The high degree of adoption of crypto in Saudi Arabia makes it an important market for digital currencies, signifying the potential for expansion in the Middle East and North region.
According to a survey conducted around 3 million Saudi Arabians have become crypto investors who, as of May 2022, either currently own cryptocurrencies or have traded in the past six months.
17% of respondents are labelled as crypto-curious and are likely to invest in cryptocurrencies in the next six months. As per the findings, there is a long-term interest among potential crypto investors in the Arab nation. In the first quarter of 2022, 49% of crypto investors intended to increase their investment in cryptocurrencies over the next six months.
Investor sentiment shifted toward more conservative cryptocurrency investment techniques as the bearish market began. Crypto owners in Saudi Arabia said they would keep their crypto balance as is rather than expand it. During the same period, investors with lower incomes sold off a portion of their holdings per the survey conducted.
Half of the crypto investors purchase digital currencies using fiat and engage in spot trading on a monthly basis, which is the only form of crypto trading that some Arab theologians consider halal. The Saudi Arabian Oil Company Saudi Aramco fuelled excitement among cryptocurrency followers last year after investing $5 million in blockchain based oil trading firm Vakt. While this initiative sought to digitize and automate post-trade processing, it was also reported that Saudi Aramco would begin Bitcoin mining operations.
While the Kingdom of Saudi Arabia has not yet released any official regulations surrounding cryptocurrencies, the government appears to have taken a supportive stance toward digital assets and blockchain technology.
