Qatar and Saudi Arabia sign agreement for Digital Government

Qatar and Saudi Arabia sign agreement for Digital Government

The Qatar Ministry of Communication and Information Technology (MoCIT) and Saudi Arabia’s Digital Government Authority have signed an agreement to build the digital government field using cutting edge technologies.

The agreement was signed during the LEAP 2024 event being held in Riyadh KSA from March 4-7 2024 under the theme ‘Into New Worlds’.

The agreement aims to strengthen collaboration between the two countries in government digital transformation, capacity building, and competency enhancement in digital governance, as well as research, development, and investment in cutting-edge technologies within the digital government sphere. Additionally, the agreement encompasses various other areas relating to digital government and the Information and Communications Technology (ICT) sector.

The cooperation agreement was signed by Minister of Communications and Information Technology HE Mohammed bin Ali Al Mannai and Minister of Communications and Information Technology.

Al Mannai said, “Our strong fraternal relations with the Kingdom of Saudi Arabia pave the way for extensive cooperation and development opportunities across various sectors between our countries. Today’s agreement exemplifies our dedication to fostering innovation and technological advancement both locally and internationally. We anticipate a productive partnership with the Kingdom of Saudi Arabia that fosters the exchange of experiences and best practices in delivering government services, digital transformation, infrastructure development, and innovation promotion.”

The agreement aims to expand strategic partnerships in the digital government and digital economy sectors. It comes aligned with the ongoing efforts of the Qatari-Saudi Coordination Council to strengthen the partnership between the two brotherly countries.

In addition, Amazon Web Services unveiled its plans to launch a new infrastructure region in KSA by 2026, investing more than $5.3 billion. The move aims to support the Kingdom’s digital transformation and meet growing demand for cloud services in the Middle East. The new region will offer services such as analytics, artificial intelligence, compute, and storage, catering to various industries including healthcare, education, gaming and nonprofits.

LEAP forum is exploring topics such as artificial intelligence (AI), blockchain, smart cities, and the digital economy.

Saudi Arabia recently signed an agreement with The Hashgraph Association to launch a deep tech venture for cutting edge technologies including Blockchain.

Blockchain GameFi Venture, MetaTrace receives license in UAE

Blockchain GameFi Venture, MetaTrace receives license in UAE

MetaTrace, a GameFi venture, has secured a license from the UAE RAK DAO within the free economic zone. Embarking on its third investment round, the project aims to amass $25 million for global expansion, fortifying its market presence globally.

In May 2022 MetaTrace raised $500,000 for its NFT collection. By August 2022, a successful MVP on the geolocation platform MetaFora, powered by Polygon blockchain, was unveiled.

The second investment phase garnered $5,150,000, supported by angel investor Alexey. This marked the beginning of an extensive blockchain product ecosystem and a team of 50+ professionals. In September 2023, the MetaTrace TRC token debuted on exchanges, showcasing a 400% increase and maintaining a leading market position.

Metatrace is now launching its Series A investment round of $25 million. Mezen consulting group values MetaTrace at over $296 million, with projections soaring to $700 million within the next year. Despite the high valuation for a yet-to-be-fully-launched game, MetaTrace’s substantial user base and vibrant ecosystem provide a distinct advantage in this dynamic project.

$3.8 billion fund now tokenized on the blockchain with Sygnum Bank

$3.8 billion fund now tokenized on the blockchain with Sygnum Bank

Sygnum Bank which has a regulated digital asset bank in the UAE, alongside Hamilton Lane, and Apex Group announced a cross industry project that expands global private market access to significantly larger and more diverse groups of qualified investors using Blockchain.

Leveraging the power of the blockchain, the new DLT-registered share class automates and integrates traditionally separate fund management functions, increasing both accessibility and efficiency. The first fund to feature the new share class will be Hamilton Lane’s USD 3.8bn GPA Fund, which has an annual average performance growth of 14.6 percent and has outperformed the MSCI World Net Total Return Index (USD) by 4.44 percent since inception in 2019.

Leveraging Sygnum’s DLT solutions, the minimum investment has a significantly lower fund entry point than direct investments into traditional private markets’ evergreen funds. These DLT-registered shares will be available exclusively to Sygnum professional, institutional and corporate clients.

The unique investment opportunity is the result of a strategic, cross-industry project underway for more than a year. Hamilton Lane, a leading global private markets investment firm with over USD 900bn in assets under management and supervision, will serve as investment manager for the new offering. Apex Group, in its role as transfer agent and fund administrator (via Apex Fund Services regulated in Luxembourg), and FundRock-LRI, in its role as Alternative Investment Fund Manager (AIFM), is leveraging Sygnum’s DLT solution to manage the on-chain share registry.

Victor Jung, Head of Digital Assets at Hamilton Lane, says “We strongly believe that tokenisation has the potential to transform the way investors gain access to the historically strong returns and performance opportunities within the private markets, and are delighted to announce this digital-native, institutional-grade offering with Sygnum and Apex. This joint initiative with the Swiss Private Wealth team underscores the region as a leading digital asset hub that we believe will serve as a catalyst for broader adoption within the banking and wealth management industry. We would like to invite the community to join us in this movement.”

Fatmire Bekiri, Sygnum Head of Tokenisation, says “The new DLT-registered share class in Hamilton Lane’s GPA Fund marks the first entry in Apex’s on-chain share register. This is a significant breakthrough in making private markets more broadly accessible and investible via DLT solutions. We are proud to join forces with other industry leaders like Hamilton Lane and Apex, and we look forward to this strategic partnership delivering a series of new and unique opportunities for investors, as well as heralding positive, blockchain-powered change for the industry.”

Bruce Jackson, CFA, Apex Group Chief of Digital Asset Funds and Business says “Hamilton Lane will raise new investor capital, while expanding direct access to their GPA Fund offering. Clients of Sygnum Bank now have access to a sophisticated alternative asset class, designed to achieve significant alpha through uncorrelated investment returns. Apex continues to meet its goal of increasing access for its clients’ alternative strategies and will continue to perfect its Framework Operating Model for the distribution of alternative asset funds using blockchain as the subscription, onboarding, operating, administration, and transfer agency platform.”

This unique investment opportunity is made possible by Sygnum’s expertise in leveraging the blockchain’s capabilities in a fully-regulated environment. Novel project aspects include the “fractionalisation” of assets to enable smaller investment entry-points, streamlined compliance, the end-to-end automation of the on-chain share registry and transfer agent activities, as well as increased levels of transparency due to the open nature of DLT. This project is built on the Polygon blockchain.

According to McKinsey5, the +300% growth of global private markets fundraising between 2009 and 2022 was due to its consistent outperformance of public markets. However, the multi-million-dollar commitments that were typically required to participate in this high-growth market have, until now, limited private markets exposure for many in the broader investment community.

Sygnum closed a $40 million round, which valued the firm at $900 million earlier this year.

UAE HAYVN investors Deus X Capital buy out shareholders and appoint new CEO

UAE HAYVN investors Deus X Capital buy out shareholders and appoint new CEO

UAE HAYVN investors, Deus X Capital, a $1 billion family office has agreed to buy out HAYVN digital assets infrastructure provider and appoints Richard Crook as new CEO. Deus X Capital will purchase the business brand, technology, clients and staff from other HAYVN shareholders.

The parties have agreed to the asset purchase, subject to completion.

As per the press release, the deal provides the opportunity to recapitalize and reinvigorate the business as it seeks to consolidate its presence in the Middle East, while allowing for growth globally.

In addition, Richard Crook has been appointed interim CEO of HAYVN with a focus on growing the business and realizing the global opportunities ahead of it. Ahmed Ismail, Board Member & Co-Founder of HAYVN had told LaraontheBlock that they would be appointing a new CEO in December 2023.

Crook joins HAYVN following more than 25 years in the digital assets and investment banking industries, including roles such as COO of BCB Group, the digital assets payments business, and Head of Emerging Technology at investment bank RBS after serving in senior management roles at UBS.

Tim Grant, CEO, Deus X Capital, speaking on the asset purchase stated, “HAYVN is an innovative business at the forefront of the movement to a democratized financial system. We are committed to providing institutional clients with the critical services they need to capitalize on the existing and growing opportunity in digital assets, while continuing to build and develop new capabilities. HAYVN is core to our strategy and represents another pillar of our commitment to the Middle East region.”

Richard Crook, interim CEO, HAYVN, said: “I am delighted to join a business that has already established itself as a leader in financial technology and a fundamental pillar of the digital assets ecosystem. The digital assets industry is growing at a rapid pace as it continues to converge with traditional financial services, and I look forward to ensuring that HAYVN is central to that growth as we build on our success.”

This comes after the ousting of their previous CEO under difficult circumstances.

UAE government to increase adoption of AI and Blockchain in global trade

UAE government to increase adoption of AI and Blockchain in global trade

In a recent X post by HE Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, he noted that the UAE government will be accelerating the adoption of technologies such as AI (Artificial Intelligence) and Blockchain into the global trading system.

The Initiative called Regulation 5.0 for the Future of TradeTech and the Trade-Sustain-AI Initiative will identify key trends in trade technology and provide a blueprint for a harmonized global regulatory system to oversee their deployment.

According to Al Zeyoudi this is especially important for developing countries to avoid widening the technology gap.

Al Zeyoudi stated on X platform, “At the inaugural TradeTech Global Forum today, we launched two important initiatives that will accelerate the adoption of technologies like AI and Blockchain into the global trading system: Regulation 5.0 for the Future of TradeTech and the Trade-Sustain-AI Initiative.

He added, “Our Trade-Sustain-AI initiative will create global partnerships to oversee the development of AI-powered trade solutions that will advance sustainable practices throughout supply chains – and help promote a smarter, cleaner trading system.

The comments were made during the Abu Dhabi World Trade Organization Conference being held in Abu Dhabi between Feb 26th and 29th. The conference had metioned that decentralization of global supply chains would be on the table for the first time.

The conference witnessed that attendance of 165 nations and trading blocs. WTO Director-General Ngozi Okonjo-Iweala noted in an interview with WAM, “We will initiate new dialogues, called deliberative sessions, where, for the first time, the ministers will engage on issues crucial to the contemporary world, including trade and environment, trade and climate change, trade and sustainability, and trade and inclusion.”

She advocated the decentralization of supply chains, expanding them to developing countries.

Moreover during the conference, Blockchain Foundation, IOTA announced its partnership with the World Economic Forum, Trademark Africa, the Tony Blair Institute for Global Change, the Institute of Export and International Trade, and the Global Alliance for Trade Facilitation.

As per their press release, “Together, we are embarking on a transformative journey to revolutionize international trade through the creation of the Trade Logistics Information Pipeline (TLIP). International trade has long been burdened by inefficiencies, bureaucracy, and lack of transparency. The cumbersome process of trading goods across borders involving numerous documents, multiple actors, and intricate regulations often leads to delays, errors, and even fraudulent activities. Recognizing the urgent need for a reliable and transparent digital trade infrastructure, our coalition is committed to fostering a neutral governance framework for TLIP.”

TLIP aims to streamline information exchange and promote collaboration across borders. It builds on IOTA’s distributed ledger technology (DLT) to provide data immutability and security. It performs the same function as a government stamp on a trade certificate to prove authenticity – just made digital.

Customs in destination markets will not need a stamped physical Certificate of Origin when using TLIP. However, while physical documents are subject to fraudulent risks, the TLIP system ensures transparency and immutability of the relevant details of uploaded documents.

TLIP ensures that a digital certificate is authentic and prevents it from being tampered with. IOTA also provides distributed controls, so each trade actor can manage their data and give access permission without outsourcing the permission controls to a centralized entity enabling a digital-based collaboration much like how the free market of trade works manually today.

Furthermore, using IOTA’s DLT enables parties to interact securely online without requiring a centralized platform that stores all information and is vulnerable to hacking or manipulation.

Dubai regulator grants WadzPay a crypto broker license but not a payment one

Dubai regulator grants WadzPay a crypto broker license but not a payment one

The Dubai based entity of WadzPay, WPME Technology, which specializes in blockchain based technology for virtual assets has been granted a Virtual Assets Service Provider (VASP) Licence for Virtual Asset Broker-Dealer service activities, better known as crypto broker license, by Dubai’s Virtual Assets Regulatory Authority (VARA).

The crypto broker licence remains non-operational until the company fully satisfies all remaining conditions and select localisation requirements defined by VARA, following which it will be able to commence operations, subject to regulatory reverification and approval.

As per the press release, WadzPay is excited to deliver its innovative and industry-leading solutions to customers across Middle East while working closely with regulators in contributing to build a compliant and robust fintech ecosystem.

Mr. Anish Jain, Founder & CEO, WadzPay stated “This licence showcases WadzPay’s dedication in promoting innovation in the field of virtual assets domain and blockchain technology bringing us a step closer to delivering world class solutions to businesses in Middle East.”

WadzPay aims to revolutionise the way people in the Middle East transact and manage virtual assets. WadzPay’s commitment to compliance ensures that financial institutions and their customers can confidently embrace the benefits of blockchain technology while adhering to regulatory standards, ultimately contributing to the growth and sustainability of the fintech ecosystem in the Middle East.

Mr. Ram Chari, Board Member and Group Director, WadzPay quoted “This will further solidify WadzPay’s position as a trusted and reliable blockchain technology based financial service provider in the region. With the broker-dealer services, WadzPay will provide the technology to its clients to enhance the experience of their customers by enabling virtual assets transactions in a seamless and secure manner. “

To which Mr. Khaled Moharem, President – MENA & Europe at WadzPay, emphasised, “This cements our hard work and sets the stage for transformative blockchain solutions, promoting compliance and customer confidence in the Virtual Assets Industry.”

WadzPay received its initial approval for a license back in October 2023.

In 2022, KSA based Geidea, a leading fintech company in Saudi Arabia and Blockchain based payments solutions, WadzPay Middle East Technology forged a new strategic partnership to power the transformation of pilgrimage payments.

WadzPay had been strivign to obtain a Blockchain settlement and payment license from VARA in Dubai, yet this will need further framework and direction from the Central Bank of UAE.

Blockchain real estate tokenization blossoms with Desert Pearl in UAE

Blockchain real estate tokenization blossoms with Desert Pearl in UAE

The UAE is set to witness the launch of a large scale real estate blockchain tokenization project called Desert Pearl. Dubai based tokenization consultancy company, DDX, which is involved in both real estate and gold tokenization projects announced Desert Pearl.

As per their website, “This amazing blockchain tokenization project will be the first large scale tokenization project.” The project vision is to create an eco-tourist attraction that combines Dubai’s history and heritage with the natural beauty of the desert.

The DDX Global team and its partners will build a desert resort city with hotels, apartments, shops, entertainment and business venues. Current plans are to build 1000 hotel rooms, 1200 apartments, a shopping mall and conference center, alongside an amazing pearl shaped building for tourism and entertainment (40 storeys high), as well as a Museum and Heritage center.

The project will be tokenized using Blockchain technology. Land tokens will be collaboratively minted by DDX Launchpad partners. DDX Global and its partners will carry out the development over the next 5 years.

Chris Santilhano, Chief Operating Officer of DDX Global  stated, “Our aim as a tokenization consultancy is to leverage blockchain technology for tokenizing real-world assets, we are committed to creating exceptional value for our investors. In addition to the opportunity for long-term value, our strategic approach of digitizing real estate assets will help strengthen liquidity and enhanced international investment in Dubai’s property sector. Our goal is to create a blue-print for responsible real estate tokenization. The integration and interaction of different tokens and their use cases contribute to the DDX Global ecosystem. We are bridging two core markets – the luxury property sector in Dubai with the growth in fintech enterprises driven by Web3 innovation.”

Designed by Zhuzh, a Dubai-based international luxury, bespoke architectural design company, Desert Pearl will feature two luxury hotels, luxury apartments, a high-end commercial cluster and a luxury retail precinct in addition to a boulevard and private marina. The luxury boutique hotel with 88 keys will also house an arena, an Arabic astronomy museum, planetarium, Concord’s Gallery, and hanging gardens.

The first residential building in Desert Pearl is the Qamar Residences, featuring the Pearl Collection of homes at 400 square meters, the Oasis Collection at 650 square meters and the Sky Penthouse, a triplex, will be a record breaking 5,000 square metres. All the items in the apartments will be customized. All these assets can be tokenized, delivering more value for investors. More details of the project will be announced shortly.

‘Desert Pearl’ resort in Dubai will combine sustainability and high-end tokenization.

DLT experts in high demand in Saudi Arabia

DLT experts in high demand in Saudi Arabia

In a recent LinkedIn post, Anthony Butler, senior advisor to Saudi Central Bank ( SAMA) an expert in Blockchain and digital assets, called for DLT ( Distributed Ledger Experts) or Blockchain experts, as well as AI ( Artificial Intelligence), Machine Learning and software engineers to apply for positions in some world class projects in KSA.

According to Butler there are exciting opportunities in KSA. He states, “There are some world class projects that have an impact in KSA.”

In June 2023, Butler had made a similar call for talents for blockchain, AI and digital assets experts for jobs in KSA. At the time he mentioned roles for software engineers with experience working with DLT protocols and applications. According to Butler the role required experience implementing solutions using tech such as Ethereum, Hyperledger Besu, Hyperledger Fabric, and/or R3 Corda.”

KSA has been launching and investing in digital economy projects across the country.

They had launched a nationwide CBDC project in 2022 which is still underway.

In addition last week, KSA based Marhaba Blockchain Information Systems (MRHB) a blockchain web3 Infrastructure,  partnered with Saudi Arabia’s Digital Economy Centre (DEC)  an institution driving the digital transformation of Saudi Arabia’s economy in alignment with Vision 2030. The collaboration focuses on Blockchain, DLT and Artificial Intelligence (AI), initiatives.

Even Saudi Arabia’s Muqassa, a subsidiary of Saudi’s Tadawul Group, specialized in settlement of trades, signed an MOU (Memorandum of Understanding) with Swiss Blockchain enabled Instimatch, a cash management platform for institutions across industries and geographies to interconnect. The MOU will work to launch a repo trading platform to enhance the financial structure of the Saudi Capital Market.

Blockchain enabled entities such as Crysp Farms, a UAE based innovator and operator of decentralized blockchain enabled vertical farms, secured a $2.25 million ‘Pre-Series A’ round structured and led by Gate Capital with participation from regional investors, including those from the UAE and Saudi Arabia.

Additionally AI and Blockchain enabled Tribal Credit, founded by Egyptian entrepreneurs, will be expanding into Saudi Arabia, and using a renewed and increased debt facility of $150 million with Partners for Growth.

Swiss based The Hashgraph Association (THA), for Blockchain DLT digital enablement signed a strategic partnership with the Ministry of Investment of Saudi Arabia (MISA) to launch a “DeepTech Venture Studio” in Riyadh worth $250M USD over five years (2024-2028).

Blockchain has even infiltrated the LEAP 2024 Tech Exhibition and Conference, taking place between March 4th-7th 2024, in Riyadh KSA. Already many blockchain and DLT entities have announced their participation at the event, including names such as Antematter, who specialize in crafting cost-effective, innovative solutions in AI, Blockchain, and Cloud Development, iBLOCKCHAIN, who are fostering blockchain adoption across governments, enterprises, and the public sphere,  and companies such as BitWits, will be showcasing their web game, blockchain, and AI development.

So it would seem that KSA is definitely becoming a blockchain, DLT, and digital economy hub.

Fastex crypto exchange gets initial approval from VARA in Dubai

Fastex crypto exchange gets initial approval from VARA in Dubai

Fastex, a crypto exchange, payments gateway and ecommerce platform, has set up an office in Dubai World Trade Center, as it seeks a license from Dubai’s virtual asset regulatory authority (VARA). Fastex has already received initial approval from VARA.

As per the press release, Fastex chose the office because of its proximity to VARA. As stated, “This proximity enhances Fastex’s ability to work closely with the authority and expedite the licensing process as a Virtual Asset Service Provider (VASP). In addition to the office opening, Fastex has received initial approval from VARA to conduct Broker-Dealer and Exchange operations, highlighting its commitment to regulatory compliance.”

Vardan Khachatryan, the Chief Legal Officer and Member of the Board of Directors at Fastex, stated, “Opening our new Dubai World Trade Center office is a noteworthy step in Fastex’s growth strategy. This move underscores our commitment to adhering to industry standards and maintaining high-quality service in the digital asset field. Being located in the DWTC, close to VARA and other key industry participants, positions us well to offer reliable and regulated services to our clients.”

Fastex will be participating at the AIBC Summit in Dubai UAE. They announced on X platform that they were nominated for best exchange of the year award.

This comes as DKK Partners FZE, subsidiary of DKK Partners a fintech company also announced that it has been granted an initial approval by the Dubai Virtual Assets Regulatory Authority (VARA) for crypto brokerage dealer services.

So far more than 11 crypto exchanges have received licenses in UAE.

Digital asset investment firm launches Shari’ah compliant crypto Fund

Digital asset investment firm launches Shari’ah compliant crypto Fund

Netherlands-based investment firm, The Growth Capital, has partnered with Shari’ah Review Bureau (SRB) as its Sharia advisor to oversee its investment activities in digital assets, particularly cryptocurrencies, through the TGC Trading Fund.

The Growth Capital views digital assets as catalysts for revolutionary changes in global finances. Omid Rahimi, CEO, emphasized the company’s commitment to leveraging its full licensing in the Netherlands to bring about positive transformations in the financial investment community. Obtaining Sharia compliance certification is a significant milestone for The Growth Capital, enabling the company to offer the Muslim community exposure to digital assets with regulatory adherence and Sharia assurance.

The Growth Capital has proactively established a fund dedicated to investing solely in Sharia-compliant cryptocurrencies, employing a long-term appreciation strategy. Omid Rahimi highlighted the collaboration with SRB, citing their extensive experience working with asset managers, blockchain, and fintech companies as a strategic move to focus on private Islamic investors and provide them exposure to Sharia-compliant digital assets.

SRB, renowned for its end-to-end Sharia advisory solutions, offers centralized services for Sharia supervision, functionality, and swift product certification.

This approach not only streamlines the process for global Islamic financial establishments and fintech startups but also reduces overheads associated with Sharia scholarly tasks.

Yasser S. Dahlawi, Founder and CEO of SRB, acknowledged the growing trend in the investment community towards alternative investments in the digitized asset class, emphasizing how SRB’s Sharia assessment of the assets, controls and audit services align with the unique nature of non-traditional products. Dahlawi concluded by expressing how their collaboration with The Growth Capital supports the firm in maintaining focus on critical investment functions while ensuring ongoing Sharia compliance.

Prior to this MRHB Network partnered with Shari’ah Review Bureau (“SRB”), a Bahrain-based Shari’ah advisory firm, to independently assess and review its new product EMPLIFAI (Earnings Amplified with Algorithms & AI) which aims to provide Sharia-compliant passive income.