Saudi boosts crypto future with growing investors.

  • July 19, 2022
  • Jennifer Moore
Saudi boosts crypto future with growing investors.

The positive climate of Saudi Arabia had made the country a substantial market for cryptocurrencies with a surging interest in the crypto community and huge consumer footing. The increase in the number of investors and the adoption of cryptocurrency in Saudi Arabia has marked the nation as a global crypto hotspot. It ascertains the potential of crypto in the North MENA and the Middle East countries.

A Report Shows A Substantial Growth In Crypto Investors

A recent survey conducted by a renowned crypto exchange, reports that around three million Saudi Arabians (that is almost 14% of the population) have newly started investing in cryptocurrency as of May 2022. These people have either traded currencies or are at present owning crypto within the past six months. 

The other 17% of the population are curious about the digital asset and are plausible for investing in the currency in the coming six months. According to the survey, a long time of interest had been observed among crypto investors in the Arab region. The first few months of 2022 have observed a 49% increase in crypto investors and they intend to increase the investment amount in the upcoming months.

The investor interest changed course in the second quarter of the year, towards a prudent technique for crypto investments especially due to the crypto crash. In Saudi Arabia, 31% of the crypto owners asserted that they want to keep their crypto balance rather than increase it. The survey also says that at the same time period, the investors with meager income sold their portion of crypto holdings.

Also Read: Japan To Have A Clear Regulatory Framework For Stablecoins

Saudi Arabia Encourages Young Crypto Investors

Saudi Arabia has made a remarkable footprint by showcasing such a high penetration of new investors. With 76% of them having zero to one year of expertise in the market. Whereas, 49% of these investors began trading with crypto only after six months. 

According to the survey, the demographics exhibit that 63% of these crypto investors are men. This gender ratio has been consistent throughout the years. Young crypto investors within thirty years consist of one-third of the population. There has been significant growth in young investors up to 36% within the second quarter of the year.

Also Read: Advantages and Use Cases of CBDCs in the Wholesale Market

What Triggered The Crypto Mania In Saudi Arabia?

Majority of the crypto investors in the country purchase cryptocurrencies using fiat money and participate in spot trading every month. Some Arab theologians consider this form of trading halal. 

According to a research firm, the Oil company Saudi Aramco is responsible for the increasing number of crypto enthusiasts. This is because the company made a major investment in its oil trading firm Vakt and invested five million dollars. This initiative might have triggered the rise to automate and digitize post-trade processing. The oil trading firm was also rumored to commence bitcoin mining procedures.

In Conclusion

Although there has been no official crypto regulatory framework prepared by the country. Thereafter, the government agreed to support the perspective towards blockchain technology. Therefore, with a positive outcome through the use of digital assets.

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