The UAE has climbed from fifth to second place in the Henley Crypto Adoption Index 2026, behind only Singapore. The country received a 10 out of 10 score for tax friendliness, while Dubai’s dedicated virtual asset regulatory framework was highlighted as one of the factors supporting the UAE’s position as a global digital asset hub. The ranking assesses 36 countries across areas including regulation, taxation, infrastructure, innovation and adoption, reflecting growing competition between global destinations to attract digital asset investors.
Original article: UAE jumps to world No.2 crypto hub with perfect 10 for tax friendliness by Arabian Business.
Key Insights:
UAE Climbs Three Places to Rank Second Globally
The Henley Crypto Adoption Index assesses 36 countries offering residence and citizenship pathways using more than 900 data points covering regulation, taxation, infrastructure, innovation and adoption.
The UAE moved from fifth place in 2025 to second in 2026, placing ahead of Hong Kong, the US and Switzerland. Singapore retained the top position for the fourth consecutive year.
The UAE’s tax environment was a major factor in its ranking, with Henley & Partners awarding the country a 10 out of 10 for tax friendliness and citing the absence of tax on crypto trading, staking and mining.
Dubai’s Regulatory Framework Strengthens the UAE’s Position
Regulatory clarity was also highlighted as an important factor for jurisdictions seeking to attract internationally mobile digital asset investors.
Dubai’s establishment of a standalone regulator for virtual assets in 2022 was referenced alongside regulatory and tax approaches in other major international financial centers, including Singapore and Switzerland.
The UAE also ranked first in Henley & Partners’ separate Wealth Mobility Competitiveness measure, scoring 85.3 out of 100. Singapore ranked second with 79.5, followed by New Zealand at 75.8.
Global Crypto Wealth Reaches $2.6 Trillion
The ranking comes as digital assets represent a significant and increasingly international pool of wealth. Henley & Partners estimates the global cryptocurrency market was worth $2.6 trillion as of August 31, 2026, including approximately $1.6 trillion held in Bitcoin.
The report estimates that 135,694 people worldwide hold at least $1 million in cryptocurrency, including 92,272 Bitcoin millionaires. At the upper end of the market, Henley estimates there are 290 individuals with at least $100 million in crypto assets and 23 crypto billionaires.
Henley introduced a new methodology for its 2026 wealth estimates, meaning the figures are estimates and are not directly comparable with previous editions of the report.
The scale of global crypto wealth provides important context for the index, as jurisdictions increasingly compete to attract internationally mobile digital asset investors through taxation, regulation and financial infrastructure.
What the Ranking Means for the UAE
The UAE’s rise to second place reflects its combination of tax treatment, regulation and infrastructure for digital assets.
For Dubai, the ranking adds to the emirate’s wider positioning as an international financial and business center, supported by a dedicated regulatory framework for the virtual asset sector.
While the ranking does not directly measure property investment or real estate demand, it provides further context around the UAE’s appeal to internationally mobile investors and entrepreneurs operating in digital assets.
