The Abu Dhabi Agriculture and Food Safety Authority of UAE recently issued an advisory prohibiting the use of farms for cryptocurrency mining, with fines of up to 10,000 UAE dirhams for non-compliance. The agency stated that using farms for cryptocurrency mining is a misuse of the land for purposes other than its intended use. Cryptocurrency mining involves using computational power to solve complex mathematical puzzles and validate transactions on blockchain networks, with successful miners being rewarded with newly minted cryptocurrency. The energy-intensive nature of mining likely influenced the decision to restrict such activities on agricultural land.
Despite the specific prohibition on farming for cryptocurrency mining, the UAE has established itself as a supportive jurisdiction for Bitcoin mining. In 2023, the UAE accounted for around 400 megawatts of Bitcoin mining capacity, representing 4% of the global hash rate. This makes the UAE one of the leading Bitcoin mining hubs in the Middle East, highlighting a favorable environment for crypto activities outside of agricultural contexts. While the UAE maintains a generally positive stance towards cryptocurrency, other countries like Kuwait have adopted stricter regulations, banning all cryptocurrency-related operations including mining.
The UAE remains a crypto-friendly country, recording $25 billion in crypto transactions in 2022 and pursuing further investment by adopting accommodative regulatory policies. The country’s political stability and monarchy have been praised as creating a more favorable environment for crypto businesses compared to regulatory challenges in the US. The Middle East is experiencing a surge in crypto adoption, with the UAE leading the region in adoption per capita and reaching peak daily active users of 106,111 in 2024. Saudi Arabia also has a growing number of active users, but slightly higher than the UAE despite its larger population.
The growth in crypto adoption in the Middle East is attributed to evolving views on how cryptocurrency aligns with Islamic beliefs, with attitudes changing as cryptocurrencies become more regulated. Bitget Research forecasts that the number of daily active crypto users in the Middle East will continue to rise, reaching 700,000 by the end of 2024. The UAE is expected to become a central hub for cryptocurrency talent, capital, and enterprises, increasing its global influence in the crypto market. Despite the ban on farming for cryptocurrency mining, the overall crypto landscape in the UAE remains positive and supportive of the industry’s growth.
