With several efforts from the government and other policies, the UAE has sealed its position as a top mining hub and is further attracting crypto firms.
Crypto firms have been flocking to the United Arab Emirates in recent times and for a very special reason. The country has become one of the biggest Bitcoin mining hubs, with solid data supporting the fact. Firstly, the country has over 30 free trade zones, which is favorable for foreign crypto firms.
The country is gradually increasing its contribution to the Bitcoin mining hash rate. It has increased its mining capacity to around 4% of Bitcoin’s global hash rate, which is around 400 megawatts. A global Bitcoin mining firm also established a couple of mining sites in Abu Dhabi in May 2023. The sites had a capacity of 250 megawatts.
Further, the UAE’s energy efficiency and flexible trade policies have also helped it become a mining hub. A report by Hashrate Index states, “The UAE is a business-friendly and entrepreneurial country where the population is curious about new technologies. Due to this innovative spirit, as well as heavily subsidized electricity tariffs for specific sectors, home mining and other small-scale amateur mining setups have been widespread in the country for several years.”
The report also claims the UAE has shifted to cleaner sources of energy in recent years, like nuclear and solar energy. Such initiatives have helped build confidence in the future of its electricity sector. Bitcoin miners could step in to use a portion of the surplus electricity in the future. It could be a win-win situation for both parties.