UAE emerges as a pro-Bitcoin mining destination in the Middle East

The United Arab Emirates (UAE) is slowly solidifying its status as a go-to Bitcoin (BTC) mining location in the Middle East. The nation has actually developed itself as a pro-Web3 destination for crypto-focused business with over 30 free trade zones and a growing contribution to the Bitcoin mining hash rate.The UAEs mining journey began with Bitcoin miner Marathon Digital partnering with Zero Two– the digital property arm of Abu Dhabis sovereign wealth fund– in May. The joint endeavor established 2 mining sites with a combined 250-megawatt (MW) capability in Abu Dhabi. Abu Dhabi has become a hub for all kinds of crypto mining activity in the UAE due to its energy effectiveness and status as the center of sell the country.According to data from Hashrate Index, UAEs combined Bitcoin mining capacity is likely around 400 MW– or 4% of Bitcons international hash rate. While the similarity the United States, China, Russia and Kazakhstan are the top 4 countries with the biggest share of Bitcoins international hash rate, the UAE could gradually climb up the ladder due to its available resources.UAE Bitcoin mining summary. Source: Hashrate IndexAs a worldwide player in the energy market, the UAE has actually shifted its focus from its oil and gas reserves towards solar and nuclear energy. Historically, the countrys electricity was created by natural gas, however in the recent past, shares of nuclear and solar are growing rapidly.The UAEs estimated share of electrical energy production. Source: Hashrate IndexUAEs electricity needs change considerably between the hottest and coolest months, leading to a heavy loss of generated electrical power. For example, in 2021, the UAEs combined power and desalination plants lost 20 terawatt hours, equivalent to around $600 million. This gap and wastage of electricity could be filled by Bitcoin miners.Related: Dubai to Abu Dhabi: How NFTs are used in the UAEWith Bitcoin mining concentrated on using tidy energy sources, the UAE might see a significant portion of its energy coming from nuclear and renewable sources in the next decade. Therefore, the surplus from these sources could be used by miners in the nation. To name a few advantages for miners is the countrys zero-tax policy.This indicates Bitcoin miners can register in one of the nations over 30 free trade zones and prevent business tax, value-added tax and import tasks– a considerable advantage over operating in Western countries.Magazine: Crypto City: Guide to Dubai