In the coming years, an increasing number of companies in the UAE are expected to integrate cryptocurrencies into their salary packages, following a significant ruling by the Dubai court last week. However, industry experts caution that individuals receiving salaries in cryptocurrencies should avoid speculative investments and not allocate substantial portions of their income to these volatile assets. As reported by Khaleej Times, a Dubai court recently mandated a company to settle a worker's unpaid dues in both UAE currency and cryptocurrencies, as stipulated in the labor contract. This decision is seen as a progressive move, given the rapid evolution of financial transactions.
Currently, many global technology companies are already paying a portion of their employees' salaries in cryptocurrency, and this trend is likely to accelerate in the UAE. Industry executives predict that cryptocurrencies will gain wider acceptance as part of the compensation packages offered by companies outside the technology sector. Munaf Ali, co-founder and managing director of Phoenix Group, noted that as regulations around digital currencies and assets advance, more companies will consider offering salaries in cryptocurrencies. Ali also mentioned that his company is exploring the inclusion of cryptocurrencies in employee salaries.
On Wednesday, Phoenix Group, listed on the Abu Dhabi Securities Exchange, and digital asset firm Tether announced plans to launch a stablecoin pegged to the UAE dirham in January 2025. Ali highlighted that the adoption of cryptocurrencies is increasing daily in the UAE and can be used for various transactions, including retail and internet purchases, as well as real estate transactions. He anticipates broader acceptance of cryptocurrencies for salary payments once regulations are in place, citing the benefits of speed and reduced transaction fees.
Paolo Ardoino, CEO of Tether, emphasized the importance of considering cryptocurrencies as a form of salary payment but warned against excessive speculation. He praised the UAE's flexible and innovative approach to digital currencies, contrasting it with the more conservative attitudes of other governments.
