The Gulf region is predicted to emerge as a global capital for the crypto industry in the next five years, with the best entrepreneurs, venture capitals and developer communities converging to build and scale globally disruptive crypto projects.
Due to its crypto-friendly laws, which have made it a preferred location for enthusiasts of digital currencies, the United Arab Emirates has emerged as a hub for the industry in response to the worldwide cryptocurrency boom. Dubai and Abu Dhabi are competing to dominate the Bitcoin market.
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How the Fintech Framework is Set Up in the Gulf Region
Technology is at the centre of the uncharted travels the Gulf states are taking toward economic diversification. While the region’s enthusiasm for the future has been well-documented, it has largely relied on following rather than initiating innovation trends to satisfy its voracious appetite for technology.
However, this alters the expanding global financial technology (fintech) market. Through several regulatory efforts, the UAE, Bahrain, and now Saudi Arabia are emerging as legitimate arbiters of change and disruptive innovation in the global arena. Former Emirates Investment Bank global markets head Amir Tabch thinks there are similarities between traditional finance and cryptocurrency.
He declared that he plans to hire more bankers to “bridge the gap” between the two industries.
The Gulf states are looking to fintech as a win-win solution in light of the declining long-term demand for fossil fuels, the crushing need to provide jobs for the young, and the need to build a sustainable future. Local governments are exerting every effort to persuade startups to partner with larger financial institutions in recognition that the success of fintech depends entirely on cooperation.
Opportunities for Wealth in the Crypto Industry
The Gulf states are looking to fintech as a win-win solution in light of the declining long-term demand for fossil fuels, the crushing need to provide jobs for the young, and the need to build a sustainable future. Local governments are exerting every effort to persuade startups to partner with larger financial institutions in recognition that the success of fintech depends entirely on cooperation.
In 2018, the worldwide fintech market was estimated at $128 billion, and by 2022, it is anticipated to reach $310 billion. According to the Global Citizens Report, the UAE’s total private wealth climbed by $47 billion between 2019 and 2021 as 5,600 billionaires moved there.
The Chainalysis analysis also reported an estimated $26 billion in transaction volume between July 2020 and June 2021; the UAE is the third-largest crypto market in the Middle East, after Turkey and Lebanon. Despite being relatively small on a global scale, the region’s crypto footprint grew by about 1,500% from the previous year, based on the data.
Particularly in the case of cryptocurrencies, the region is luring multinational corporations with transparent and cutting-edge financial regulation. Abu Dhabi and Bahrain have rubber-stamped bitcoin company licenses in the past year, demonstrating their thoroughness and audacity in applying certification to allow the industry to thrive.
