Crypto activity in the Middle East has surged past $500 billion annually, according to a new 2026 Spotlight on Virtual Assets report by financial infrastructure provider Fuze. The findings signal a growing regional appetite for digital assets and tokenized finance.

The report suggests the Middle East is entering a digital renaissance, driven by the tokenization of real-world assets such as real estate and commodities. This market could reach $600 billion by 2030 if current trends continue.

Fuze CEO Mo Ali Yusuf said the momentum reflects a broader shift toward regulated digital finance.

“The region is now responsible for half a trillion dollars in crypto transactions. The UAE is spearheading the digital assets ecosystem, and Saudi Arabia is poised to become one of the world’s leading hubs for tokenization. He added: “Regulations are developing at pace, the infrastructure is ready, and mass adoption amongst enterprises and consumers is imminent. We’re no longer at the countdown phase to what is possible, the rocket has left the launchpad.”

The report also highlights transformation in the remittance sector, a major driver of cross-border money flows in the region. Stablecoins, which are digital tokens pegged to fiat currencies, are emerging as a faster and cheaper alternative to traditional transfers that typically incur fees of 5 to 6 percent. By comparison, stablecoin transfers can reduce costs to around 1 percent and settle in near real time.

Fuze estimates that 7-15 percent of Middle East remittances could be conducted via stablecoins by the end of the decade. PwC projects the GCC’s stablecoin-linked financial services sector to grow at an annual rate of 32 percent, supported by regulatory frameworks under development across the UAE and Saudi Arabia.

However, industry observers caution that while regulation is progressing, questions around governance, security, and interoperability remain. The next phase of growth will depend on how effectively central banks and private players strike a balance between innovation and financial stability.

Yusuf added, “With any new system or product, safety and security are paramount to establish trust. It is why the proactive approaches to regulation that are being taken by central banks and licensing authorities across the Middle East are so crucial in paving the way for enhanced digital financial services and inclusion.”

“Over 2026, businesses and consumers will experience a transformation in the way they move money, propelled by virtual assets. These systems will be faster, cheaper, and more convenient than ever before. It is why we are so bullish about the future of finance in the region,” he said.