UAE Leads Stablecoin Market with Dollar-Dirham Coexistence

The UAE is gaining ground in the stablecoin market due to its clear regulations, institutional support, and plan to use both dollar- and dirham-backed stablecoins.

Mohammad Nikkar of Arthur D. Little told Coin Edition that the UAE's approach is different from many other countries. Instead of making dollar stablecoins and local-currency stablecoins compete, the UAE sees them as serving different purposes.

The UAE introduced its Central Bank framework for fiat-backed tokens in June 2024, giving companies clear rules before the market became more developed.