The state of crypto adoption in Dubai

by · February 16, 2023

The city of Dubai has been very welcoming to the crypto space, providing much-needed regulatory clarity to help the industry flourish. While this attracts native Web3 and crypto businesses to the emirate, even non-crypto businesses began to integrate technologies into their operations, such as cryptocurrencies, non-fungible tokens (NFTs) and even metaverse.

Cointelegraph explored parts of Dubai to find out how crypto and Web3 technologies have been integrated into some businesses in the emirate.

Ordering groceries with cryptocurrency

Day to Day, one of Dubai’s most popular and affordable grocery chains, announced that it began accepting crypto payments last year. On August 8, local media Khaleej Times reported that the hypermarket has started accepting crypto payments in its online store and several branches across Dubai.

Cointelegraph recently visited the Al Quoz branch and tried using crypto to buy groceries. Despite advertising accepting crypto displayed throughout the store, staff said in-store crypto purchases are not available and instructed Cointelegraph to use the online store instead.

Day to day hypermarkets announce that they accept cryptocurrencies.

Despite the lack of support in a branch, the good news is that crypto users can still trade crypto in the online store. The branch accepts Bitcoin (BTC), Ether (ETH), Tether (USDT) and various other coins as payment for online orders.

Screenshot of the checkout system in Dag Til Dag’s online store. Source: Day to day

Cointelegraph also reached out to the official Day To Day hypermarket team for comment, but did not receive a response.

Luxury cars in the real world and in the metaverse

Dubai appeals to many who want a taste of luxury, and one of the most popular ways to experience luxury is to drive expensive cars. Cointelegraph spoke to a luxury car club based in Dubai that found a way to use NFTs and various Web3 technologies in their business.

Some of Elchai Group’s luxury cars. Photo by: Joanna Alhambra

A luxury project called Elchai Group is bringing luxury cars to the decentralized community through NFTs. Maria Xenofontos, Elchai Group’s head of marketing, told Cointelegraph that NFT holders who are also automatically members of their car club will be able to rent physical exotic cars from Elchai’s car collection. Xenophontos also explained that:

“Our team is bringing a luxury car club to the metaverse. We are already developing The Universe Eye, a metaverse project that will first recreate the city of Dubai. […] The Metaverse will facilitate private events, celebrity concerts and a luxurious showroom for supercars.”

According to Xenofontos, the project also brings their luxury car club to the metaverse and gave Cointelegraph a sneak peek at their metaverse project that recreated one of Dubai’s most popular attractions, the Dubai Eye.

Cointelegraph’s Ezra Reguerra interviews Elchai Group’s Maria Xenofontos. Photo by: Joanna Alhambra

Asked about NFTs, the executive said the space needs more exploration at the moment. “NFT as a form of ownership is something to explore more and I’m sure we’ll see their actual application more in the coming years,” she said.

Cointelegraph’s Ezra Reguerra with Elchai Group’s team members.

Flavio Elia, founder and CEO of Elchai Group, told Cointelegraph the inspiration behind the project. “It’s simple, really. After 20 years in the luxury car business, I wanted to pursue my dream of forming a car club. It is my love of cars and the endless possibilities of the metaverse that have driven me to pursue this project, he said.

Some crypto payment integrations just don’t last

Apart from Day To Day, other businesses in Dubai have also announced various crypto payment integrations in the past year but failed to gain traction. On March 3, 2022, Indian restaurant, The Bhukkad Cafe, announced that it accepted BTC payments. Almost a year later, Cointelegraph visited the store to check if they still accepted Bitcoin. According to the shop staff, they only accept cash or cards.

Related: How the UAE became the Middle East champion of digital assets

On February 16, 2022, media outlet Time Out Dubai reported on a new online restaurant called Doge Burger, which drew inspiration from dog-themed tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB). However, when Cointelegraph attempted to order one of the burgers, the order did not arrive. Exactly one year later, the project’s website is no longer available.

Aside from food businesses, a popular school in Dubai also dipped its toes into crypto payments, but backed out almost immediately. On February 9, Binance announced a partnership with Canadian University Dubai to enable crypto payments within the university. However, less than a day after the announcement, the university backtracked on accepting crypto, citing technical roadblocks.

Despite some projects struggling with crypto integrations, Dubai’s crypto industry is still alive and well. In a recent Cointelegraph interview, Crypto Oasis co-founder Saqr Ereiqat said that many talents from around the world are coming to the United Arab Emirates (UAE) to work in the crypto space.

“We are witnessing an unprecedented migration of talent and capital from around the world to the UAE,” he said. Additionally, the manager highlighted that currently more than 8,300 professionals are working in the Crypto Oasis space alone.