Gulf Bitcoin Mining Power Surge: UAE and Oman Target 10% of Global Hashrate Amid State-Backed Expansion

The Middle East has officially transitioned from a passive energy exporter to a dominant force in the global digital economy, with the United Arab Emirates (UAE) and Oman leading a multi-billion dollar charge into Bitcoin mining and institutional staking. As of April 2026, the region’s strategic pivot toward “digital gold” has resulted in the Gulf Cooperation Council (GCC) nations controlling a projected 10% of the global Bitcoin hashrate, backed by sovereign wealth and state-of-the-art immersion cooling infrastructure.

By Michael Nguyen | 2026-04-24

In the high-stakes world of cryptocurrency infrastructure, the narrative of 2026 is no longer about North American dominance or the remnants of the Chinese mining exodus. Instead, the focus has shifted to the scorching deserts of the Arabian Peninsula. Driven by the need for economic diversification and the pursuit of technological sovereignty, nations like the UAE and Oman have integrated Bitcoin mining into their national energy grids. This shift is not merely a private-sector trend but a state-sanctioned movement that combines massive energy surpluses with sophisticated financial regulation.

The UAE’s “Digital Gold” Strategy: Direct Mining and $1.7 Billion Exposure

The United Arab Emirates has emerged as the clear regional leader, moving beyond regulatory frameworks to active participation in the network. According to recent data from early 2026, the UAE government’s direct Bitcoin holdings have reached approximately 6,333 BTC, valued at over $700 million. These assets are primarily generated through Citadel Mining, a state-controlled operation on Al Reem Island, Abu Dhabi, which is linked to the royal family’s International Holding Company (IHC).

Beyond direct mining, the UAE’s sovereign wealth funds have aggressively entered the space through exchange-traded funds (ETFs). By the start of 2026, Abu Dhabi’s Mubadala and Al Warda Investments reported a combined exposure of over $1 billion in Bitcoin, largely held through BlackRock’s iShares Bitcoin Trust (IBIT). This brings the total state-linked exposure to roughly $1.7 billion, signaling a profound level of institutional commitment. On the operational front, the NIP Group (NASDAQ: NIPG) recently confirmed its capacity reached 9.66 EH/s in January 2026, with a final target of 11.3 EH/s to be finalized by the end of this quarter, solidifying its status as the largest miner in the MENA region.

Oman’s Green Frontier: Capturing 7% of Global Hashrate by June 2026

While the UAE focuses on sovereign holdings, the Sultanate of Oman is positioning itself as a hub for sustainable, high-efficiency mining. The Omani government has backed over $1.1 billion in “green” mining infrastructure, leveraging its cooler coastal climates in regions like Salalah and its extensive submarine cable connectivity. Oman’s stated goal is to capture 7% of the global Bitcoin hashrate by June 2026, a target that appears increasingly within reach.

Key players such as Exahertz and Green Data City are driving this expansion. Exahertz currently manages approximately 275 MW of capacity, contributing nearly 10 EH/s to the network. Meanwhile, Green Data City, in partnership with Abu Dhabi’s Phoenix Group, has activated its 150 MW farm. These projects utilize Oman’s renewable energy surplus, particularly during off-peak hours, to stabilize the national grid while generating high-margin digital revenue. The recent Global Digital Mining Summit held in Muscat highlighted Oman’s unique “Hydro-Mining” systems, which have set a new regional standard for efficiency in arid environments.

Technological Prowess: Immersion Cooling Combats the Desert Heat

Mining in the Middle East presents a unique challenge: extreme ambient temperatures that can exceed 50°C (122°F). To overcome this, regional giants like Phoenix Group and Marathon Digital (in their Zero Two joint venture) have pioneered custom immersion cooling technology. Rather than traditional air-cooled fans, ASICs are submerged in non-conductive dielectric fluid, which whisks away heat far more effectively. This allows for overclocking hardware to achieve higher hashrates without the risk of thermal throttling or hardware failure.

The 250 MW joint venture between Marathon and Zero Two in Masdar City and Mina Zayed is a testament to this technical evolution. By utilizing specialized cooling tanks, the facility maintains stable operations even during the peak of the summer. Phoenix Group, listed on the Abu Dhabi Securities Exchange (ADX: PHX), reported its self-mining capacity reached 10.8 EH/s in late 2025 and is on track to hit 13 EH/s by the end of Q1 2026. This technical moat has transformed a geographic disadvantage into a competitive edge, as the fluid-based cooling also protects hardware from the region’s ubiquitous fine desert dust.

Regulated Staking: UAE’s “Staking from Custody” Framework

While Bitcoin mining provides the physical infrastructure, the UAE’s Virtual Assets Regulatory Authority (VARA) has provided the legal infrastructure for Proof-of-Stake (PoS) assets. Under the revised 2025-2026 rulebooks, “Staking from Custody” is now a formally recognized and regulated activity. Only licensed Virtual Asset Service Providers (VASPs) with explicit authorization can offer staking services to the high-net-worth individuals and family offices that dominate the local market.

• Institutional Adoption: Institutional-grade validators like Northstake and Komainu have established local footprints, serving a segment that accounted for over 66% of Dubai’s crypto trading volume in 2025.
• Regulatory Clarity: VARA mandates strict governance and proof-of-reserves, ensuring that staked assets are not re-hypothecated or used for speculative purposes.
• Abu Dhabi’s Edge: The Financial Services Regulatory Authority (FSRA) in ADGM has introduced a distinct regime for custodial staking, although it remains cautious on Liquid Staking Tokens (LSTs), requiring separate, complex approvals for these instruments.

The AI and Mining Convergence: Saudi Arabia’s Multi-Gigawatt Vision

Saudi Arabia has taken a slightly different path, prioritizing a multi-gigawatt vision for AI-ready data centers over public Bitcoin mining. However, the infrastructure being built is inherently compatible with high-performance computing (HPC) and digital asset mining. The Kingdom’s $100 billion AI fund and the NEOM project are at the heart of this strategy. A $5 billion agreement with DataVolt aims to build a 1.5 GW “AI factory” in the Oxagon industrial zone, powered entirely by renewable energy.

In late 2025, the US government eased restrictions on NVIDIA Blackwell GB300 chips, allowing 18,000 units to be shipped to Saudi Arabia. While the state-backed HUMAIN entity is focused on reaching 6.6 GW of compute capacity by 2030, the underlying power infrastructure provides a massive safety valve for the energy grid. Much like the UAE, Saudi Arabia is exploring how “interruptible” mining loads can balance the fluctuations of its massive solar energy projects. While the Saudi Central Bank (SAMA) remains cautious on retail staking, the Kingdom’s “infrastructure-first” approach ensures it will have the power capacity to pivot into global-scale mining or staking whenever the sovereign strategy dictates.

Economic Transformation: From Oil Barrels to Bitcoin Blocks

The convergence of mining, staking, and AI in the Gulf represents the most significant shift in regional energy policy in decades. By converting natural gas and solar energy directly into digital assets, these nations are bypassing the traditional logistics of oil and gas exports. The ability to “export” energy over the internet via the Bitcoin network or AI compute services provides a level of economic resilience that traditional commodities cannot match.

As of April 2026, the Middle East is no longer a peripheral player in the crypto ecosystem. With billions of dollars in state-backed investments, a rigorous regulatory environment that attracts institutional capital, and technical innovations that have tamed the desert environment, the GCC is well on its way to becoming the global heartbeat of the Proof-of-Work and Proof-of-Stake industries. For investors and miners alike, the message is clear: the future of the network is being written in the sands of the Gulf.

Disclaimer: BitcoinsNews.com provides financial news for informational purposes only. Cryptocurrency mining and staking involve significant risks, including hardware depreciation and regulatory changes. Always conduct your own research before committing capital to digital asset infrastructure.

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