Saudi Arabia has been named the fastest-growing crypto economy in the Middle East and North Africa (MENA) region for the second consecutive year, according to a recent report by Chainalysis. According to the data, Saudi Arabia has grown 154% year-on-year to become the region’s new hub for crypto despite being overshadowed by the United Arab Emirates, mostly known as the crypto hub of the Middle East.
One major influence on this growth is the kingdom’s youth demographic, of which around 63% of its total population is below 30. The report goes further, noting that this demographic is more inclined to experiment with new forms of financial technology products, making this segment fundamental to the country’s growing crypto sphere.
The crypto market in the MENA region recorded a remarkable boost in its value between July 2023 and June 2024, amounting to $338.7 billion, which was 11.73% higher than that of the previous year. Saudi Arabia provided $47.1 billion for this, which is 153 percent more than the previous year, and the UAE provided $34 billion, 42% more than the previous year.
Both countries have seen changes in attitudes toward cryptocurrencies, and more attention has been paid to them as investment opportunities. For instance, survey results show that 93% of the overall crypto value in transactions in the MENA region is in the large value category, that is, above $10,000.
Youthful Population Drives Fintech Innovation in Saudi Arabia
As for the choice of assets, Saudi Arabia and the UAE prefer stablecoins; they account for 46.1% of the total value of cryptocurrencies received, and 51.3%. This is relatively higher than the global average of 44.7%, so there is a sign of keeping price stability among investors. Consequently, the proportion of Bitcoin in the daily trading volumes remained below the global averages in both countries, while the volumes of non-Bitcoin cryptocurrencies are also rising, as is investors’ demand for lower volatility investments.
DeFi is also rising with transaction volumes, with Saudi Arabia and the UAE regularly participating in decentralized exchange. Digital transactions in KSA amounted to 30.9% from decentralized applications, particularly on DeFi platforms—a larger percentage than the global share. This shift, however, results from innovation in the region with the availability of a young and tech-savvy population and a good rider legal structure that encourages Fin-tech innovation.
Saudi Arabia is the most advanced country in cryptocurrency usage in the MENA region. The kingdom’s young population and institutional adoption point toward a promising future for the digital economy in the region.
