End of 2022 31 percent of Saudi adult population will own cryptocurrencies

End of 2022 31 percent of Saudi adult population will own cryptocurrencies

Kucoin cryptocurrency exchange has revealed in a report “ Crypto Verse Report on adoption of digital currencies in Saudi Arabia” that 3 million Saudi Arabians are crypto investors who currently own cryptocurrencies or have traded in past six months. This means 3 million out of an adult population of 21 million  or 14 percent currently own cryptocurrencies.

The survey also found that another 17 percent of adult population surveyed, was crypto curious and are likely to invest in crypto in the next six months. This would be mean that by the end of 2022, 31 percent of Saudi adult population or 6.6 million will be trading or owners of cryptocurrencies. 

The report’s findings highlight sustainable interest among potential crypto investors in the Arab country. In the first quarter of 2022, 49% of crypto investors intended to increase investment in cryptocurrencies over the coming six months. The onset of the bearish market in the second quarter of 2022 saw a reversal of investor sentiment toward more conservative strategies related to the holding of cryptocurrencies. 

In the second quarter of 2022, 31% of crypto owners in Saudi Arabia said that they would keep their crypto balance as is rather than increase their investment. Investors with lower income tended to sell off a part of their portfolios during the same period.

The high proportion of new market entrants is unique to Saudi Arabia, as 76% of crypto investors have less than one year of experience in crypto investment, including 49% of those who first started trading cryptocurrencies in the past six months, suggesting strong demand for crypto education in the market. 51% of crypto investors invest because they believe it is the future of finance, while 44% believe that cryptocurrencies can bring them higher returns in the long run compared to other types of financial investment.

On the demographic side, 63% of crypto investors are men. The gender ratio has remained stable over the past months. In terms of age distribution, young crypto investors below 30 account for at least a third of the total and have increased to 37% in the second quarter of 2022. A slight difference is observed in the mindsets of men versus women, as 44% of male crypto investors say they do not want to miss the trend. On the other hand, women tend to hold a more practical mindset, focusing on realistic benefits. 48% of female crypto investors are motivated by its profitability in the long run, and 42% of females invest in crypto to gain passive income.

42% of Saudi crypto investors say they plan to use the profits to improve their families’ living conditions. Other goals include buying a new house, saving for retirement or emergency fund, and spending on other enjoyments such as traveling and shopping. In addition, 15% of crypto investors hope to live on the income from a crypto investment to be spared from work. Many are using the gains from crypto investment to grow their portfolio and reinvest, especially male crypto investors. 29% of crypto investors plan to start their businesses with gains, and 28% intend to reinvest the money into the financial market.

 Social media is the most popular source of crypto-related information, which 84% of crypto investors turn to when doing their research, particularly YouTube and Twitter. Online communities are also important influences for investors. 35% of crypto investors rely on the communities or Telegram for crypto-related information. 32% of investors prefer to consult their families and friends, while others research on their own, seeking information from various sources.

Almost half of crypto investors buy digital currencies using fiat and engage in spot trading every month, which involves trading, buying, and selling on the current market value as the only form of crypto trading that is considered halal by some scholars in the Arab world. Types of investment that involve interests and gambling, such as staking, futures trading, and margin trading, are less popular in the country. As the market goes bearish in the second quarter of 2022, 42% of crypto investors have adopted auto-trading solutions such as trading bots, 7% up from the previous quarter.

Investors search for excellent security and customer service when deciding which crypto exchange to use. The ability to be supported by secure and stable technology is a must-have for 40% of crypto investors, and 36% prefer the promise of repayment in the event of a security breach. In addition, the platforms’ efficient customer service is considered critical by 37% of respondents.

In 2021 Kucoin announced that users were able to buy USDT using United Arab Emirates Dirham through P2P fiat trading with the same for KSA as well. 

Stratez Capital and Newtek to develop tokenized commodity trading on the Blockchain

Stratez Capital and Newtek to develop tokenized commodity trading on the Blockchain

Singaporean, Stratez Capital with offices in UAE, a boutique firm that focuses on assisting enterprises who are planning to elevate to the next phase of growth, has partnered with NewTek Holdings to develop tokenized commodity trading and real-estate projects on the Blockchain.

As per the press release, the Middle East has been identified by NewTek as a priority market, and the company is initially looking to focus on major real estate projects in Dubai.  “This is an exciting partnership, and in line with the investment and strategy objectives of the company, and we feel we can add huge value with our expertise and investments. NewTek brings real asset value and a clear vision in one of the fastest growing areas where real world assets combine with future Web3 and blockchain technology,” said Vik Pillai, Managing Partner at Singapore-based Stratez, announcing the agreement today.

Qurashi, CEO of London-based NewTek, said: “I’ve been very impressed by the depth and variety that Stratez brings to this new partnership, and am thrilled to be working with them. NewTek sets out to integrate the technology behind blockchain, NFTs and Web3 into the world of real estate and commodity trading. We have clear objectives, and I’m confident that Stratez can play a key role in turning our vision into reality.”

NewTek is a newly-formed company set up by Safi Qurashi, a serial entrepreneur and property developer. Over the last 25 years, Qurashi has founded several successful startups, including one of the first internet cafes in London in 1996 and a successful real estate company in Dubai. Other ventures included an armoured vehicle manufacturing company and a facility management firm in the UAE. Qurashi is the co-owner of Great Britain Island in Dubai’s World Islands project.

Qurashi added, “This partnership connects us with some very impressive Stratez partners, and I’m looking forward to the opportunity to work with world-renowned luxury brands. We’ll be announcing more details about the new venture in the coming weeks. But basically we’re working to allow the fractionalization of exclusivity within the two safest real life asset classes, real estate and commodities.”

As per his linkedIn, Newtek is working on tokenizing commodities making them accessing to all. Nire is on of the first ventures of Newtek and now live and trading.

The Saudis Free to Mint NFT Collection Sold Out after reaching 7.7 million USD in sales

The Saudis Free to Mint NFT Collection Sold Out after reaching 7.7 million USD in sales

In the past few days the Saudis NFT Collection has topped the OpenSea volume charts just below cryptopunks. The Saudis Free to Mint Collection totaled 6,700 ETH (roughly $7.7 million) in sales volume since its mint on July 9th 2022.  It is now sold out!! The Saudis is a collection of 5,555 NFT, an exclusive club, max bidding to the top.

Each Saudi is unique and programmatically generated from over 80 possible traits. All collectibles are on the Ethereum blockchain. The Saudi NFT will grant its holder a Sheikh status in the Saudis Kingdom and allow owners access to upcoming venues.

The Saudis NFT also has onchain metadata as one of its features given that they store their metadata on their smart contracts unlike most NFTs which rely on external sources like AWS (Amazon Web Services) or IPFS to host metadata. Storing the metadata on chain helps to reduce the costs. Not only does this metadata include the name and traits, but it also includes data to generate the image itself

As per a tweet on Saudis NFT, the NFT collection had been flying, topping the OpenSea Charts with almost 7,000 ETH traded since the weekend.

The collection of 5,555 NFTs were free to mint on July 9th a Saturday and sold out within hours.

The project’s floor price (which is the price of the cheapest edition currently for sale on the open market) is around 0.75 ether (roughly $867), after peaking at around 1.3 ETH (roughly $1,650) on Saturday.

As per a Coindesk article, the release came with its fair share of NFT influencer drama, with fingers being pointed at popular Twitter personalities who were able to profit off early knowledge of the mint.

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Etihad Airways beats Emirates and Qatar Airlines with the launch of NFT collection on Polygon

Etihad Airways beats Emirates and Qatar Airlines with the launch of NFT collection on Polygon

While Emirates Airlines was the first to speak about the launch of NFTs, metaverse and so forth, and Qatar airlines followed with its own metaverse initiative with talk about NFTs to be included, it was Etihad Airline who actually will be launching its own NFT collection on Polygon in July 2022.

Under the name EY-ZERO1, UAE Etihad airlines will be launching the utility-driven NFT series features of ten highly detailed 3D aircraft models, each one showcasing a unique Etihad Airways Boeing 787 Dreamliner livery. The NFT Collection will encompass a total of 2003 limited edition collectibles, symbolizing the year when Etihad Airways was established. The NFT Collection will go on sale at 6pm UAE time on 21st of July. The collectibles include Etihad’s Manchester City FC and Greenliner-themed aircraft, among others.

“We’re excited to launch our first NFT collection, EY-ZERO1, which not only offers collectors, aviation enthusiasts and travelers a unique work of art, but provides real-world travel and lifestyle benefits with Etihad Airways. NFTs and other metaverse technologies are revolutionizing the digital economy, and we are proud to be one of the first airlines in the world to explore their potential to provide additional utility for our customers” , said Tony Douglas, Group Chief Executive Officer, Etihad Aviation Group.

Purchasing an NFT will give owners immediate Etihad Guest Silver tier membership for one year, with 10 lucky NFT holders winning complimentary flight tickets with Etihad. NFT owners will also be given advance access to upcoming NFT collections as well as future metaverse products which the airline has planned as part of its Web3 strategy.

To celebrate the new collection, Etihad will be giving away 20 NFTs to people who pre-register on etihad.com/zero1 by 16 July. Each NFT will be priced at US$349 plus tax on etihad.arcube.io, and the sale will close on 18 August at 6pm UAE time.

The NFTs will also be available to purchase through the Etihad Guest Reward Shop, meaning the airline’s 7 million loyalty program members can redeem their Etihad Guest Miles to acquire an NFT.

EY-ZERO1 is set to be minted on Polygon blockchain, and Etihad Airways will be partnering with Aerial.is to track the CO2 emissions of the NFTs. In addition to offsetting the entire carbon footprint of the project, the airline will allocate all proceeds from the collection to purchase sustainable aviation fuel in 2022.

“As well as recognizing the artistic value of our aircraft liveries, our NFT collection has been designed to be as efficient as possible and support our wider sustainability and decarbonization efforts at Etihad Airways,” said  Douglas.

Cementing UAE as a digital economy both organically and internationally

Cementing UAE as a digital economy both organically and internationally

UAE is building its digital economy organically by educating its government employees as well as acquiring it internationally by attracting international tech players and their talents. Not only has the country come out with a new initiative to attract 300 global tech firms, but it is also working with Chainalysis to train its government employees on all things blockchain and crypto (virtual assets).  

In recent news announced, Minister of State for foreign trade, Thani Bin Ahmed Al Zeyoudi, launched the “NextGenFDI” that aims to attract 300 global tech firms as well as software developers, data scientists, and coders.

The start of the initiative is through partnerships already inked out with seven major firms and business districts that include Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC),  Dubai South, DMCC,  Dubai Internet City, Emirates NBD and digital bank WIO.

Al Zeyoudi said international businesses “are approaching us and asking how they can relocate their talent, ideas, and high-growth ventures to the UAE.  The global interest in 2022 is unprecedented and while we are already working with some, we know many more want to follow suit. We want to ensure that the world’s most promising digital companies can access all the benefits that our attractive, business-friendly environment offers – but we also want to make it easy for them.”

The minister said they are introducing measures to make market entry for companies and workers simpler. These include fast incorporation processes to speed up licensing, bulk visa issuances, banking facilitation and commercial and residential lease incentives.

This is in line with UAE’s establishing 1,000 new digital companies and increase investments in startups from $400 million to $1.3 billion.

But that is not all, on the governmental front, UAE Minister of State for Artificial Intelligence, Digital Economy, and teleworking applications, Omar Bin Sultan Al Olama signed an MOU with Bas Lemmens, General Manager for EMEA at Chainalysis to provide virtual training programs for government employees in the areas of Blockchain and virtual assets.

For those who don’t know Chainalysis, it provides data, software, services, and research to government agencies, exchanges, financial institutions, insurance and cybersecurity companies in over 70 countries. Their data platform powers investigation, compliance, and risk management tools that have been used to solve some of the world’s most high-profile cyber-criminal cases and grow consumer access to cryptocurrency safely.

This would allow employees to develop their skills. Al Olama stated that strengthening partnerships with pioneering companies and empowering government entities with the latest tools and advance technologies play a pivotal role in enhancing the readiness of the UAE government, through exchanging experiences and global success stories. Blockchain technology is key to creating innovative solutions for future challenges, which contributes to developing government work and new technologies that enhance the UAE’s leading position globally, he added.

The MoU also aims to enhance the utilization of Blockchain technologies in building a smart future for the UAE.

Michael Gronager, CEO and Co-Founder of Chainalysis, said, “We are honored to be selected by the UAE to play a supporting role in up skilling government entities through knowledge in Blockchain that have the potential to serve as one of the essential digital tools in promoting a robust digital economy.”

Bas Lemmens, added “We are very proud to partner with the UAE government in supporting its initiatives in adopting blockchain, analysis tools and training through the ‘UAE Chainalysis Centre of Excellence’ to implement new technologies that will help drive new business opportunities. We want to build trust in blockchains and drive the adoption of digital assets.”

As of today there are more than 1000 blockchain and crypto companies who have set up in UAE. With these initiatives this number is 

UAE DMCC is home to 36 percent of UAE’s crypto and Blockchain businesses

UAE DMCC is home to 36 percent of UAE’s crypto and Blockchain businesses

Since June 2021, exactly one year ago, the UAE DMCC (Dubai Multi Commodities Center) has been able to attract 373 crypto and blockchain companies into its ecosystem of 21,000 companies. Looking deeper this means the crypto and Blockchain companies already make up 1.6 percent of the total number of registered companies at DMCC. These crypto entities reside in DMCC’s crypto center. (figures provided to laraonetheblock by DMCC)

This information came to light when DMCC recently announced its half year 2022 results, which witnessed 1,469 new companies registering at DMCC of which 205 were in the crypto and Blockchain space. As such 14 percent of new companies registering at DMCC in 2022 so far have been from the crypto ecosystem.

While the total percentage of Blockchain and crypto companies registered in DMCC might look insignificant, it is a powerful testament to DMCC and the UAE. The UAE has become a home to major global crypto and Blockchain players especially after the activation of the Virtual Assets Regulatory Authority in Dubai as well as the work being done by ADGM (Abu Dhabi Global Markets) in Abu Dhabi.

Notably UAE now is home to 1000 blockchain and crypto entities as per the stats provided by Crypto Oasis ecosystem. In response, UAE based Crypto Oasis recently updated its target for 2022 to 1500 crypto and Blockchain companies from its previous target of 1000. Given that UAE is home to 1000 blockchain and crypto companies, and DMCC houses a total of 373, this means DMCC is currently home to 37 percent of all the blockchain and crypto entities present in the UAE.

In DMCC press release they noted that part of the growth in the number of companies was due to the continued interest in the DMCC Crypto CENTER. The Crypto Centre offers a home to all types and sizes of crypto businesses, from companies developing blockchain-enabled platforms, NFTs and Metaverse environments, through to firms trading crypto assets.

In addition the UAE has attracted top crypto and blockchain companies, such as Binance, Crypto.com, FTX and others. For example Forbes recently published its top 50 Blockchain companies for 2022, noticeably companies such as FTX crypto exchange on this year’s list now has a presence in the UAE as a regulated entity.

It wouldn’t be surprising to see a larger number of crypto and Blockchain entities enter the UAE by the end of 2022.

UAE Sectors left right and center accepting crypto payments

UAE Sectors left right and center accepting crypto payments

This week several entities each one in a different sector announced that they have become the first in their fields to accept crypto payments. Writing this piece I get a feeling that this will soon become common practice. For the past few months all one reads is more and more entities in UAE accepting crypto payments, whether they are schools, restaurants, property developers, Emirates airlines, retail shopping centers such as Majid Al Futtaim and many more. This time it is the turn for art galleries and charities. The majority of crypto enthusiasts and those passionate about Blockchain and crypto have been waiting for this for a long time; it signals the entrance of crypto into mainstream economy and once that happens there is no turning back. Bearish or bullish markets are of little significance because everyone is into crypto.

So Yesterday UAE based Galloire, art gallery announced that it is now accepting crypto payments such a Bitcoin, Ethereum and USDC for artwork sales globally. It is doing so through UAE based digital asset exchange, Midchains. Prior to this DAMAC properties announced it was accepting crypto payments through UAE based digital asset exchange Hayvn

Founder of Galloire Edward Gallagher said; “We have an absolute belief in the use of technology to bring art to as wide an audience as possible, so by using photorealistic VR and AR you’ve already seen us bring exhibitions from world-famous artists to tens of thousands more people than could have ever seen it in the gallery. We want more people to connect with contemporary art and also believe in an egalitarian approach to how people want to pay for that art: Why should we force a crypto-native person to pay in traditional (fiat) currency to acquire a beautiful painting, and vice-versa, why should a traditional collector looking to venture into NFTs have to pay in crypto-currency just to access some digital art they fall in love with?”

MidChains CEO Basil Al Askari said; “We are a company which prides itself on innovation and being able to provide safe and regulated ways to transact and invest with cryptocurrency, so working with Galloire to enable collectors to invest in art using their preferred cryptocurrency made perfect sense to us. Enabling people to pay securely for a physical asset with a digital asset, especially something as impactful as art, is a huge step forward in the UAE and we have been able to power that today, not in months or years’ time.”

Prior to this, UAE government backed nonprofit healthcare organization also became the first healthcare charity to accept cryptocurrency donations.  Al Jalila Foundation announced that it had been granted approval to receive charitable donations in cryptocurrencies. Again Al Jalila did this through a partnership with a leading cryptocurrency platform without naming it.  

Dr Abdulkareem Sultan Al Olama, CEO of Al Jalila Foundation, said: “As a philanthropic organization we rely on charitable donations and we are always seeking innovative ways to expand our donation channels for ease of convenience for donors from all around the world to support our programs. Therefore, as an emerging source of fundraising, providing the opportunity to the growing number of crypto users around the world to donate to Al Jalila Foundation to causes that interest them is a win-win for us as a foundation and the donor community. We are proud to be the first healthcare charity in the UAE to accept donations in cryptocurrencies bridging the gap between physical and digital currency.”

One thing remains to be seen, is when the UAE government announces that it accept crypto payments, then I will just call it a day and name UAE the crypto nation of 2022. 

UAE ChainTech Labs launches first reward bearing tokens marketplace from DIFC

UAE ChainTech Labs launches first reward bearing tokens marketplace from DIFC

ChainTech Labs, the first Reward Bearing tokens marketplace, with custom smart contracts and vaulting technologies that will enable startups and SMEs to get funded utilizing a novel token issuing framework, has launched out of UAE specifically out of DIFC (Dubai International Financial Center).

On its twitter page it states that it is the first DAO (Decentralized Autonomous Organization) out DIFC in UAE.

As per their website, ChainTech builds next generation Dapps for government agencies, global conglomerates and companies operating in over 40 different industries. The company also manages NFT communities. They state that the “total token market cap under their command reached 100,000,000 USD in June 2022.

They have developed BAPESCLAN which is a metavestor NFT DAO with a total market cap of 60,000,000. Minting officially started today. They also have developed BLOODLINES™, the first decentralized animated series, created and owned by its holders, that bridges the gap between Hollywood and Web 3.

Their product offering includes ChainLaunch a Launchpad for highly professional NFT projects and companies with a major focus on metaverse play-to-earn gaming, ChainRescue™ an NFT consultancy service that assists and embraces NFT projects and their communities with promising missed potential, ChainVest™, the world’s first marketplace for Reward Bearing Tokens (RBTs) that enables startups and SMEs to raise capital like never before. RBTs provide holders with access points in the metaverse to earn rewards, ChainReality™ a realistic digital twin of our world, also known as a meta-world. It is built entirely on Unreal Engine 5 with realistic avatars created with Metahuman.

In addition they have developed ChainCapital™, the world’s first DAO Metafund powered by fractionalized ownership, facilitating the fundamental concept of distribution of wealth and power and ChainPaid™ a service that enables private and business payments of any bill or invoice using any cryptocurrency. There has never been a smoother way to pay for anything then now.

Above and beyond all this, in a twitter teaser they announced that they will be partnering with Dubai Blockchain Center and will announce this during the Dubai Fintech Week on the 28th and 29th of June. Both Dr. Marwan Alzarouni, CEO at the Dubai Blockchain Center, and Erik Lydecker, MD at Chaintech Labs Limited will be present.

Qatar to crypto or not to crypto that is the question

Qatar to crypto or not to crypto that is the question

This week Qatar made headlines in the Blockchain, crypto, NFT and metaverse scene on several fronts. While the CEO of Qatar  Sovereign Wealth Fund praised Blockchain but shunned crypto, Qatar’s Central Bank Governor stated that crypto assets are a technology innovation that will take us to a new era of fast accessible payments and financial services. Topping all this was Qatar Airways increased foray into the realm of the metaverse, and NFTs.

It seems that while the government of Qatar has yet to make up its mind on whether it wants to enter the era of cryptocurrencies, or whether they agree that crypto will have to be dealt with at one point or another, they are taking steps towards integrating elements of blockchain and CBDC into their strategies.During the Qatar Economic Forum Qatar Central Bank Governor Bandar Bin Mohammed Bin Saoud Al Thani admitted that Qatar is in the foundation stage of investigating a central bank Digital Currency (CBDC). As he noted, “Many central banks are now considering issuing CBDC, and we are not an exception to that. We are evaluating the pros and cons of issuing the CBDC and to find the proper and the right technology and the platform to issue.”He then noted, “Crypto assets are a technology innovation, and in my view it might take us to a new era of fast accessible payment and financial services.  “Those crypto assets which are not underlying by assets or monetary authority might be less credible.”

On the other hand Qatar’s sovereign wealth fund CEO Mansoor Al Mahmoud revealed that the wealth fund has no interest in investing in Bitcoin, but is still very much interested in exploring blockchain.

He was noted as saying, “Our team in the technology space is exploring opportunities in the blockchain,” Al Mahmoud said in an interview. He adds “This is the space that we’re interested in, not the currency itself.”

In the midst of these discussions Qatar Airways expressed its intention to include the purchase of tickets for physical flights through the QVerse metaverse, and the incorporation of NFTs. 

All this comes while the FIFA World Cup 2022 has partnered with the likes of crypto.com and Algorand Blockchain, and crypto exchange CoinMENA announces it is servicing clients in Qatar through its license in Bahrain. 

Qatar at one point will have to come to grips with the fact that with blockchain the metaverse and digitization comes digital assets, whether they are called cryptocurrencies, crypto assets, virtual assets, tokens or NFTs.

For example if Qatar were to utilize blockchain in the energy sector, and work with companies such as PermianChain which is tokenizing natural resources such as flared gas, and if they wanted to utilize PermianChain’s energy token marketplace, they would at some point need to use the DEC Token to optimize their experience. Tokens and Blockchain go hand in hand despite attempts to de-couple them.

One cannot implement blockchain, invest in blockchain nor create a CBDC to be held in digital wallets, without addressing the elephant in the room which is crypto and or digital asset. So instead of being the black sheep of the GCC Crypto hype, wouldn’t it be better if Qatar was the winning stallion.

Morocco’s crypto bill will be out soon

Morocco’s crypto bill will be out soon

The Central Bank of Morocco, Bank Al Maghrib, announced during its second quarterly in June 2022 that it will be introducing a cryptocurrency bill soon. Abdul Latif Al Jawhari, Governor of Central Bank of Morocco noted that the crypto CBDC committee created in February 2022 is putting in place an appropriate regulatory framework to combine innovation, tech and consumer protection.

He also noted that the crypto bill is being benchmarked against global experiences with IMF and World Bank. He also noted that this regulatory framework will also update the legislation on the fight against money laundering and terrorist financing.

In March 2022, during a session with media He revealed that the Central Bank of Morocco had created a council headed by him to oversee the required regulations for both cryptocurrencies and CBDCs. He stated, “We are in discussions with the Central Banks of friendly nations such as Switzerland, Sweden, and France as well as international financial institutions such as the IMF and World Bank to learn from their expertise and experience.”

Despite the fact that the Moroccan government considers crypto illegal in the country, Morocco has the highest number of crypto owners within the Arab region, followed closely by Egypt. 2.38 percent of Moroccan population own crypto.