Saudi Digital advisor discusses embracing DeFi at Ethereum Riyadh 2023

Saudi Digital advisor discusses embracing DeFi at Ethereum Riyadh 2023


The Ethereum Riyadh 2023 conference held on October 11th brought together an array of blockchain experts and entities, including Saudi Digital advisor for a Saudi governmental entity, who gave a presentation on embracing DeFi for business excellence. As per the press release, Abdulelah Aloshayni, digital transformation advisor at a Saudi Governmental entity provided a clear understanding of DeFi and discussed potential applications for large companies and government organizations.

This is no surprise given the work that for example SAMA ( Saudi Central Bank) is doing on CBDC, virtual assets and DeFi. Saudi Central Bank had hired Mohsen Al Zahrani to lead their digital assets and CBDC projects.

Abdulelah Aloshayni gave a presentation on “Embrace DeFi for Business Excellence.” He provided a clear understanding of DeFi and discussed potential applications for large companies and government organizations.

ETH Riyadh 2023 conference successfully took place at the CODE Lab of King Saud University at Riyadh, the capital city of Saudi Arabia. ETH Riyadh 2023, Web3 technology summit, was dedicated to the Ethereum ecosystem and blockchain technology, aiming to gather developers and builders from Riyadh, Saudi Arabia, and other regions in the Middle East.

ETH Riyadh emphasized a strong technical focus and aimed to provide insights from industry experts, fostering discussions on blockchain and Web3 cutting-edge technologies.

The ETH Riyadh organizing committee was composed of Tharawat Technology, Studio1727, ChainIDE, Coffee with Crypto, and Mask Network. The event received guidance and support from the Saudi Ministry of Communications and Information Technology, the Saudi Internet Association, and the KACST Digital Entrepreneurship Center. It was generously sponsored by Ankr (Title Sponsor), with presenting sponsorship from Chiliz, as well as support from Zilliqa, Adaverse, SAO Network, Onekey, Matrix World, and more than ten other Web3 projects.

Over 150 participants attended the event.  The ETH Riyadh 2023 conference kicked off with a keynote address by Tim Beiko, a representative of the Ethereum Foundation, who presented “Ethereum Governance Overview.” Tim Beiko outlined various ways to engage in Ethereum technology development and contributions, along with collaboration opportunities.

In the first roundtable discussion, Anton Agafonov, Product Lead at Zilliqa, Arpit Sharma, Managing Partner for the Middle East, India, and East Asia at the Near Foundation, and Aqeel Mohammad from the Ethereum Foundation discussed “L1/L2: Web3 Infrastructures and Innovations  from various perspectives, sharing their insights on Web3 infrastructure and innovation.

Xiao Wu, the founder of ChainIDE, then spoke on “The Road to Mass Adoption: Web3 Ecosystem in East Asia x Middle East Africa Region.” He shared insights into the development of Web3 ecosystems in East Asia and the Middle East and Africa regions, discussed the digital economy’s opportunities, and analyzed attempts and cases of large-scale applications in different regions.

While Dr. Waleed Aloriny, Chairman of the Saudi Internet Association, delivered a welcome address and moderated a special roundtable discussion on “Opportunities of Web3 Technology in Saudi.” Yasser Alobaidan, CEO of Tharawat Technology, Xiao Wu, Founder of ChainIDE, Stanley Wu, CTO of Ankr, and Alex Dreyfus, CEO of Chiliz, participated in the discussion. Representatives from various sectors engaged in lively discussions on Saudi’s entrepreneurial environment, policy regulations, Web3 development, digital economic opportunities, and international cooperation. Web3 entrepreneurs present recognized Saudi Arabia as a significant opportunity and expressed their desire to deepen their business and collaborations in the region.

ETH Riyadh 2023 marked a significant milestone as the first dedicated Web3 developer and blockchain technology summit in the Saudi Arabian region, particularly in Riyadh. This event represents a major advancement in the Web3 developer ecosystem of Saudi Arabia. ETH Riyadh has contributed to the flourishing of the local blockchain developer community, providing a platform for learning and networking for local developers and entrepreneurs.

The event has not only attracted local participants but also garnered attention from experts and investors from around the world. It serves as a crucial role in driving the development of blockchain technology in Saudi Arabia, offering a pivotal opportunity for exploring and shaping the future of the blockchain field. Furthermore, it plays a role in promoting digital innovation and economic growth in Saudi Arabia.

Xiao Wu, Founder of ChainIDE and a member of the ETH Riyadh organizing committee, expressed, “ETH Riyadh is the first summit in the Saudi region that focuses on blockchain technology and Web3 developers. It serves as a superhub for the local technology community and ecosystem development. Saudi Arabia is currently experiencing a pivotal period of rapid growth in the digital economy, and blockchain and Web3 technologies are integral components of the next generation of digital economies. We look forward to ETH Riyadh 2024, expecting to attract more builders in blockchain technology and facilitate increased collaboration and exchange among developers in the East Asia and Middle East and Africa regions.”

21shares announces approval of Saudi Shariah scholars for its Bitcoin ETP

21shares announces approval of Saudi Shariah scholars for its Bitcoin ETP

21Shares, issuer of digital asset ETPs, continues its international expansion with Shariah approval of its 21Shares Bitcoin ETP (ABTC) and 21Shares BOLD ETP (BOLD) from leading Saudi scholars.

Having launched the world’s first crypto backed ETP in 2018, the company continues to lead the market with the expansion of its products and a catalogue of listings on major global exchanges.

Amidst sustained interest from Saudi investors, the recent Shariah compliance of the BOLD ETP is significant in that the product is at the forefront to become Saudi Arabia’s first hybrid product. Rebalanced monthly, BOLD has a 25:75 Bitcoin to gold ratio, offering investors exposure to the traditional value of gold with the promising return rates of Bitcoin.

In the context of inflationary pressures, and heightened geopolitical risk, the products represent important risk and return diversifiers within both private and institutional portfolios.

According to the press release, “ As regional financial centers compete to provide the latest financial services products, 21Shares’ announcement is an important step in the company’s Saudi market entry. Under Vision 2030 Saudi Arabia is working to transform its financial services industry highlighted by increased digitalization across the economy and the widespread adoption of Blockchain.”

Ahead of the upcoming Future Investment Initiative, co-founder and CEO Hany Rashwan commented “Saudi Arabia presents exciting new market expansion opportunities for us. This milestone reflects our unwavering commitment to operating within the highest regulatory standards and providing a secure and transparent platform for our clients. Our tailored crypto investment solutions will resonate with Saudi investors. We look forward to partnering with local financial institutions, fostering trust, and contributing to the Kingdom’s thriving fintech ecosystem.”

Prior to this 21Shares Bitcoin ETP was listed on Nasdaq Dubai exchange to target major regions in 2022. Following its roadmap, the investment firm offers 46+ products launched almost over 12 exchanges in 7 different countries.

SandBox metaverse expands operations in Saudi with SandSoft collaboration

SandBox metaverse expands operations in Saudi with SandSoft collaboration

The Sandbox metaverse has announced further expansion into Saudi Arabia through a partnership with SandSoft, a Saudi based game developer, publishers, and investor powered by AAA talent.

Sandsoft will be a key partner in The Sandbox’s expansion into Saudi Arabia and the Middle East and will also be a driver in attracting local talent in the video game sector and growing education and job opportunities within the region.

The collaboration aims at building a team of Web3 gaming experts to create partnerships with local public and private industry actors, entertainment, IPs & Brands and celebrities to explore opportunities in gamified social experiences in The Sandbox, and to empower local creative talent by educating and onboarding developers and artists into its ecosystem.

“We’re excited to collaborate with Sandsoft in bringing new creators to contribute towards the open Metaverse and develop together a virtual neighborhood on our map. This partnership will allow brands and creators across Saudi Arabia and the Middle East to discover the creative opportunities The Sandbox provides,” said Sebastien Borget, COO and co-founder of The Sandbox. “It will also enrich The Sandbox’s global ecosystem with Saudi Arabia’s rich culture and history.”

“The Sandbox has great potential for game developers, creatives, brands and consumers from the Middle East and North Africa,” said David Fernandez, CEO of Sandsoft. “We’re pleased to announce this collaboration, which will drive opportunities for vibrant and diverse communities in Saudi Arabia and beyond, expanding on Sandsoft’s existing initiatives to nurture talent in the local gaming ecosystem.”

With a diverse global team of more than 60 people, Sandsoft is on a trajectory to become a leading mobile-first gaming powerhouse. Sandsoft’s ‘Press Start’ internship program aims to provide opportunities for talented young people in Saudi Arabia to enhance their game development skills under the supervision of leading games industry figures including VP Studio Yahsir Qureshi (formerly of EA, Zynga) and CTO Ahmed Sharif (previously at Meta, Sony, EA).

Saudi headquartered Blockchain insuretech startup TakaDAO raises $1.6 million

Saudi headquartered Blockchain insuretech startup TakaDAO raises $1.6 million

Saudi headquartered Blockchain Fintech startup, Takadao, has raised $1.6 million in pre seed round led by Draper Associates. Other investors include BIM, Core Vision ventures, Prince Sultan Bin Fahad bin Salman Al Saud.

Takadao builds community-owned financial services on the blockchain, with two flagship products in savings and loans (Takaturn) and cooperative life insurance. Takadao’s products are Shariah-compliant and target the Muslim population globally.

According to the Pew Research Centre: “Globally, the Muslim population is forecast to grow at about twice the rate of the non-Muslim population over the next two decades – an average annual growth rate of 1.5% for Muslims, compared with 0.7% for non-Muslims. If current trends continue, Muslims will make up 26.4% of the world’s total projected population of 8.3 billion in 2030, up from 23.4% of the estimated 2010 world population of 6.9 billion”.

Islamic finance grew 17% in 2021 to $4 trillion and is forecasted to keep growing in double digits for the next five years. Takadao extends the reach of Islamic finance by providing shariah-compliant loans and insurance through the blockchain, enabling global access even in countries where populations are largely unbanked.

Co-founder and COO, Sharene Lee, states: “Many of us, Muslims and otherwise, live in countries with unstable economies, weak currencies and high inflation. There is low access to the traditional banking system coupled with increasing distrust. Banks and insurance companies exist to increase shareholder value and this takes priority over consumer well-being. At Takadao, we build community-owned financial services whose shareholders are the users themselves. By vesting ownership with the end users, we ensure that their well-being is the primary focus. Furthermore, shareholder profits get redistributed among the end users. The only way we can do this is through the decentralized blockchain and cryptocurrencies.”

To this end, Takadao has two complementary products, Takaturn and Takasure. Takaturn is based on the ROSCA concept, commonly known as Jamaiyah in the Middle East, Ballot Committee in Pakistan, Tontine in parts of Africa, and chit fund in India. Takasure is a cooperative insurance product based on the Takaful model; it is still in development with an anticipated launch date of June 2024.

This marks the first investment for Tim Draper in a Saudi-based startup. Draper’s investment track record in Baidu, Skype, and Hotmail all precipitated significant changes in consumer behavior that have become the norm today, whether it’s email, search or voip. In recent times, Draper has backed Robinhood and Coinbase and significantly, he is an outspoken advocate of Bitcoin and decentralized finance.

On why he decided to invest, Draper said: “Takadao is one of those companies that you don’t know quite where it’s going to go, but if it succeeds, it’s going to be really impactful and make a big difference in the world and this is a world that I want to live in. The insurance business generally has become corrupted and Takadao is going right after the insurance business with something that’s very pure; the blockchain is pure, Bitcoin is pure, decentralization is pure.”

Takadao has a community of 10,000+ members that is growing by 5% week-on-week.

AI and Blockchain Egyptian founded Tribal Credit to enter into KSA

AI and Blockchain Egyptian founded Tribal Credit to enter into KSA

AI and Blockchain enabled Tribal Credit, based in USA and founded by Egyptian entrepeneurs, which empowers SMEs in emerging markets through a comprehensive suite of financial products,payment tools will be expanding into Saudi Arabia, using a renewed and increased debt facility of $150 million with Partners for Growth.

Renewed through 2025, this upsized facility is not only a testament to Tribal’s remarkable credit performance but also an accelerator for the company’s ambitious growth plans in Mexico, Saudi Arabia and beyond.

As per the press release, this significant expansion will notably enhance Tribal’s presence in Saudi Arabia in accordance with applicable laws and regulations, serving as the core of its global expansion strategy. Further, it will fuel the company’s continued growth across Mexico and Latin America, enabling Tribal to bring more SMEs into the fold of its innovative financial services.

With over $200 million in funding from industry-leading investors like SoftBank, QED Investors, BECO Capital, Stellar Development Foundation, and Coinbase Ventures, Tribal is making strides in bridging the financial inclusion gap. Led by a team of accomplished entrepreneurs, data scientists, and banking executives, and recognized as a top fintech by leading industry bodies.

Over the past few years, Tribal’s diligent investment in credit processes, tools, products, and team has culminated in exceptional credit performance, even amid challenging market conditions. This achievement has facilitated a healthy revenue mix from both financing and payment products, reinforcing the company’s robust financial health and laying the foundation for sustainable growth.

Partners for Growth (PFG), a global specialty lending firm focused on emerging growth companies, highlights Tribal’s exceptional credit performance and sophisticated financial products. “Tribal Credit has consistently demonstrated strong credit performance even in challenging market conditions.

Their continued investment in the credit process, tools, and the team has paid dividends,” says Armineh Baghoomian, Managing Director, Head of Europe, Middle East and Africa, Co-Head of Global Fintech at PFG. “In addition, they have innovated and launched financial products that truly meet the needs of SMEs in emerging markets. We’re thrilled to extend our partnership with Tribal and excited to support Amr, Duane and the team as they continue shaping the landscape of financial services.”

Tribal has reshaped the financial landscape for SMEs in emerging markets by prioritising accessibility to credit and digital payments. In doing so, it has empowered a remarkable number of SMEs to fuel their growth, making a lasting impact in these markets. Throughout its journey, Tribal has facilitated a substantial volume of transactions via its corporate credit cards and B2B cross-border products, demonstrating its crucial role in empowering emerging markets.

“We’re delighted to fortify our partnership with Partners for Growth,” says Duane Good, Tribal COO and Co-Founder. “We emphasize building enduring relationships with our clients, and nurturing our ties with capital partners is equally essential.” Good, alongside Amr Shady, Tribal CEO and Founder, sees the enhanced debt facility as a testament to Tribal’s mission and potential. “This funding will equip us with the necessary resources to seize exciting market opportunities ahead,” Shady adds. “We’re eager to continue our journey of developing innovative tech solutions to help SMEs thrive in emerging markets, especially in Mexico and Saudi Arabia.”

In 2021, Tribal Capital received an initial $3 million from Stellar Development Foundation to advance blockchain products built on stellar. Tribal Credit first raised 5.5 million USD through an investment round led by UAE  BECO Capital and Global Ventures.

At the time Amr Shady, Tribal Credit CEO stated, “Our entire mission is about empowering startups and SMEs in emerging markets with access to financial services. Our focus starts in Mexico, a country that will benefit from global accessibility to banking services previously only available to large corporations. By tapping into Stellar’s existing and growing network of anchors, we will be able to leverage existing digital assets to bring our customers with fast, affordable cross-border payments, credit card balance settlement, and other innovative features of the Stellar blockchain that will benefit our global users.”

In addition Mohamed Elkasstawi, Tribal Credit Co-Founder and Chief Strategy Officer who leads the blockchain vision, strategy, and execution also noted “We see blockchain, and our integration with Stellar specifically, as a strategic next step for our business, offering us the ability to provide cheaper, faster payments for our customers,” said. “Working with the Stellar ecosystem, we’ll be able to leverage the network to deliver on some of our most important use cases — like facilitating  cross-border payments between businesses in previously underserved markets. This is only one of many exciting blockchain projects we’re working on in partnership with SDF.”

MENA receives $389 billion worth of crypto with Saudi Arabia seeing biggest growth

MENA receives $389 billion worth of crypto with Saudi Arabia seeing biggest growth

Chainalysis has completed its MENA section of its 2023 Geography of Cryptocurrency Report which will be out soon. In the report the MENA region is the 6th largest crypto economy of any region in 2023. There was an estimated $389.8 billion in on-chain value received between July 2022 and June 2023. This represents nearly 7.2% of global transaction volume during the period studied. However it is much lower that what was received in July 2021-July 2022.

MENA based crypto users had received $566 billion worth of cryptocurrency in one year from July 2021 to June 2022 which at that time was a 48 percent increase from 2020-2021.

MENA is also home to three of the top 30 countries in this year’s index: Turkey (12), Morocco (20), and Iran (28). However, Turkey dominates in terms of raw transaction volume, but interestingly Saudi Arabia comes in third in terms of crypto value received, with UAE coming in at number two and Turkey taking number one place.

Centralized exchanges and DeFi were the top services for receiving crypto value in the MENA region, with UAE receiving much higher share of crypto activity on DeFi protocols compared to other countries in MENA. In addition UAE crypto services were split almost equally between centralized exchanges and decentralized exchanges, while in KSA for example 48.6%went to centralized exchanges and 38.8% to decentralized exchanges.

According to the report no country has witnessed the growth of crypto transaction volume like Saudi Arabia has. KSA has witnessed year-over-year transaction volume growth of 12.0%. In fact, Saudi Arabia is one of only six countries to see any year-over-year transaction volume growth during the time period studied.

Chainalysis found that the crypto value received by the UAE was over US$34.9billion representing a decrease of 17% over the previous year. In Qatar there was a 26% decline, Oman 49% decline, Jordan 55% decline, and Lebanon 96% decline.

One of the most interesting findings was in the UAE where the majority of crypto transactions were for institutional investors. 67% of crypto transactions valued over $1 million were by institutional investors, while retail investors (up to $10,000) accounted for just 4.63%

“The fact that by far the larger portion of crypto investments in the UAE is for institutional and professional sized transactions, indicates an eagerness from organisations and high-net-worth individuals to add cryptocurrency to their investment portfolios. This market confidence is validation of the efforts being made by the country’s leadership to offer commendable regulatory clarity, and establish the nation as a global crypto hub,” said Kim Grauer, Director of Research at Chainalysis.

Saudi Arabia to host first Blockchain ticketed event, the Web3 Summit Blockchain and Beyond with IR4LABS

Saudi Arabia to host first Blockchain ticketed event, the Web3 Summit Blockchain and Beyond with IR4LABS

Saudi Arabia based IR4LAB, a specialized firm in disruptive technologies such as Blockchain and Artificial Intelligence with a MENA presence is implementing the first Blockchain enabled registration and certificate of attendance solution for the inaugural Blockchain Research Institute (BRI) Web3 summit being held on October 19th at the Four Seasons hotel in Riyadh KSA.

IR4LAB will be utilizing its blockchain based solution DocCerts to manage registration, and certificates of attendance for the inaugural Web3 Blockchain and beyond summit organized by the globally renowned Blockchain research Institute.

The Blockchain Research Institute Middle East, with branches all around the world, is known for their yearly summits led by their partner, the legendary Dr Don Tapscott who will be flying for the first time to the Kingdom addressing C-suites audience focusing on the topics of Blockchain for Oil&Gas, Supply chain & logistics, Smart Cities, Banking &Finance and Women in Web3. Organizers plan to hold this event yearly in Riyadh.

The Saudi Arabian events industry size was valued at $6.1 billion in 2021 and is expected to reach $17.6 billion by 2031. The solution implemented will offer, for the first time in the region, a blockchain registration certificate that will be granted to all attendees, be-it online or in-person.

The Web3 Summit: Blockchain and Beyond aims to bring together industry leaders, experts, and stakeholders to explore the advancements and potential of blockchain technology and web3. The summit will discuss five main relevant areas, all of which fall under the Saudi Vision 2030 focusing on the digital transformation which is currently happening in Saudi.

A keynote speech will be given by Dr. Don Tapscott one of the world’s leading Blockchain authors who has been vocal about the impact of technology on businesses and societies. Panels Topics will cover exploring the Use Cases of Blockchain in the Oil and Gas/Energy Market, implementing Blockchain in Supply Chain Logistics: Challenges and Best Practices, innovating Financial Services with Blockchain: Opportunities and Challenges, building the Cities of Tomorrow with Web3 Technology, and empowering Women in the Blockchain Ecosystem: Opportunities in a decentralized world.

Majd AL AFIFI Co-Founder and CEO of IR4LAB states, “Attendees and delegates to the summit will enjoy a novel event experience using blockchain technology. Our blockchain DocCerts solution will not only streamline the registration process and make it easier, simpler and more transparent but it will also grant certificates of attendance to attendees in a digital environmentally friendly fashion. We stand ready and work diligently to make blockchain a part of our everyday lives meeting the Kingdom’s Vision 2030.”

Mohamed EL KANDRI Co-Founder and CTO of IR4LAB, stated, “Blockchain technology can address four significant challenges in the industry: fake tickets, ticket scalpers and bots, security and data. I think that more than ever, it is crucial for organizers and venues to understand their audience better, to tailor specific offers and to create new and more qualified leads. Blockchain registration allows organizers to issue digital tickets that are unique, tamper-proof, and traceable. Additionally, blockchain enables organizers to track the entire lifecycle of a ticket, from its creation to its redemption, which can help prevent scalping and unauthorized reselling.”

Aline Daoud, Managing Partner at the Blockchain Research Institute Middle East added “We take pride in walking the talk. We have been internationally vocal about Blockchain and the successful use cases that are being implemented around the world; with the use of DocCerts solution in our event, we are allowing our attendees to have hands-on experience on a simple yet valid blockchain implementation. We look forward to having our prominent local, regional and international speakers who will be exposing other successful use cases covering the 5 themes that the summit focuses on, all of which are part of the Saudi Vision2030”

According to a report by MarketsandMarkets, the blockchain in the event ticketing market is projected to reach $468.3 million by 2023, with a compound annual growth rate of 39.3% from 2018 to 2023.

Another study by Grand View Research predicts that the global blockchain in the media, advertising, and entertainment market size will reach $1.57 billion by 2030, driven by the increasing adoption of blockchain in the ticketing industry.

The Web3 Summit Blockchain and Beyond will host 500+ delegates from the Gulf region and 70+ experts from all over the world created as a practical initiative aligned with the vision of 2030 objectives by paving the way towards Blockchain adoption under the emerging technologies umbrella set by the Kingdom’s vision.

Saudi Arabia moving forward with blockchain and Web3 through new royal partnerships

Saudi Arabia moving forward with blockchain and Web3 through new royal partnerships

Saudi Arabia is moving forward with Blockchain and Web3 with partnerships such as the one between Indian Beyond Imagination technologies, a blockchain Web3 tech company and Saudi Aba’ad Alkhayal software company Co-founded by Princess Hesah Al Saud.

With this partnership Beyond Imagination technologies will expand into the Middle East.

Aba’ad Alkhayal is a Saudi-based software company that leverages the latest technologies like blockchain and artificial intelligence to help businesses thrive in the digital age.

The partnership aims  to ideate, develop, and deploy solutions that will help Middle East clients with blockchain. The move comes as part of the company’s commitment to fostering blockchain adoption and innovation across various industries in the region.

“We are thrilled to embark on this exciting journey, committed to reshaping the future of technology,” said Princess Hesah Al Saud, Co-Founder, Aba’ad Alkhayal. “With this partnership, we envision a future where we harness the power of blockchain to unlock the full potential of our economy. This new beginning will pave the way for digital transformation, creating countless employment opportunities for our citizens and empowering our students with the knowledge and skills needed to embrace this digital revolution. Thus, we aim to drive positive social impact and create a better tomorrow in Saudi Arabia through technology.”

Beyond Imagination Technologies will provide its flagship solution BitMemoir to Aba’ad Alkhayal, which will help clients with digital certifications. Users can convert personal identifiers, property documents, and other sensitive materials into digital certificates, or NFTs, and store them in their own wallets. By utilizing blockchain technology, BitMemoir enables users to own their personal documents in perpetuity.

“We are excited to bring our cutting-edge blockchain solution to the Middle East, “said Mr. Nikhil Goyal, Co-Founder – Technology, Aba’ad Alkhayal. “Our expansion into this dynamic region marks a significant milestone in our journey to revolutionize industries and empower businesses with the potential of blockchain technology. We firmly believe that blockchain has the power to reshape the future, and we are committed to being at the forefront of this transformation.”

He further added, “By 2030, Saudi Arabia aims to unleash the full potential of its citizens and resources, embracing digital transformation to forge a brighter, interconnected future for all. This ambitious path includes the transformation of the Kingdom into a fully digitized society, a beacon of technological advancement and innovation. Thus, being the frontrunners in the blockchain space, we want to contribute to this aim of the nation to our full potential.”

As part of its expansion strategy, Beyond Imagination Technologies plans to establish more regional offices and collaborate with local partners to enhance its reach and support customers more effectively. By engaging with the vibrant Middle Eastern community, Beyond Imagination Technologies seeks to foster knowledge sharing, workshops, and events to promote blockchain education and awareness.

Saudi Arabian SABIC petrochemical manufacturer launches blockchain project to trace their carbon footprint

Saudi Arabian SABIC petrochemical manufacturer launches blockchain project to trace their carbon footprint

Saudi based SABIC, one of the world’s largest petrochemicals manufacturers has launched a blockchain pilot project to trace the carbon footprint of specific material streams from end to end. SABIC will work with Circularise, a blockchain software provider.

According to SABIC release, blockchain technology has emerged as a potentially efficient solution to improve the process that can bolster transparency and accountability while minimizing risk across supply chains.

SABIC’s project will employ Circularise’s technology to capture emissions across the value chain by deploying a consistent methodological and reporting framework accepted by the industry. Scope 1 and Scope 2 data captured at the material level can be used to generate Scope 3 CO2 emissions for the full value chain of targeted industries.

In addition to increased transparency, the use of Circularise’s Smart Questioning technology will benefit SABIC’s entire value chain by reducing the administrative efforts associated with the data collection and providing access to upstream and downstream data provided by value chain participants, from recyclers to converters to original equipment manufacturers, among others. 

“This blockchain pilot project reaffirms SABIC’s dedication to accelerating the sustainable transformation of our industry through strategic partnerships and innovative new technologies,” said Waleed Al-Shalfan, Vice President of Polymers Technology & Innovation at SABIC. “Accurately mapping emissions, especially Scope 3 emissions, will allow SABIC and others to identify and minimize hot spots along the value chain, a critical tool in our pathways to decarbonization. We encourage other upstream and downstream partners to join and consider how this technology can unlock sustainable growth at every level moving forward.”

“We’re proud to collaborate with SABIC in tackling the pivotal challenges of Scope 1, 2, and 3 emissions accounting, which encompass issues like information accessibility, confidentiality, and scalability of data sharing among suppliers,” said Mesbah Sabur, Founder of Circularise. “As part of this project, Circularise aims to pilot blockchain-powered digital product passports and help businesses to track product emissions on a large scale and over time, generating comprehensive product life cycle emission reports.” 

This project marks another way in which SABIC is leveraging innovative partnerships to reduce emissions and help meet its commitment of becoming carbon neutral by 2050. Earlier this year, SABIC joined Together for Sustainability (TfS), a procurement-driven initiative created by chemical companies with the goal of assessing, auditing, and improving sustainability practices within their supply chains. As a member of TfS, SABIC will foster collaboration around increasing transparency in upstream value chains to support further reductions in Scope 3 greenhouse emissions. 

This collaboration with Circularise also marks SABIC’s second blockchain application project. Last year, SABIC launched a pilot project with Finboot, Plastic Energy, and Intraplás to evaluate the use of blockchain technology in supporting end-to-end digital traceability of circular feedstock in customer products.

USA based Meer Energy aims to bring Carbon Credit NFTs, Bitcoin mining and Blockchain AI datacenters to KSA

USA based Meer Energy aims to bring Carbon Credit NFTs, Bitcoin mining and Blockchain AI datacenters to KSA

USA based Meer Energy, Co-Founder Abdullah Han, was one of the speakers in June 2023’s 10th Arab China Business Conference, in Riyadh KSA, under the patronage of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, where he met with positive feedback for his concept of developing a Blockchain AI Bitcoin and carbon credit mining datacenter in the country.

In an interview with LaraontheBlock, Han explains why he participated at the Arab China Business Conference and how his business model was received.

According to Han, Meer Energy a US based company for Bitcoin mining which utilizes flared gas to power its datacenters is working to expand its business model which includes Blockchain, AI datacenter as well as Carbon Credit tokenization to the Middle East, African and Asian region.

Han believes that the future of industrialization will be driven by blockchain and AI (Artificial Intelligence) and this requires energy and hashpower, more specifically sustainable hashpower that can support AI and Blockchain development of use cases.  He states, “We are trying to use waste energy from oil and gas, flared energy and renewable energy to create cheap energy that powers AI and Blockchain, Bitcoin mining, and carbon credit tokens. We already have a joint venture with Asian investors to deliver datacenters in the USA.”

Meer Energy’s value proposition is to utilize the flare gas sites in the MENA region, such like those in Iraq, KSA and others to power big datacenters. As he explains, countries such as Iraq have a huge headache in dealing with their flared gas as they are unable to connect it to the electricity grid given their remote location, and the inability to connect pipelines to dry processed gas. So by combining energy from flared gas with AI and Blockchain a lot of projects become viable and economically  attractive.”

For Han, Meer Energy will use 95% of the hashpower of its datacenters to mine Bitcoin, and use the remaining 5% to power high performance blockchain, and AI projects. He gives the example of carbon credits NFTs which will be mined directly from the datacenter. The datacenter will use smart contacts to monetize carbon credits into NFTs creating revenues of $1 million per month.  He explains, “Each Megawatt produced by a datacenter can produce 5000 carbon credits, nearly 1 million dollars in revenue alone , I call it your mining.”

Another example that HAN gives for utilizing datacenters is in the mining of CBDCs. As Han explains, “While countries in developing nations start to issue CBDCs they will face two issues either using private blockchains such as for example Hyperledger or public blockchains such as Ethereum, they will face issues of not holding hashpower of these blockchains, not having a stake in them. By utilizing datacenters on the sovereign ground of a country, central banks can utilize flared gas to power their own CBDC.”

So Han believes that while governments may not want to discuss Bitcoin mining they are interested in discussing how integrated datacenters can support blockchain use cases in combination with AI while affording a sustainable climate program using carbon credits.

According to Han, he is approaching MENA governments and investors with a new concept. While in the USA, Bitcoin is connected to Wall Street, in developing countries the government is behind it. 

As per Han today we are seeing a move towards de-dollarization in KSA, Russia, Iran, and UAE. He explains, “All governments will realize that strong money will drive weak money out of the system. In the 1970s crude oil and dollar were anchored together, but today we can have what I call gas Bitcoin or energy Bitcoin, which could replace the petro dollar.  The new possible global monetary system could be Bitcoin, utilized as a new global reserve system and settlement system. Those leaders with a vision and forward looking approach understand this. They by mining Bitcoin can have a share of a global decentralized banking system. This is one way to understand Bitcoin from a geo-political perspective. So when I speak to MENA policy leaders I don’t invite them to mine Bitcoin, I invite them to subscribe in shares to a decentralized global bank.”

Han believes this could be tested in for example NEOM city which is powered by Blockchain and AI, because in the city of the future there is also need for the governance of the future and this includes circulation of money. This according to Han could be tested in a controlled environment to see what happens.

Meer Energy is seeking to raise $5-6 million at a valuation of $40-50 million. During Han’s trip to KSA there was very positive feedback not only from investors but policy makers. Han states, “The concept was well received.” 

As for the future Han believes that his proposal allows Bitcoin mining datacenters to survive the halving of Bitcoin. He states, “By combining bitcoin mining with carbon credits regardless of what happens to the price of Bitcoin after halving whether it remains the same or goes up to $50,000 we will still be able to make revenues from carbon credits and will survive while other companies go bankrupt.”

He also believes that these datacenters can create smart contracts for Islamic economy whether related to Hajj, Sukuk and others.

According to the data provided by the Hashrate Index, bitcoin miners in the UAE should produce approximately 13 EH/s, which is equivalent to 3.7% of the total Bitcoin hash rate at an assumed average energy efficiency of 30 J/TH. This comes as the UAE becomes an attractive hub for crypto mining. 

Marathon Digital Holdings confirmed earlier in 2023 that the company along with Abu Dhabi based Zero Two (Registered name FS Innovation), an emerging blockchain and digital assets infrastructure development company, will be launching the two digital asset mining sites with a combined capacity of 250 Megawatts in the sustainability hub of Abu Dhabi Masdar City and the port zone of Mina Zayed by the end of 2023.