Travelers from countries like Nigeria, Pakistan, and Argentina often face strict currency controls and limited access to foreign exchange – making it difficult to use their own money abroad. But across major Gulf destinations, digital alternatives like stablecoins are starting to offer a way around those barriers.
As the Middle East pushes to diversify its economy, another shift is taking place at the intersection of tourism and fintech. From Dubai’s luxury resorts to Riyadh’s cultural districts, crypto payments – particularly stablecoins – are gaining traction among tourists and digital nomads.
The shift is gaining momentum not just on the ground but also in the air. Air Arabia, the region’s largest low-cost carrier, recently became the first airline in the Middle East to accept stablecoin payments. In partnership with Al Maryah Community Bank in Abu Dhabi, it now enables customers to book flights using AE Coin – a UAE Dirham–pegged digital currency – via the AEC Wallet App.
“Stablecoins are central to a crucial transition, aligning with broader regional ambitions to modernize finance and boost travel,” Meryem Habibi, CRO of Bitpace, told The Crypto Radio.
The MENA region received an estimated $338.7 billion in on-chain crypto value between July 2023 and June 2024, making it the world’s seventh-largest crypto market, according to Chainalysis.
More than $30 billion in crypto transactions flowed through the UAE, ranking the country among the top 40 globally. “A growing share comes from tourism, hotel bookings, shopping, fine dining, and entertainment,” said Habibi.
“Several restaurants and cafes, particularly in DIFC, have started accepting Bitcoin and Ethereum through licensed payment processors,” Vinayak Mahtani, CEO of bnbme Holiday Homes by Hoteliers, told The Crypto Radio.
“At bnbme, we’re currently in the process of enabling crypto payments via a licensed provider to meet growing guest interest,” he added.
Mahtani believes adoption is driven by forward-thinking businesses and the broader web3 ecosystem in the UAE. “Luxury travelers, digital nomads, and crypto-native tourists are all showing interest,” he said.
Why stablecoins work for global travelers
“Stablecoins are preferred due to their instant settlement, low fees, and price stability – all crucial for international travelers looking to avoid foreign exchange losses and payment delays,” said Habibi.
She added that they help solve long-standing challenges: “For many people across Africa, South Asia, and Latin America, stablecoins offer an opportunity to use their own money abroad freely, securely, and without dependence on traditional banks.”
“They’re solving enduring obstacles for travelers from countries with restrictive foreign exchange controls,” she said.
Mahtani added that fiat-backed stablecoins help minimize volatility – though it remains a concern for some users.
“A traveler from Nairobi, Accra, or Lahore can now arrive in Dubai or Riyadh and pay in USDT or USDC, without relying on intermediaries or converting currency.”
Habibi recalled back in 2022 when Emirates Airlines suspended flights to Nigeria due its inability to repatriate funds, despite the country being among the top five globally in crypto ownership.
“Had stablecoins been accepted, this could have been avoided,” said Habibi.
It was a clear example of how payment restrictions – not a lack of demand – can stall cross-border business, and how digital currencies could offer a more resilient alternative.
From pilot to payment: Stablecoins go public
With some of the world’s most progressive virtual asset rules, Dubai’s Virtual Assets Regulatory Authority (VARA) and Abu Dhabi’s Global Market (ADGM) have positioned the UAE as a leader in crypto regulation. These efforts align with the country’s broader goals under We the UAE 2031 and the Dubai Economic Agenda (D33) to become a global hub for fintech and tourism.
“This legal clarity gave businesses the confidence to adopt stablecoin payments without fear of falling into grey areas,” Habibi said.
Saudi Arabia and Qatar are also accelerating their shift towards digital finance, with the former developing its own framework and the Saudi Central Bank showing interest in digital currencies.
Since the 2022 FIFA World Cup, Qatar’s luxury and sports tourism sectors have begun exploring blockchain payment options, driven by partnerships with Algorand and Crypto.com.
A region ready for crypto travel payments
Habibi believes stablecoins can become a standard in Middle East tourism over the next 10-15 years. “The region already possesses the core ingredients for adoption,” she said, “which are high smartphone penetration, digitally literate populations, strong government support for innovation, and ambitious economic diversification strategies.”
“The Middle East has the appetite to move fast when there’s alignment between business need and regulatory support,” Mahtani agreed.
To reach full adoption, Habibi says three things are necessary: “a consistent and coherent legal framework, facilitating the process for businesses to accept stablecoins without technical hurdles, and educating tourists on how to use digital wallets and store stablecoins securely.”
“With the right support, stablecoins could become as universal as credit cards across Middle Eastern tourism in the coming decade.”
However, Mahtani believes that volatility, limited awareness, and the lack of instant settlement infrastructure remain barriers to mass adoption.
“Banks in Saudi Arabia are still prohibited from processing crypto transactions, so any business wishing to accept stablecoins must work through international channels, which adds regulatory complexity,” he noted.
He added that Qatar “remains more conservative, with crypto use largely restricted,” though regional competition may eventually drive reform.
“Adoption will likely be led by crypto-savvy businesses and tourism operators first,” Mahtani said, “with governments and regulators catching up once a critical mass is reached.”
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