A survey was recently conducted by KuCoin, which revealed that crypto penetration and adoption in Saudi Arabia had recorded a significant increase. According to the results of the survey, the country is now ranked as one of the largest crypto trading hubs in the world.
Saudi Arabia’s crypto adoption
There has been a tremendous increase in crypto adoption in North Africa (MENA) and the Middle East region. The survey that KuCoin conducted showed that 14% of the adult population in Saudi Arabia, which is between the age of 18 and 60 years, have engaged in crypto trading, or made investments in crypto assets in the last six months.
About 17% of the people who responded to the survey also disclosed that they wanted to learn more about the crypto space and were curious about how it works. Moreover, investors in Saudi Arabia also have an optimistic viewpoint about the growth of the crypto sector in the country. In the first quarter of 2022, 49% of people who have already invested in cryptocurrencies asserted that they wanted to expand their portfolios in the coming six months.
However, it should be noted that the crypto investors in Saudi Arabia became conservative in the second quarter, as the bear market prolonged. This prompted about 31% of the investors to claim that they would continue holding their existing positions in the crypto market and not expand, or increase.
In fact, the survey showed that some of the investors had also sold off their crypto holdings because of the extended bear market. Nonetheless, it is important to note that there is a significant number of new crypto investors in Saudi Arabia. The survey results indicate that 76% of people who have invested in these digital currencies have an experience of less than a year.
In addition, 49% of the survey correspondents disclosed that they had only joined the crypto space in the last six months. Apart from that, 50% of the crypto investors used fiat currencies to buy crypto assets and they also spot trade cryptocurrencies on a monthly basis.
Other than retail investors, the crypto market also drew the attention of institutional investors in Saudi Arabia. An oil company in the country, Saudi Aramco triggered a flurry of excitement in the market when it announced that it was making an investment of $5 million in an oil trading company called Vakt which is based on the blockchain.
Reports indicated that it would also begin engaging in bitcoin mining. However, it is important to bear in mind that no crypto regulations have been introduced in Saudi Arabia as yet. Nonetheless, the government does seem to have a positive stance towards it.
Back in 2019, the Saudi Arabian Monetary Authority (SAMA) and the United Arab Emirates Central Bank (UAECB) issued a joint statement about launching Aber, a cryptocurrency. This was meant for facilitating trade between Saudi Arabia and the UAE. The announcement said that the fiat currencies of the countries would be used or backing the cryptocurrency.