Saudi Arabia Has Significant Crypto Usage

Saudi Arabia is an important market for digital currencies because of the high level of penetration and adoption of crypto in the country. This demonstrates the potential for expansion in the Middle East and North (MENA) area.

A survey that was carried out by a cryptocurrency exchange called KuCoin found that as of May 2022, approximately three million Saudi Arabians, which is equivalent to 14 percent of the adult population aged 18 to 60, have become crypto investors. These individuals either currently own cryptocurrencies or have traded in cryptocurrencies within the previous six months.

Another 17 percent of respondents are considered to be crypto-curious, and it is likely that they will invest in cryptocurrencies within the next six months. According to the conclusions of the survey, potential investors in cryptocurrencies in Arab nations have a long-term interest in the cryptocurrency market. In the first three months of 2022, nearly half of crypto investors had the intention of increasing the amount they had invested in cryptocurrency over the subsequent three quarters.

As the bear market began in the second quarter of 2022, investor mood began to change toward more conservative methods of cryptocurrency investment. This was in response to the market. A survey conducted in Saudi Arabia with owners of cryptocurrencies found that 31% of respondents claimed they would rather maintain their current cryptocurrency balance than increase it. According to the poll, during the same time period, investors with lesser incomes disposed of a share of the securities they had previously accumulated.

There has never been such a high number of new market entrants as there are in Saudi Arabia. Seventy-six percent of crypto investors have less than a year of experience in the industry, and nearly half of them have only recently started trading cryptocurrencies. This high number of new market entrants is unprecedented.

According to the findings of the study, males make up 63 percent of those who invest in cryptocurrencies. Over the course of several decades, there has been no discernible shift in the gender distribution. Young cryptocurrency investors under the age of 30 make up at least a third of the total population and have increased to 37 percent as of the second quarter of 2022.

The other half of crypto investors buy digital currencies using fiat currency and participate in spot trading on a monthly basis. Spot trading is the only type of cryptocurrency trading that some Arab theologians regard as halal. According to a report by Cointelegraph, the Saudi Arabian Oil Company (Saudi Aramco) stoked excitement among cryptocurrency enthusiasts by investing $5 million in a blockchain-based oil trading startup called Vakt in the previous year. It was rumored that Saudi Aramco would start mining Bitcoin (BTC) in conjunction with this program, which aimed to digitize and automate the post-trade procedures.

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In spite of the fact that the Kingdom of Saudi Arabia has not yet issued any formal legislation concerning cryptocurrencies, the government appears to have taken a supportive position toward digital assets and blockchain technology.

The Saudi Arabian Monetary Authority (SAMA) and the United Arab Emirates Central Bank (UAECB) jointly announced the launch of a new digital currency in 2019. The name of the new currency is Aber. The fiat currencies of the two countries will be used as backing for the cryptocurrency, which would be utilized for making payments across the border between the two countries.