Saudi Arabia tops MENA in crypto growth for second year

Saudi Arabia has been identified as the fastest-growing crypto economy in the MENA region for the second consecutive year. 

According to a recent Chainalysis report, the kingdom experienced a year-over-year growth rate of 154%, surpassing the United Arab Emirates. 

This growth is largely linked to the young population of Saudi Arabia, with approximately 63% of citizens under the age of 30. 

The report notes that younger individuals are generally more inclined to experiment with new financial technologies, contributing to innovation in the sector. 

Additionally, Saudi Arabia and Qatar's crypto activities mainly arise from decentralised finance platforms due to limited regulatory frameworks for centralised exchanges. 

While Saudi Arabia continues to engage in decentralised finance, Qatar has initiated its 2024 Digital Assets Regulations. 

Officials aim for these regulations to establish a framework for a functional financial services sector that can leverage technological opportunities. 

The report also indicates that institutional and professional investors primarily drive crypto activities in the MENA region. 

“The majority of crypto activity in MENA is driven by institutional and professional-level activity, with 93% of value transferred consisting of transactions of $10,000 or more,” the report states. 

Between July 2023 and June 2024, the MENA region recorded $338.7 billion in on-chain value, representing 7.5% of the global total. 

Turkey accounted for $136.8 billion, while Saudi Arabia followed with just under $50 billion.