Cryptocurrency industry giants have flocked to Abu Dhabi, desperately seeking funding to revitalize the sluggish market. As Bitcoin loses momentum since October and the industry faces an unexpected downturn, key figures ranging from MicroStrategy founder Michael Saylor to Binance founder CZ have appeared in the UAE capital, hoping to secure financial support from deep-pocketed local investors.
According to a Wall Street Journal report on Sunday, cryptocurrency executives were busy traveling between various venues last week, from a Bitcoin Middle East conference to a "whale-only" beach club dinner and a champagne party on a superyacht, actively seeking contact with representatives of the UAE sovereign wealth fund. Representatives from the UAE sovereign wealth fund, which manages $330 billion in assets, were reportedly present at the events.
Interest in cryptocurrencies continues to grow in the UAE. Binance received full approval last week from Abu Dhabi's financial regulator to operate a global trading platform from there. A division of the sovereign wealth fund Mubadala disclosed in November that it had tripled its Bitcoin investments, building a position worth approximately $518 million, while also holding an additional $567 million in Bitcoin positions through ETFs.
Venture capital firm RockawayX, which described the UAE as "the new Wall Street of digital finance" in a presentation, has just announced its acquisition by an Abu Dhabi-backed company. However, industry insiders caution that securing funding from the UAE typically requires years of relationship building and local business commitments, rather than a simple "drop-in and run" transaction.
Industry giants bet on Middle Eastern capital
Amid a sluggish market, cryptocurrency industry leaders are pinning their hopes on investors in the United Arab Emirates. Michael Saylor, founder of MicroStrategy, stated at a Bitcoin Middle East conference that he has been pitching plans to "hundreds of investors" in the Gulf region—including sovereign wealth funds—to accumulate more digital currency through various financial instruments. The company's stock price has fallen by more than half since the middle of the year.
Saylor's presentation depicted MicroStrategy as a Bitcoin-powered space rocket aiming to achieve a "$20 trillion vision." Meanwhile, the president of Metaplanet, a Japanese hotel operator that has transformed into a Bitcoin hoarder, stated on stage that the company is seeking to raise funds through a new preferred stock program called "MARS," and the company's stock price also fell sharply.
Other players seeking opportunities include Dominari Holdings, the Trump family's preferred investment bank, and the investment and securities arm of South Korea's Hanwha Group, which has stated its intention to use Abu Dhabi as a regional hub for its foray into crypto products.
US policy setbacks drive capital outflows
The cryptocurrency market's downturn caught the industry off guard. Many participants had anticipated that Trump's full support for the sector would drive accelerated adoption and unlimited profits. However, while the US stock market remained near record highs, Bitcoin lost momentum in October, with a series of market liquidations severely impacting traders and exchanges.
Trump's cryptocurrency legislation agenda has also encountered setbacks, with some Democratic lawmakers putting the brakes on a new bill to create a regulatory framework for the digital currency market. This policy uncertainty has further driven industry funds to seek overseas opportunities.
In contrast, the UAE's interest in cryptocurrencies continues to grow. Earlier this year, the UAE's state-backed investment company purchased a $2 billion stake in Binance, providing significant financial backing for the world's largest cryptocurrency exchange.
Abu Dhabi to build crypto finance hub
The UAE is systematically positioning itself as a global cryptocurrency hub. The Abu Dhabi government is attracting cryptocurrency startups to set up operations in the city's financial center by offering early-stage funding, free office space, and other incentives.
"Liquidity, policymakers, and infrastructure are all here," said Kristiina Lumeste, founder of Abu Dhabi-based venture capital firm Klumi Ventures, which is raising a $100 million cryptocurrency-focused fund from local investors.
At the Abu Dhabi Financial Week conference, executives from US blue-chip crypto companies Coinbase and Circle mingled with Wall Street figures—including Bridgewater Associates founder Ray Dalio and Blackstone CEO Steve Schwarzman—as well as representatives from traditional banking giants such as UBS and HSBC. The Crown Prince of Abu Dhabi attended the opening ceremony, and senior executives from Mubadala and other sovereign wealth funds also participated in the event.
Localization becomes key to investment
Despite the numerous opportunities, securing funding from the UAE is no easy feat. Basil Al Askari, co-founder of MidChains, an Abu Dhabi-based cryptocurrency brokerage backed by Mubadala, points out that many newcomers to the UAE are looking to quickly close deals and return home.
He observed that some people made a “newbie mistake” by assuming someone worked for a major UAE investment firm simply because they looked Emiratis and were wearing a traditional robe. Al Askari emphasized that, with a few exceptions, persuading sovereign wealth funds or large family offices to invest typically requires years of relationship building and a commitment to developing a local business.
“They’re not looking for people who parachute in, take the money, and leave,” said Samantha Bohbot, Chief Growth Officer of RockawayX. “You have to have a real stake and stick with it.” The company, which had established its headquarters and a local crypto project incubator in the UAE, subsequently announced its acquisition by an Abu Dhabi-backed firm.
