Rami Alsridi
Over the past decade, Bitcoin has gained recognition as a significant asset class, capturing the attention of investors and institutions worldwide. At the heart of this decentralized network lies Bitcoin mining—a fundamental process that ensures the blockchain remains secure and immutable. Industry experts understand its critical role in maintaining the integrity of the system. Traditionally, mining operations have been dominated by nations like China, the United States, and Kazakhstan. However, a new powerhouse is emerging—the Middle East—positioning itself as a formidable force in the global mining landscape.
Bitcoin mining is the mechanism through which transactions are validated and added to the blockchain. Miners use computational power to solve complex mathematical problems, securing the network and earning Bitcoin as a reward. But mining isn’t just about profit—it underpins the very trust model of Bitcoin. Without it, the system cannot function. However, it comes at a cost: significant energy consumption. The network’s estimated 175+ TWh annual electricity usage rivals that of entire countries like Poland or Argentina.
This is where the Middle East brings unique advantages. With vast reserves of underutilized energy—both fossil and renewable—the region can support mining in a cost-effective and increasingly sustainable way. The UAE, for instance, is targeting 50% clean energy by 2050, while Saudi Arabia’s Vision 2030 features ambitious renewable energy infrastructure plans. Bitcoin mining can also serve as a strategic buyer of last resort by absorbing surplus energy during idle hours and steadying grids. Oman, for instance, has spent over $800 million in crypto mining projects in partnership with various energy players. In the Middle East, countries are also now investing heavily in mining infrastructure, turning flare gas from oil fields into electricity for powering mining rigs—reducing carbon emissions while monetizing otherwise wasted energy.
Regulatory clarity is another key enabler. The UAE’s proactive stance, led by authorities like VARA and ADGM, offers businesses legal certainty while encouraging innovation. Today, the UAE hosts over 400 MW of mining capacity, accounting for approximately 4% of the global hashrate—a remarkable rise in a short span.
Future Trends and What to Expect
As we head toward the 2028 halving cycle, efficiency, sustainability, and jurisdictional support will determine who thrives in the mining space. The Middle East is poised to lead—not just through scale, but by pioneering responsible mining.
Equally important is the rise of community mining. By enabling individuals and small players to participate collectively via decentralized mining platforms, the region can further democratize access to Bitcoin and reduce hashrate centralization—a core value of the network’s original vision. This model not only aligns with financial inclusion goals but also amplifies local engagement in the digital asset ecosystem.
Through spending on infrastructure, prioritizing ESG compliance, and pursuing a tech-savvy approach, the Middle East can build more than just mining farms – it can build the future of the decentralized economy. As a technologist and entrepreneur watching this unfold from within the region, I’m optimistic. The convergence of energy, regulation, and innovation here is not coincidental, but strategic. And as has been shown in our history, those who innovate at the infrastructural level usually set the agenda for the future.
Rami Alsridi is the founder and CEO of Mining Grid.
Disclaimer
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