With the rapid growth of cryptocurrency globally, the United Arab Emirates has made a name for itself by becoming one of the biggest hubs to spend crypto. The latest statistics show that the UAE is the most crypto-friendly country, with cryptocurrency revenues expected to grow by 7.89% to $395.80 by 2028, which is up from $292.10 million this year. This will, in turn, create an environment where spending cryptocurrency will become mainstream across the Middle East. UAE provides various spending options, from luxury shopping to everyday purchases. They offer crypto users new ways to leverage their digital assets in the real world.

This guide will dive deep into how to spend your cryptocurrency in the UAE. It will provide some insights on how to get started and even give you practical tips on managing your cryptocurrency. By the end of this guide, you will be able to understand how to navigate the crypto-friendly environment, which will open you up to a world of possibilities for managing and spending your digital wealth.

What is Needed to Spend Cryptocurrency in the UAE?

To effectively spend cryptocurrency in the UAE, you'll need to have certain tools and knowledge at your disposal. These include crypto wallets like CoinCROWD, portfolio management tools like CoinStats, crypto cards, etc. The wallet will act as your bank account. It is there that you will store your digital currency. The portfolio management tools show you real-time data about the prices of different crypto, market cap, volumes, etc. You can use crypto cards to make purchases, just the same way you use bank debit cards.

Use Cryptocurrency Specialized Applications To Make Transactions

Percentage of populations that own a digital currency. Source: Voronoi

You can use specialized crypto payment apps to spend more easily at partner merchants. These applications often come with additional features like crypto-backed debit cards, which can be particularly useful for spending digital assets in the UAE. 30.4% of the country’s population owns at least one cryptocurrency. So, major cities like Dubai have a growing network of cryptocurrency ATMs that provide a convenient way to bridge the gap between the digital and physical financial worlds. This is especially useful for tourists or those who prefer to carry some cash alongside their crypto holdings.

Some UAE businesses offer rewards or cashback for cryptocurrency payments. Look out for these programs to maximize the benefits of your crypto spending. These incentives can add value to your transactions and encourage more frequent use of digital currencies for everyday purchases.

How to Spend Cryptocurrency in the United Arab Emirates

The UAE has been proactive in integrating digital currency into its economy. Thanks to this, spending crypto in the UAE has increasingly become easier. There are several vital steps you, as a cryptocurrency user, need to follow to ensure you have a smooth transaction.

STEP1: Check Cryptocurrency Compatibility at the Place You Are in UAE

The different bodies that regulate crypto in the UAE. Source: KYCHub

The first thing you need to understand is the compatibility of the cryptocurrency you need to transact. While famous cryptos like Bitcoin and Ethereum are widely accepted, the good news is that the UAE also accepts other major cryptocurrencies. The Securities and Commodities Authority (SCA) is the body that regulates crypto assets in the country. This includes the offering, issuing, listing, and trading crypto assets. So, you have to check out and keep up with these regulations. Check and confirm the type of cryptocurrency the merchant accepts. Some accept just BTC, some ETH, and some accept others. You can save a lot of time if you know the exact currency they accept because you must have converted to that before starting the transaction. You can use a tool like coinCROWD to convert your crypto to dirhams.

Step 2: Set Up Your Cryptocurrency Wallet

After knowing if your cryptocurrency is compatible, the next crucial step is to set up your crypto wallet. There are two popular options you can use to set up your wallet, and that includes custodial and noncustodial wallets. A third party hosts custodial wallets and they are the ones keeping your keys for you. Noncustodial wallets are ones you take responsibility for securing your keys. This is the type that most cryptocurrency wallets, like CoinCROWD, are. The good thing about these wallets is that they provide maximum security. To set up your wallet, download the app, register, get your private key, keep it safe, and load it with cryptocurrencies

Step 3: Look For Business That Accept Cryptocurrency Payments

Cafe Beirut’s website.

After setting up your crypto wallet, the most convenient step is to find a crypto-friendly merchant. That is, you should look for businesses that accept cryptocurrency, like like Cafe Beirut and Meta Terrace. It is easy to find these merchants in UAE as most of them display the crypto logos on physical locations or websites. Transacting is also easy because when you're ready to make a purchase, you can just scan a QR code provided by the merchant or enter their wallet address manually.

Step 4: Confirm the Recipient’s Address and Amount Paid

Before finalizing any transaction, it's important to double-check the amount and recipient address. Once confirmed, the transaction is processed on the blockchain. Some merchants may accept the transaction immediately, while others might wait for one or more confirmations. For tax purposes and personal accounting, it's wise to maintain records of all your crypto transactions. This practice will help you stay organized and compliant with any reporting requirements that may apply to cryptocurrency use in the UAE.

Best Ways to Spend Cryptocurrency in Dubai

In recent days and ages, Dubai has turned out to be one of the best cryptocurrency transaction centers. With more establishments in the region accepting crypto payments, people are becoming increasingly curious about the exact places where they can spend this digital currency. Currently, there are so many places where you can spend crypto perfectly in Dubai, like the following:

Spend Your Crypto in Hotels, Restaurants, and Other Shops

Dubai as a city is at the center of evolution, and this is characterized by its firm connection with cryptocurrency. As time has gone by, there are many establishments in the city that have started to accept crypto payments and many more are likely to follow suit in the coming days.

A Breaking Bread advert announces that they now accept crypto as a mode of payment. Source: Breaking Bread

As a Dubai traveler, you can now spend your digital currency in high-end hotels like the Manor Hotel by JA and use it to buy your favorite gold coffee at famous restaurants in the desert city like Breaking Bread. Dubai continues to grow and embrace modern ways of payment, and crypto is increasingly becoming a common mode of payment in the city.

Use Crypto to Pay For Car Rental Services and Airline Tickets

Kings Rental Cars’s website. 

Dubai now offers a wide range of areas where you can use crypto to make payments. For instance, there are many car rental companies in Dubai that accept crypto as a mode of payment, like Kings Rental Cars. That is not all; some airline companies, like Emirates, even allow crypto payments.

Dubai is making all these changes and adjustments in its bid to become the region’s business hub. By allowing crypto payments, Dubai now offers more than one way of payment, tending to the diverse needs of many of its visitors from across the globe.

Convert Crypto into Cash

There are many ways to use crypto in Dubai.  For instance, you can convert your coin to cash through coinCROWD and use it the usual way people use cash in Dubai. There are physical stores in the city, like Coinsfera, that make such transactions possible. These merchants have many stores spread across Dubai where you can go with your coin and turn it into actual cash, which you can later use in a way that suits you.

Buy Stocks Using Crypto in Dubai

One of the ways to use crypto is by buying stocks in highly valued and rated companies in the region. Instead of using actual cash, Dubai now makes it possible to buy stocks in many companies using crypto. This move is seen as a way of trying to enable as many people as possible to invest in Dubai stocks by making it easy and flexible.

Buy Real Estate in Dubai Using Crypto

Dubai Properties’ website.

Dubai has seen a surge in the number of real estate transactions in recent years.  Many of these transactions now involve using crypto, a modern, safe, and efficient mode of payment. Due to its efficiency, real estate companies in Dubai, like the Dubai Properties, are now embracing it as a form and mode of payment.

It is now possible to buy real estate in Dubai using cryptocurrency. The move by the city to allow cryptocurrency real estate payments is to make real estate investment in Dubai as easy and flexible as possible. By allowing cryptocurrency payment, Dubai hopes to increase the real estate investment opportunities in the city and use it to make it a real estate investment hub in the region.

Conclusion

By following the provided guidelines and procedures, you can confidently navigate the world of cryptocurrency spending in the UAE. As the country continues to embrace digital currencies, opportunities for using crypto in everyday life will likely expand, making it an exciting time for crypto enthusiasts in the region. Always stay informed about the latest developments in regulations and technology to make the most of your cryptocurrency experience in the UAE.

FAQs

Can I pay taxes using cryptocurrency in the UAE? 

No, as of now, the UAE does not accept cryptocurrency for tax payments. All taxes, if applicable, must be paid using traditional fiat currency.

Are there any additional fees for using cryptocurrency in the UAE? 

Some crypto payment gateways or platforms may charge transaction fees or conversion fees when you spend cryptocurrency. Always check the terms with the wallet or service provider you're using.

Can tourists spend cryptocurrency in the UAE? 

Yes, tourists can use cryptocurrency for various purchases in the UAE, especially in cities like Dubai, where crypto is widely accepted. Make sure to use compatible crypto wallets and payment apps.

Is cryptocurrency spending subject to VAT in the UAE? 

No, VAT does not apply to goods and services purchased with cryptocurrency, like when using traditional currencies.

Are there any legal risks associated with spending crypto in the UAE? 

The UAE is crypto-friendly, but it's essential to stay updated on regulations as crypto-related rules can evolve. Always use licensed and reputable platforms to avoid any legal complications.