Saudi Car agent utilizes blockchain platform for trade transaction with China

Saudi Car agent utilizes blockchain platform for trade transaction with China

Saudi Arabian Taajeer Group, the exclusive agent for MG cars in the Kingdom has utilized the Blockchain enabled Contour platform in its importing of cars from China. HSBC, Chinese SAIC Motor, and KSA Taajeer group executed a successful blockchain enabled trade finance transaction on the Contour platform.

As per the news this is a regional first for the automotive sector and a first in KSA.

Contour is a digital trade finance network that is building a global standard for trade by bringing together the world’s banks, corporates and ecosystem partners, onto a common, digital, and trusted network.

The Contour platform enabled end-to-end digitisation of the credit documentation required for Taajeer to import a shipment of cars from SAIC in a process that is up to 10 times faster than using physical documents. 

Chaker Zeraiki, Head of Global Trade & Receivables Finance for HSBC UAE, said: “Our digitising at scale means making customers’ lives easier and, with Contour it means we’re cutting costs, reducing risk and speeding up trade. Bringing these benefits to the automotive sector and Saudi Arabia are a measure of our international connectivity and our global leadership in trade banking.”

Trade finance powers much of global trade and, according to HSBC, distributed ledger technology has the potential to reduce transaction times from between five and ten days to under 24 hours, therefore unlocking working capital and enabling more trade to be conducted between markets.

Carl Wegner, CEO of Contour said: “This transaction marks an important milestone in the Middle East’s automotive sector, proving that distributed ledger technology is successfully transforming the trade finance ecosystem. We are excited about the potential of wider adoption in this sector, as having a digital trade solution is no longer an option, but the new standard for the industry.”

The use of Contour’s platform also makes the transactions more secure as data shared on the network are indisputable and transparent, reducing the risk of fraud.

Tom Lee, Managing Director of MG Motor Middle East, owned by the SAIC Group, said: “It brings me great joy to continue to offer ‘best-in-class’ service through an integrated supply-chain programme that can make our operations even more seamless. With HSBC as our partner, we will proactively provide solutions to ensure our customers’ demands are met safely and on schedule. I believe that our bright future is filled with opportunities and our customers can rest assured they will be met with consistent high-quality supply from us, anytime and anywhere in the Middle East region.”

The transaction is also a first in Saudi Arabia where, according to David Leslie, General Manager of the Trade Finance Business at SABB, increased digitisation is aligned to the Vision 2030 initiative to make the Kingdom a regional trade hub. “Blockchain can significantly reduce friction and increase the pace of trade for companies trading with Saudi Arabian entities.”

KSA’s Saudi National day to be held in Decentraland metaverse

KSA’s Saudi National day to be held in Decentraland metaverse

KSA Bold Group, a creative advertising agency, has partnered with King Abdulaziz Foundation for Research and Archives ( Darah) to bring Saudi National day to the Decentraland metaverse.

For Saudi Arabia’s 92nd Saudi National Day Celebration, participants will experience Saudi Culture in a new digital realm, the metaverse. The virtual Saudi National Day celebration will begin on the 22nd of September until the 24th of September 2022.

For this pioneering initiative, The Bold Group collaborated with King Abdulaziz Foundation for Research and Archives (Darah) to make the user experience come to life. This strategic partnership will enable an authentic immersive experience as both Darah strive to make Saudi Arabia’s history and culture accessible to the world, and to educate future generations on the full breadth of the Kingdom’s great heritage.

 Abeer Alessa, Co-Founder and Chief Executive Officer of The Bold Group said, “We are activating the metaverse in an impactful way by paying tribute to Saudi National Day. Fusing our past with our future, we are honouring the storied history of the Kingdom, preserving our heritage and displaying it with pride for people to engage with in the new digital realm.” Our focus has always been to bring value to our partners and community, and this unique experience paves the way for others to discover exciting new opportunities in the market. In line with the Kingdom’s transformative outlook for the Vision 2030, The Bold Group embraces the change and strives to be the pioneer of new and emerging technologies in the digital sphere.”

The Bold Group’s multi-faceted Saudi National Day experience in the metaverse will be held on the ‘Decentraland metaverse. It will feature multiple layers of Saudi culture in an open-air museum, with each level displaying various representations of the beauty of Saudi Arabia. The experience will also feature exclusively tailored Saudi national attire, created and inspired by the different regions of the Kingdom. These iconic pieces will be made available as wearable NFTs for event visitors. The Bold Group will also be providing the POAP (Proof of Attendance Protocol) as a limited edition collectible NFT for users to showcase with pride their participation in the world’s first Saudi National Day metaverse celebration.

Ziad AbuRjaily, Creative Technology Director in the Bold Experience Unit said, ” The idea to usher the Saudi National Day, a historically traditional celebration, into the new era of technology was inspired by the challenge of convening people across the Kingdom’s 13 different regions to celebrate Saudi Arabia in one virtual space.”

Saudi Aramco invests millions into Blockchain smart contract provider

Saudi Aramco invests millions into Blockchain smart contract provider

For the fourth time since 2019, Saudi Aramco Energy Ventures, a subsidiary of Saudi Aramco has participated in an investment round in Data Gumbo, the blockchain enabled smart contract provider. This time Data Gumbo raised 4 million USD in its Series C round led by Saudi Aramco Ventures and Equinor, Norway’s energy operator.

In 2019, Data Gumbo the Houston based blockchain Technology Company which had developed a Blockchain-as-a-Service (BaaS) platform to streamline smart contracts management for industrial customers, completed a 6 million USD Series A equity funding round co-led by Saudi Aramco Energy Ventures, and Equinor.

Then in 2020, Data Gumbo, closed its Series B funding round of 4 million USD led by new investor L37, a Bay Area and Houston-based venture capital company, with Saudi Aramco Energy Ventures as a participant in the round.

In 2021 once more Data Gumbo closed a Series B funding round totaling 7.7 million USD with follow-on investments led by Equinor Ventures, and Saudi Aramco Energy Ventures.

So far, Saudi Aramco Energy Ventures has been one of the consistent investors in Data Gumbo. So it was no surprise to once again see Saudi Aramco invest in Data Gumbo’s Series C round, and be a lead investor as well. Saudi Aramco given the amount of investments raised to date by Data Gumbo, has definitely invested millions into the startup.

This funding round follows a year of impressive growth for Data Gumbo, which has introduced the first ever Smart Contract Marketplace with forty smart contract templates ready to be deployed for immediate reduction in transactional friction and grown to over 180 enterprises participating in Data Gumbo’s smart contract network.

Data Gumbo also opened its offices in KSA in 2022. At the time Data Gumbo stated that it was establishing a local presence to take advantage of the regional business opportunities ripe for smart contract network adoption.

Commenting on the recent fund raising, William Fox, CEO of Data Gumbo stated, “We have continued to lead the way in the adoption of smart contracts for industrial use. The partnership with Equinor and Saudi Aramco, and their associated supply chains and partnerships, will continue the momentum for the Data Gumbo’s smart contract network.”

By tapping into existing IIoT data sources to trigger confirmation and payment automation of contractual commercial terms, organizations are able to eliminate the time-consuming process of validating invoices and transactions and fully automating the procure-to-pay and order-to-cash processes. 

Data Gumbo plans to expand its reach, helping any organization who captures field data today to streamline their back office processes and realize time and cost savings.

“While we started in energy, we already have value for bulk commodity haulage, trucking and shipping, with plans to parlay our momentum into other global industries,” commented Andrew Bruce, Founder of Data Gumbo. “Wherever two or more organizations share a contractual relationship that can be verified with a digital source of data, opportunities abound to realize efficiencies and cost savings utilizing our blockchain network.”

Frank Andrasco, Senior Investment Director, Saudi Aramco Energy Ventures stated, “Distributed ledger technologies bring win-win efficiencies between industrial companies and their suppliers, and Data Gumbo is at the forefront of introducing this innovation. While they have started in the energy sector, Data Gumbo’s platform has broad industrial applicability.”

To date Saudi Aramco’s Venture arm has participated in all the investment rounds of Data Gumbo, which  has raised a total of close to 21 million USD. One thing known for sure is that Saudi Aramco is backing the Blockchain smart contract service provider, and much more will be seen in the future.

Security token regulations to be issued in Saudi Arabia by end of 2022

Security token regulations to be issued in Saudi Arabia by end of 2022

In an interview with CNBC Al Arabia, Yazeed Saleh Aldemaigi Deputy, Strategy & International Affairs, at Saudi Capital Market Authority (CMA) announced that regulations for Security Token offerings (STO) will be out before the end of 2022 in Saudi Arabia.

As per the interview, application for STO offerings will be available on the CMA digital platform by end of 2022. He added that the Fintech Lab at CMA has been working on finding the most appropriate environments for FinTech startups.

The STO regulations that will come out at the end of 2022 will help to attract foreign investment firms interested in the FinTech domain in KSA as well as support local companies.

The Fintech Lab from CMA was launched in 2017.  It aimed to provide a regulatory framework that is conducive for the innovation of Financial Technology (FinTech) in the capital market within the Kingdom.

One of the business models under the Fintech Lab was related to use of Distributed Ledger Technology (DLT) to arrange the Offering of Securities and Custody Services. It is a platform that uses Distributed Ledger Technology (DLT) to arrange the offering of securities (Sukuk as a preliminary stage) to investors, in coordination with the Issuer and the Authorized Person (AP) assigned by the Issuer as an Offering Advisor.

Saudi PetroChemicals manufacturer launches traceability Blockchain pilot

Saudi PetroChemicals manufacturer launches traceability Blockchain pilot

Saudi based SABIC, petrochemicals manufacturer majority owned by Aramco, has launched a pilot project to investigate utilizing blockchain technology to support end to end traceability of circular feedstock. KSA based SABIC has partnered with Finboot, Plastic Energy, and Intraplás.

SABIC has launched this pilot project to demonstrate the feasibility of using a blockchain-based, value-chain IT application. SABIC’s is the first project of its kind in the industry to trace the product from feedstock production to converter, going further than previous industry applications of blockchain in end-to-end tracing. The platform offers reduced costs, time and improved data integration for all value chain partners.

Waleed Al-Shalfan, Vice President Polymers Technology & Innovation at SABIC, said: “At SABIC, we have a deep commitment to innovation and technology that can help us to deliver more sustainable solutions to our customers. Our vision to create a circular economy for plastics requires a total transformation of the value chain, and pioneering partnerships with partners both upstream and downstream. Blockchain technology holds exciting potential for the provision of our TRUCIRCLE products to customers, and therefore for our commitment to supporting customers in their sustainability ambitions.”

Finboot’s MARCO software solution acts as middleware layer and will track the TACOIL produced by Plastic Energy from their recycling process, the delivery of this oil to SABIC for conversion into its TRUCIRCLE circular polymers, and finally the delivery of the polymers to Intraplás for conversion into their packaging solutions. The technology also ensures that all data gathered remains immutable while shared across suppliers, customers and regulators – providing transparency, auditability and accountability in a complex industrial ecosystem.

 Juan Miguel Pérez Rosas, CEO of Finboot, commented: “We are excited to embark on this pilot as it will significantly contribute to the development and progression of a circular economy, while setting the example for best practice for the global manufacturing sector. SABIC is at the forefront of its industry, always looking to the future and investing in technology and innovation to accelerate its digital transformation that supports the circular economy.

Marisa Alves, Chief Procurement Officer at Intraplás, also stated, “As a global provider of packaging solutions, Intraplás has the clear ambition to make sustainable packaging broadly available to the market, without compromising the environment and food safety, something that boosted the participation on this important project with our supplier and long-term partner SABIC. The blockchain technology project will reinforce our objectives even more, as it will help us to improve performance, create additional transparency to the supply chain and promote digital traceability for our certified circular packaging. This is an Intraplás contribution, through more concretely sustainable solutions, to a real circular economy.”

 Carlos Monreal, Founder and CEO of Plastic Energy commented, “As a company who has developed our own innovative technology, we at Plastic Energy are excited to explore the opportunities that new technologies like blockchain can offer. This pilot has the potential to make a big impact in the value-chain, providing a new level of traceability and transparency for recycled plastics, and demonstrating how advanced recycling can play a valuable role in the circular economy of plastics

Saudi Central Bank Moves forward with virtual assets and CBDC program

Saudi Central Bank Moves forward with virtual assets and CBDC program

The Saudi Central Bank, better known as SAMA, has appointed Mohsen AlZahrani, former Managing Director of Financial Services at Accenture KSA as Virtual Assets and CBDC (Central Bank Digital Currency) program Lead. AlZahrani recently announced this on his LinkedIn profile.

This is a significant announcement given that KSA Central Bank has been working on its CBDC project since it announced its Aber project with UAE back in 2019. At the time both The Saudi Arabian Monetary Authority (SAMA) and the United Arab Emirates Central Bank (UAECB) clarified in a joint statement that one of the objectives of launching the common digital currency project ” Aber” is for use in financial settlements between the Kingdom of Saudi Arabia and UAE through Blockchains and Distributed Ledgers technologies.

 It was known that IBM was one of the vendors working on the project.

In addition six commercial banks, three from UAE and three from KSA participated in the joint digital currency project “Aber”. The banks were AL Rajhi, Alinma ,Riyadh Bank, FAB , Emirates NBD , Dubai Islamic bank.

 In 2020 both Central Banks released their final report on Aber Pilot. As per the report Aber project identified further areas that need to be explored in the future if the approach of a single digital currency is to be implemented. The key amongst these was the need to understand impacts to the monetary policy of participating states and to address, in particular, the means by which interest is calculated and disbursed to the commercial banks in each jurisdiction and how this can be applied with a single digital currency.

The report also noted that in terms of future work, there were many directions that could evolve. Firstly, it could provide the basis for a backup to domestic and regional RTGS; providing a more distributed and potentially resilient alternative to the centralized systems that are implemented or being implemented today. Secondly, by offering DLT-based payments rails,  the possibility to expand to Delivery versus Payment (DvP) scenarios such as using the Aber network as a means of settlement for other forms of transaction, such as the sale of bonds or other dematerialized assets. Thirdly, there was the possibility of extending it geographically to include regional or other international central banks or linking heterogeneous networks together.

In 2021 Saudi’s Central Bank in a statement to Iqtissadiah news entity stated that were making efforts to support innovation by looking at various technologies including CBDCs mostly built on DLT and Blockchain platforms.

Then in 2022 Price Water house Coopers published their 2022 Central Bank Digital Currency (CBDC) Index and stablecoin overview. In the PWC report when showcasing the progress of Central Banks in terms of wholesale CBDC front, both the UAE and the Kingdom of Saudi Arabia (KSA) were among the top 10 globally.

As conclusion the recent appointment showcases the commitment the Central Bank of Saudi Arabia has towards not only CBDC but virtual currencies as well. We will just have to wait and see!

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. 

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.