As I return from the Web Summit in Qatar, I ponder the perspectives of crypto development in the Middle East. How quickly the landscape has changed: ten years ago, not so many people would name MENA among the most technologically innovative regions.
Yet, the title of one of my panel discussions during the Summit sums it up perfectly — “Building unicorns outside the Valley.” Silicon Valley, a thin strip of land, is, indeed, no longer an undisputed leader in startup launching and broad technology adoption. Tech goes global, especially blockchain, and MENA has become one of its catalytic centers.
Web3 MENA in Numbers
In 2020-2022, Web3 in the Middle East went through a major transformation from a small industry to a headliner of a new economic revolution. The UAE, for instance, saw a fourfold increase in the number of registered crypto businesses and secured as much as 10 per cent of global crypto transactions.
The regional share of the total mining hash rate exceeds 8 per cent and is only expected to grow as miners migrate from countries with regulatory instability toward the low-cost and reliable surplus of energy. UAE empowers blockchain, crypto literacy is taught in schools — Web3 is simply omnipresent if you know where to look.
Other Gulf countries follow suit. While Saudi Arabia and UAE were battling over who had more favorable regulations and free economic zones, Oman entered the scene with a grand-scale hard infrastructure project.
With over $1.1 billion invested in crypto mining, Oman drives the Middle East's expected share in Bitcoin mining to over 15 per cent. This decisive move has attracted foreign crypto ventures, which are now carefully eyeing the country.
Like its neighbours, Oman is in pursuit of diversification from hydrocarbon income. So far, its “Vision 2040” strategy of creating knowledge-intensive jobs seems to be focused on blockchain — a great sign for the regional industry.
All these measures result in extreme optimism from investors. With Bitcoin’s spot ETF approval in the US and an incoming halving in April, its price is hitting new heights — and, as expected by the regional users, will continue to do so.
Our study at Bitget shows that over 80 per cent of investors in MENA expect the halving of Bitcoin to have a significant impact on its value, with 88 per cent thinking that the next Bull Run will propel BTC to a new all-time high price, which we recently saw came true.
This confidence and optimism are hard to earn, and this sentiment is notably stronger than that of participants from other regions. Only 4 per cent of investors in MENA plan to decrease their crypto holdings in 2024, while 82 per cent are eager to increase their position in crypto.
Towards the global role of MENA
All the necessary ingredients are there: rapidly developing infrastructure, favorable policymaking, and welcoming users’ sentiment.
Blockchain and crypto have found strong support in the Middle East and have been accepted widely. MENA’s global role in Web3, both as the home to blockchain businesses and provider of raw mining power, will increase, opening up more opportunities for crypto. At Bitget, we're determined to provide easier access to this emerging technology for everyone globally.
We plan to scale our Middle East team and hire professionals across the region to fill a range of back- and mid-office roles.
This is not just acknowledging the importance of MENA; it is about the core values of facilitating a more profound crypto adoption across the globe.
After attending the Web Summit in Qatar, I reflected on the future of crypto development in the Middle East, which appears to be very promising.
Gracy Chen
The author is Managing Director, Bitget, and a crypto enthusiast
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