment with Islamic principles. There are particular concerns about its use in gambling or unethical activities.
Conclusion
The UAE’s approach to cryptocurrency has made it one of the most crypto-friendly countries in the world. By eliminating taxes on crypto transactions and establishing clear regulations, the country has encouraged businesses to adopt digital asset payments. This development has allowed residents and visitors to use crypto for everyday purchases, dining, luxury experiences, and even real estate transactions.
Dubai, in particular,.is seen as a hub for crypto spending, with major brands like Majid Al Futtaim, Palazzo Versace, and YallaMarket integrating digital payments. Bitcoin ATMs and crypto prepaid cards have also made transactions more accessible, ensuring that users can easily convert and spend their assets.
However, challenges remain. Price volatility affects purchasing power, and while Dubai leads in crypto adoption, acceptance in other parts of the UAE is still limited. Some businesses and consumers remain unfamiliar with how crypto payments work, and regulatory updates may impact how digital assets are used in the future.
For those looking to make the most of their crypto holdings, the UAE offers a unique environment where digital assets are not just an investment but a practical means of payment.
As more retailers, restaurants, and service providers recognize the benefits of digital assets, crypto spending will become even more seamless.
FAQs
Businesses in the UAE accept a variety of cryptocurrencies, including Bitcoin, Ethereum, Tether, Dogecoin, Tron, and others, depending on the merchant.
Yes, the UAE has a growing number of Bitcoin ATMs, primarily located in Dubai and Abu Dhabi’
No, the UAE has no taxes on cryptocurrency transactions.
Use secure wallets, enable two-factor authentication, monitor transaction fees, and start with small purchases to familiarize yourself with the process.
Tools include crypto wallets (e.g., UPay Wallet), crypto prepaid cards, and Bitcoin ATMs, which facilitate seamless transactions.
