By Michael Jerlis, CEO of EMCD
As Saudi Arabia continues to advance its Vision 2030 agenda, the nation’s economy is diversifying, and the crypto market is becoming an increasingly significant player. With a strategic focus on reducing dependence on oil, the kingdom is embracing tech innovations and creating a friendly environment for digital assets. Let’s dive into the current crypto investment landscape in Saudi Arabia.
The Crypto Landscape in Saudi Arabia
Saudi Arabia is the place to invest in crypto the smart way now – it’s quickly emerging as a key crypto hub in the Middle East. With substantial government support and fast-paced regulatory development, the country is laying the groundwork for a robust digital economy.
Saudi Arabia’s Vision 2030 initiative is a great example of how institutional web 3 and tech development is in the region. The kingdom’s regulatory authorities are engaging with global leaders to establish high-level regulations for digital currencies, aiming to create a secure and transparent investment environment. Creating a favorable environment is crucial in attracting both local and international investors to the burgeoning crypto market.
Moreover, the Saudi government already launched several initiatives to support tech growth, including reported talks with major venture capital firms like Andreessen Horowitz (A16z), a leading VC startup backer – a big nod to further integration of advanced tech into the national economy. And Hub71 launching a $2 billion initiative to support Web3 startups in the region last year speaks louder than any negotiations.
And last but definitely not least, the locals already showed their support of the government’s initiatives with their money. With over 60% of its population under the age of 30, Saudi Arabia has a young, tech-savvy demographic eager to adopt new technologies. This demographic is driving the adoption of digital assets and contributing to the vibrant crypto community in the country.
The country’s growing appetite for digital assets is clearly evidenced by the high transaction volumes, which reached $6 billion in the first two months of 2024 alone. And they’re doing great – according to Chainalysis, Saudi crypto investors amassed more than $350 million in gains in 2023, surpassing the UAE’s $204 million.
Back to Basics: Low-Risk Investment in a Booming Market
With an exciting environment like the Saudi crypto market, it’s easy to get tempted by high-risk, high-yield opportunities – but this is only a good path if you have enough disposable funds you’re willing to lose over its course. That’s why I believe in low-risk investments as a universal solution for any investor, especially while others chase quick returns.
No matter how the market turns, crypto came to Saudi Arabia to stay, and now is the time to put some of those assets towards more stable and potentially long-term investments. This may sound less fun than putting everything you have into every exciting new project in the region, but generating passive income via low-risk investments like good old savings accounts is the safest bet in any market, including crypto.
Crypto savings accounts work more or less the same way they do in ordinary banks. Users basically loan a platform their money for the platform to use for their business needs and get rewards – interest – in return. The longer you commit to letting the platform use your funds, the higher your rewards, the more flexible you want your account to be – the lower your rewards, since the platform might have to return your investment at any moment. However, there’s some additional perks in crypto savings specifically.
Here’s a few pro tips on the benefits of crypto savings accounts:
- Higher returns: Crypto savings accounts can offer higher interest rates compared to traditional banks
- Additional profit opportunities: Open a deposit in coins like Bitcoin, Ethereum, etc., and get interest in addition to your coins’ market value growth
- Flexibility: Pick plans that suit your needs, looking at term flexibility and asset diversification
- Easy asset management: You can typically easily manage all your savings accounts in a convenient app
- Accessibility: You’re less likely to run into high investment thresholds to get a good interest rate than traditional banks
- Asset security: A reputable platform will always guarantee you can retrieve all your coins at any time
At EMCD, we really believe in creating inclusive passive income opportunities for our users, so we built Coinhold – a savings platform built into our ecosystem. And, of course, we made sure we offer all the benefits listed above, including up to a whopping 14% on stablecoin accounts and up to 8% on other popular coins like Bitcoin – an unmatched guarantee on the market right now.
Conclusion
Saudi Arabia’s proactive stance on crypto regulation, together with strategic government initiatives, is transforming the kingdom into a promising hub for digital asset investments. By focusing on investment opportunities like crypto savings accounts, you can navigate the evolving crypto landscape with substantial returns and low risks.
At EMCD, we are committed to helping investors explore and expand the potential of cryptocurrency investments in this dynamic market. Together, we can build a secure and prosperous future in the world of digital assets where you use crypto to thrive, not survive.
