Majority of the 80,000 new business licenses in Saudi Arabia are blockchain and AI

Majority of the 80,000 new business licenses in Saudi Arabia are blockchain and AI

Of the 80,000 new business commercial licenses registered in Q2 of 2025 in Saudi Arabia most of them are in high growth industries such as Blockchain, AI, and Big data analytics. The total number of valid business records in KSA is now 1.72 million. Saudi Arabia witnessed 34% growth in AI commercial registrations, and 51% growth in Blockchain commercial registrations with over 4,000 companies now registered in the country.

The figures were provided by the Saudi Ministry of Commerce Quarterly Business sector bulletin. The bulletin also noted that there was growth in financial services sector, insurance, gaming and entertainment as well.

Through the National Transformation Program, the Kingdom is investing in infrastructure, digitalization, and regulatory improvements to attract investment and spur entrepreneurship nationwide.

Citing Minister of Commerce Majed Al-Qasabi, the bulletin stated: “The rectification is part of a broader set of measures aimed at combating commercial concealment, which remains one of the key challenges hindering the growth of the local economy.”

It added that the minister said the ministry has recently worked on rectifying the status of commercial registrations and updating their data to ensure compliance with regulations and to enhance market transparency.

Riyadh accounted for the largest share of new registrations during the quarter with 28,181 licenses, followed by Makkah with 14,498, the Eastern Province with 12,985, and Qassim with 4,920. Asir, which has been gaining prominence as an investment destination, recorded 3,875 new commercial records.

The second quarter also saw the implementation of the newly approved Commercial Register Law and Trade Names Law. These reforms have eliminated the need for separate subsidiary registrations by allowing businesses to operate under a single commercial record across the nation, regardless of their geographic location.

The changes are intended to simplify licensing, reduce administrative burden, and improve the overall ease of doing business in the Kingdom.

Several sectors experienced strong year-on-year growth. Registrations related to cloud data storage and analytics increased by 48 percent, reaching 5,894 records, with Riyadh leading the way at 3,775. Activities related to artificial intelligence increased by 34 percent, resulting in 14,409 new records, of which 8,909 were registered in the capital.

Women’s participation in the commercial sector continued to rise, with female entrepreneurs accounting for 49 percent of newly issued commercial records.

Investor interest from abroad also surged, with registrations by foreign and GCC investors rising by 38 percent in the second quarter to more than 70,000 new records. Of these, 38,640 registrations were made by foreign nationals and 31,488 by regional Gulf investors.

The Abu Dhabi Securities Exchange to list first ever MENA blockchain based digital bond

The Abu Dhabi Securities Exchange to list first ever MENA blockchain based digital bond

Abu Dhabi Securities Exchange (ADX), the largest exchange in the UAE and second largest exchange in the Middle East North Africa (MENA), has started the pricing stage as an initial step towards listing the first ever DLT ( Distributed Ledger Technology)/ Blockchain digital bond in the MENA region.

As per the announcement the DLT digital bond will be issued by First Abu Dhabi Bank (FAB) using HSBC Orion, digital asset platform. The listing on ADX is a collaboration of all three entities powered by HSBC Orion which is operated by the Central Moneymarkets Unit (CMU) in Hong Kong, and structured with support from leading international law firms, reflecting the high standard of governance.

HSBC Orion has led the way in the digitalisation of the capital market infrastructure. It facilitated the launch of the European Investment Bank’s first-ever digital bond in pound sterling2, and the world’s first multi-currency digital bond offering as well as the largest digital bond issuance for the HKSAR Government. HSBC is also the first bank in the world to offer tokenized ownership in physical gold.

Global investors can access the digital bond through accounts held with CMU, Euroclear and Clearstream, onboarding onto HSBC Orion as direct participant, or via their existing custodian who can participate through one of the above options.

Introducing the digital bond into ADX’s growing list of financial products supports its broader ambition to offer innovative financial instruments and signifies the Exchange’s pioneering role in introducing tokenized finance. Digital bonds, fixed-income securities issued and recorded on blockchain technology, offer operational efficiencies, improved settlement cycles, reduced counterparty risk, improved security and enhanced transparency for institutional investors.

HSBC acted as the sole global coordinator, lead manager and bookrunner on the transaction, and played a central role in bringing the end-to-end blockchain-based issuance to the MENA region.

Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, said, “The successful issuance of MENA’s first blockchain-based digital bond, in close collaboration with FAB and HSBC, marks a defining moment in our journey to transform capital markets through innovation. ADX was central in facilitating this milestone, ensuring the bond’s seamless integration with existing post-trade infrastructure and compatibility with global settlement standards.”

He added that this initiative not only expands access to institutional grade digital instruments but lays the foundation for broader class of tokenized assets which include green bonds, sukuk, real estate linked products and more. He noted, ” It reinforces Abu Dhabi’s position as a leading global financial centre. It aligns with the UAE’s national agenda to build a diversified, technology-driven capital market anchored in transparency, resilience, and long-term growth.”

Lars Kramer, Group Chief Financial Officer at First Abu Dhabi Bank (FAB), also explained, “This milestone marks a significant advancement in our innovation journey, establishing FAB as the issuer for the first blockchain-based digital bond in the MENA region. Together with ADX and HSBC, we are setting new benchmarks in efficiency, transparency, and security, while aligning with the UAE’s progressive regulatory framework. We are supporting investors navigate the global digital assets landscape. This bond issuance accelerates the development of a robust digital capital markets ecosystem in the UAE.”

Mohamed Al Marzooqi, Chief Executive Officer, UAE, HSBC Bank Middle East Limited, added that the successful launch of MENA’s first digital bond on ADX using HSBC Orion shows how they are transforming the promise of tokenization into reality within the MENA region. He explains, “This is a significant milestone towards a future where digital assets become a mainstream part of the Middle East’s financial landscape.”

This comes after the Securities and Commodities Authority in UAE issued its security and commodity token regulation.

Equivator invests $8 million in GCC Related a loyalty rewards company

Equivator invests $8 million in GCC Related a loyalty rewards company

United Kingdom and Saudi Arabian Equivator, a premier alternative investment firm, has made a strategic investment of $8 million in UAE headquartered Related, where the funds will be used to launch AI and Blockchain solutions and expand into the United Kingdom.

As per the press release, the investment underscores Equivator’s commitment to nurturing groundbreaking ventures within high-growth sectors. It is aimed at accelerating Related’s expansion in the Kingdom, boosting innovation, and fast-tracking the launch of transformative solutions in AI, blockchain, and customer experience.

It also strengthens Related’s position as the company of choice for loyalty and rewards in Saudi Arabia and the broader Middle East and North Africa (MENA) region. The alliance aligns with Saudi Arabia’s wider economic diversification goals and its rapid digital transformation under Vision 2030.

Related currently services more than 30 million users across the GCC and Levant, powering loyalty programs for leading institutions in telecommunications, banking, retail, utilities, and entertainment.

“We are thrilled to welcome Equivator as a strategic partner on our journey to redefine loyalty and engagement in the region,” said Rabih Farhat, CEO of Related. “This partnership is more than a transaction; it’s a transformation, a joint mission to reshape the future of fintech-powered loyalty solutions in line with the Kingdom’s innovation agenda.”

The investment builds upon Equivator’s earlier involvement in the loyalty-focused B2C space through its prior investment in Uplines. In a decisive move, Related has acquired Uplines in full, integrating it into its broader strategic framework and setting the stage for a bold relaunch. As part of the development strategy, Related will introduce a range of new products and offerings, from Advanced AI tools to blockchain-enabled rewards platforms, gamification features and payments. These will enhance B2B and B2C experiences while unlocking value for brands and consumers alike.

“This is more than an investment. it’s a strategic deal to build a regional champion in loyalty and digital payments,” stated Enes Şehzade, CEO at Equivator. “Together, we aim to power a new era of data-driven customer engagement and reward invention.”

Equivator will support Related’s market entry into Europe and beyond while helping establish initiatives such as the “Related Loyalty & Fintech Authority”, a new regional knowledge and policy forum further solidifying Related’s leadership.

UAE Bank looking to build DeFi and Stablecoin infrastructure

UAE Bank looking to build DeFi and Stablecoin infrastructure

Axiom Recruit in the UAE, is searching for a Principle Blockchain Architect engineer as a leading UAE Bank is building out their DeFi and Stablecoin infrastructure.

As per the LinkedIn post, the bank is building this infrastructure for wider blockchain related deployment and is seeking a principle engineer, blockchain architect to define and build their DeFi and stablecoin architecture.

The role will be the first for the bank in its DeFi focused engineering build. The Blockchain architect engineer will design and implement a secure wallet system, as well as build smart contracts and DeFi tooling from the ground up, including interoperable cross-chain and L2 solutions.

Also in the pipeline is tokenization systems for banking infrastructure and collaboration on enterprise crypto services.

This announcement comes as more and more banks globally and across the UAE enter the digital asset, stablecoin, and crypto space. In a recent article crypto exchange executives and crypto custodian executive weighed in on how this will effect the crypto ecosystem across the globe.

In the UAE several banks have already entered the crypto space including Mbank, Zand Bank, Liv bank by Emirates NBD and even FAB bank with their work on a stablecoin.

DFSA starts second phase of tokenization testing license program

DFSA starts second phase of tokenization testing license program

The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), has started the next phase of its Tokenization Regulatory Sandbox, beginning engagement with firms selected to join its Innovation Testing License program, the DFSA’s regulatory sandbox that allows entities to test innovative financial products and services under a controlled environment.

As per the press release, The DFSA’s Tokenization Regulatory Sandbox, launched in March 2025, received 96 expressions of interest from across the United Arab Emirates, United Kingdom, European Union, Canada, Singapore, and Hong Kong. The launch of the sandbox marks a major step forward in the DFSA’s strategy to support responsible financial innovation within the DIFC and reflects its growing focus on tokenization as a transformative force in financial services.

Applications included proposals to tokenize financial assets and instruments, such as bonds (including Islamic bonds, or sukuk), units in a fund (including money market funds and property funds), and the trading and safe custody of those assets. The initiative attracted strong interest from both established financial institutions wishing to explore tokenization use cases and innovative start-ups looking to scale breakthrough digital asset solutions in a regulated environment.

Speaking at the DFSA’s Policy & Legal Roundtable, Charlotte Robins, Managing Director, Policy & Legal, said, “The global interest in our Tokenization Regulatory Sandbox signals the importance of, and growing appetite for, responsible innovation, and recognizes the appeal of DFSA’s regulatory approach to innovation. As a regulator, our role is to support innovation and its positive contribution to the financial markets in ways that maintain market integrity and protect the public interest within the DIFC. By working closely with local and global firms through the sandbox, we are encouraging responsible innovation and helping to ensure that new ideas are tested against regulatory expectations.”

Following a detailed review, applicants were assessed based on their business model, clarity of use case, and readiness to test. Some firms were invited into the sandbox for live testing under the Innovation Testing Licence, while others were considered suitable for full authorisation under existing rules due to the maturity of their operations and experience in other regulated jurisdictions.

The DFSA will now work with the firms selected for the Innovation Testing Licence to co-develop bespoke testing plans. Sandbox participants will begin trials within a controlled environment in the coming weeks. The outcomes from this cohort will help inform future regulatory policy and potential refinements to the DFSA’s evolving digital assets and broader innovation frameworks.

The first Universal Basic Ownership pilot starts at Machine Economy Free Zone

The first Universal Basic Ownership pilot starts at Machine Economy Free Zone

peaq a global computer with borderless, decentralized, digital infrastructure for real-world apps. has partnered with Pulsar Group, an advisory firm in Abu Dhabi to launch a Machine Economy Free Zone (MEFZ), a dedicated sandbox environment for the Machine Economy in the UAE which The MEFZ will also include the world’s first pilot of “Universal Basic Ownership (UBO). To support the free zone, peaq is setting up its official HQ in the UAE to support the Machine Economy Free Zone on the ground

According to the peaq post, all around us, machines are already doing the work, driving, farming, scanning, delivering, answering our prompts. They’re creating real-world value, every second of every day. But turning the rise of the robots into a human-centric, decentralized economy — one where people can co-own, govern, and earn from the infrastructure that runs the world takes more than just code. It takes regulation, incentives, and physical and digital spaces to test and build.‍

The Machine Economy is a society in which humans and machines co-exist, co-create value, and thrive together in the Age of Abundance. It’s a human-centric economic paradigm where machines provide goods and services, earn income, and interact directly with people, businesses, and each other. Powered by AI and running on Web3, these machines can operate both autonomously and independently, generate real-world value, and share that value with the communities they serve.

The Machine Economy Free Zone sandbox will combine regulation, machine and infrastructure deployment, research, and investment in one place. A space for founders and policymakers to test, deploy, and scale new ideas for how humans and machines can build a future that works for all humans – and one day, for conscious machines too.

“We’re honored to be part of peaq’s transformative journey. peaq is redefining what’s possible for the future of the Machine Economy. By boldly bridging the physical and digital worlds through a decentralized, scalable, and sustainable Layer-1 blockchain, peaq is laying the foundation for a new era of real-world connectivity and autonomy. This is more than technology — it’s a movement, and we’re proud to help shape what comes next.” said Alyazi Al Khattal, CEO of Pulsar.
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Machine Economy Free Zone sandbox will focus on four key pillars

Regulation: As part of the MEFZ, peaq is working on the development and testing of a range of regulatory initiatives and sandboxes, such as compliant tokenization and investment into autonomous machines and robots.
Deployment: peaq is working with Emirati partners to set up physical and virtual sandboxes where founders can experiment with new business models and deploy apps, devices and technologies aimed at powering more advanced smart cities.
Investment: peaq is connecting top apps (DePINs) on peaq with the most visionary investment bodies and institutional partners in the region, enabling them to scale and deploy at lightning speed.
Innovation Hub: peaq is establishing a regional innovation hub focused on supporting DePIN (Decentralized Physical Infrastructure Network) apps in research and development, deployment, and connection with organizations interested in the value these apps provide.
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Among the first initiatives to be tested in the MEFZ is a framework for Machine Tokenization. This framework aims to make it easy for anyone to invest in robots and machines, from autonomous vehicles to vertical farms. It’s a key piece of Machine DeFi, peaq’s vision for a decentralized financial system where people can co-own and earn from real-world machines as they operate and generate value.

The MEFZ will also include the world’s first pilot of “Universal Basic Ownership (UBO)”. UBO explores how machine-generated income can be distributed directly to the communities affected by automation. No middlemen, no red tape just machines generating value, and people receiving a share of it.

Both of these initiatives will be tested, refined, and scaled in the Machine Economy Free Zone.

‍“The Machine Economy is no longer a far-fetched dream, it is a reality quickly shaping up before our very eyes. peaq makes this transformation work for everyone and the Emirates, as one of the most innovative nations in the world, is the perfect place to pilot this vision, setting a template and example for the rest of the world”, noted Till Wendler, co-founder of peaq
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Allo Blockchain to pilot digital identity and RWA tokenization in Qatar

Allo Blockchain to pilot digital identity and RWA tokenization in Qatar

After being admitted to Qatar’s Digital Assets Lab, Allo, a blockchain tokenization platform has announced that it will begin piloting initiatives in areas such as secure digital identity systems as well as tokenization of real world assets.

By working within the Qatar Digital Assets Lab, Allo is able to fine-tune its blockchain technologies to meet the specific demands of local markets. This includes use cases such as Islamic finance, regional data protection standards, and tokenized assets.

According to Allo, the opportunity to build and test under regulatory guidance is relatively rare and enables developers to refine applications in alignment with both legal and market realities.

Allo not only is focusing solely on technical development, it is also collaborating for, security, and regulatory adaptability. Allo’s participation supports efforts to ensure that blockchain tools are accessible, secure, and tailored to real-world financial inclusion and risk mitigation needs.

The goal is to generate actionable insights on how distributed ledger technology can strengthen financial infrastructure while maintaining compliance with regulatory frameworks.

Other partners at Qatar Digital Asset Lab such as The Hashgraph Association, are also working on five tokenization use cases.

Dubai VARA sees tokenization as a new kind of financial system

Dubai VARA sees tokenization as a new kind of financial system

Mathew White, CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), recently noted on LinkedIn that the tokenization of real-world assets (RWAs) is no longer an experiment. He stated, “It’s happening right now.”

He explained how VARA views tokenization as more than a blockchain use case but rather as a structural shift and the foundation for a new kind of financial system. He explains, ” Everything from real estate and art to commodities and IP can be digitally represented, owned and exchanged in real time.”

He adds, “It’s a system of fractional ownership and near-instant settlement, where global markets are trustless, borderless, and always on. The illiquid can become liquid.”

He gives the example of BlackRock which sees tokenization as a democratization of investing. Its CEO Larry Fink envisions a world where every asset can be tokenized from stocks and bonds to entire funds.

The global tokenisation market was valued at $3.32 billion in 2024 and is projected grow to nearly $13 billion in 2032 – a CAGR of 18.3%.

He goes on to say that in Dubai, tokenized RWAs are a policy priority. He explains, “We’re building the infrastructure to make it all real – credible rules, secure frameworks, trusted intermediaries. We’re enabling the shift from analogue finance to digital ecosystems where anyone – regardless of size or geography – can participate, invest, and grow. Technology alone won’t deliver the future we want. It needs governance, credibility, guardrails, and trust.”

He notes that VARA is committed to creating a gold standard for oversight – a regulatory regime that’s clear, credible, and agile. “The idea is to protect without paralyzing. To not only supervise innovation, but to accelerate it.”

In his final words he says that Dubai intends to lead from the front.

Already Dubai has stated with the successful tokenization of real estate project with Dubai Land Department that happened a few weeks ago. In addition, the UAE Securities and Commodities Authority has licensed Emirates Coin Investment LLC (EmCoin) based out of Abu Dhabi UAE, as the first regulated integrated investment platform to offer both crypto investments as well as traditional assets such as equities, commodities, and even ICOs.

Regulated by the UAE Securities and Commodities Authority, Emirates Coin Investment will be able to serve the entire UAE.

Ctrl Alt tokenization platform gets licensed in UAE

Ctrl Alt tokenization platform gets licensed in UAE

Ctrl Alt, a tokenization infrastructure platform, has secured a Virtual asset broker dealer license as well as issuer license from Dubai’s Virtual Assets Regulatory Authority (VARA). As of May 1, 2025, Ctrl Alt has tokenized over $295 million in assets, spanning real estate, private credit, funds, litigation finance and more.

As per the press release Ctrl Alt is the first VASP authorized to conduct issuer-related services. This milestone marks a significant step in Ctrl Alt’s global expansion and highlights its commitment to operating within robust regulatory frameworks. The virtual asset issuer license allows Ctrl Alt to operate a full-stack, regulatory-compliant platform for the creation, management and distribution of tokenized real-world assets and ARVA tokens.

ARVA tokens are defined under Dubai law as representing direct or indirect ownership of real-world assets, granting entitlement to receive or share income and purporting to maintain a stable value by reference to real-world assets or income. ARVA tokens are also backed or collateralized by such real-world assets or constitute a derivative, wrapped, duplicated, or fractionalized version of another ARVA.

Ctrl Alt recently demonstrated its solution with its partnership with Dubai Land Department for their real estate tokenization project. Ctrl Alt created the framework to mint and place real estate tokens on-chain. PRYPCO Mint, the first licensed real estate tokenization platform, in partnership with Dubai Land Department, Dubai’s Regulatory Authority, and powered by Ctrl Alt blockchain, issued the region’s first property token ownership certificate. The fully funded property attracted 224 investors from over 40 nationalities, with an average investment amount of AED 10,714, underscoring the platform’s wide appeal and the growing appetite for accessible, tech-enabled real estate opportunities in the region.

“We are proud to receive our VARA license and establish fully regulated operations in the UAE,” said Matt Ong, Founder and CEO at Ctrl Alt. “This achievement reflects our commitment to long-term regulatory alignment as we power the infrastructure for the next generation of financial products.”

“Securing our VARA license marks a pivotal moment not just for Ctrl Alt, but for the broader digital asset ecosystem in the region,” said Robert Farquhar, Head of MENA at Ctrl Alt. “Dubai’s progressive regulatory environment provides a strong foundation for innovation in tokenization and we’re proud to contribute to that vision by delivering secure, compliant tokenization infrastructure for real-world asset issuance.”

Saudi Arabia Pilots tokenization with DroppRWA and RAFAL Real estate

Saudi Arabia Pilots tokenization with DroppRWA and RAFAL Real estate

DroppRWA, a sister company of Web3 technology provider DroppGroup, has partnered with Saudi Arabia’s real estate developer RAFAL Real Estate Co, to execute a Saudi Arabian pilot that would (RWA) tokenization real estate transaction. The pilot will serve as a national feasibility benchmark for the future of tokenized property markets in KSA.

The pilot built on blockchain and AI systems will allow Saudi citizens to have fractional ownership of high value real estate assets with amounts starting for as low as single-digit Riyals.

droppRWA will conduct a full feasibility study for property tokenization across RAFAL’s portfolio. A fully regulated proof-of-concept will be developed and executed, with RAFAL supplying live real estate assets for controlled transaction testing.

Faisal Al Monai, droppRWA co-founder and founder of DroppGroup stated, “This transaction marks a paradigm shift. Around the world, we are witnessing the greatest digital transformation of the 21st century, the transformation of capital itself. The mission of this partnership positions Saudi Arabia at the forefront of programmable economies, with real-world impact for every citizen ,starting at just 1 Riyal,you can “own a piece of Vision 2030.”

Al Monai, added, ” For institutional and global capital, this will be a fully regulated pilot that provides a secure on-ramp for institutional-grade Foreign Direct Investments (FDI) into Saudi Arabia. It merges stablecoin liquidity with sovereign-grade infrastructure, bringing real-world assets onto the blockchain with trust, speed and scale.”

Elias Abousamra, CEO, RAFAL Real Estate, “At RAFAL, we have always believed that real estate should be both aspirational and accessible. This partnership with droppRWA is not just about technology – it’s about democratizing real estate investment and creating a global platform for foreign direct investment into the promising Saudi market. For the first time, a young Saudi can own a piece of a premium development with just a few Riyals. That’s a powerful idea. Together with our partners, we are proud to pioneer a new model of ownership that speaks to the inclusive and innovative spirit of Vision 2030.

DroppGroup offers an AI quantum resilient platform

In 2017, Faisal co-founded droppGroup, an enterprise Web3 and AI infrastructure company based in Miami, which was embedded in the Middle East’s digital transformation. droppGroup’s flagship product, droppOne, is an AI-native, quantum-resilient infrastructure platform designed for governments and enterprises to operate in a world where AI agents transact, identities are decentralized and economies no longer need intermediaries.

It has deployments spanning the governments of Saudi Arabia andQatar, Saudi Aramco, Cisco and Oracle, utilized for digital ID, AI agents negotiating real-time contracts, real world assets like energy being tokenized and national data rails stitched into smart city backbones.

At its core, droppOne enables a new kind of economy. Its architecture supports >500,000 TPS, seamlessly bridges on-premise enterprise environments with public blockchains. Every AI agent has a wallet. Every transaction is programmable. Every interaction – sovereign.

In 2023 Saudi oil giant Aramco entered a collaboration agreement with droppGroup, a US-based company with operational hubs in Canada and Saudi Arabia. The partnership entailed that Aramco and droppGroup work together on deploying the latter’s proprietary Web3 technology to support the Saudi Vision 2030 quality of life program. The companies worked to develop a range of innovative Web3 solutions to benefit Aramco employees, including an on-boarding and training ecosystem, a tokenized network, and a rewards program.

The partnership also intended to explore creating a global tokenised network connecting all Aramco stakeholders.

Recently Faisal Al Monai was at Aramco with Tether, the issuers of USDT. On LinkedIn he noted, “A great feeling representing droppGroup and Tether.io meeting with aramco – The digital economy is the future and the future is here. Real World Asset tokenization transforms today’s capital into tomorrow’s value and profit.”