The Growth of Blockchain Assets in the UAE

A London-based Nickel Digital Asset survey indicates (5 out of 10) institutional investors consider investing in a blockchain-based digital asset “cryptocurrencies” within the following year. Concurrently, 63 percent show an increase of acceptance in the usage of cryptocurrency than a year ago.

Anatoly Crachilov, CEO of Nickel Digital, stated, “Despite the recent correction in the crypto market, our survey confirms there is an ever-increasing appetite for this asset class among professional investors, willing to take [a] constructive longer-term view. We are glad to see increasing adoption of digital assets by many family offices based in [the] UAE, as well as across the Middle East.”

UAE investors are avoiding over-exposure to traditional asset classes by diversifying their investment portfolio into blockchain assets. Ahmed Jacob, the Dubai-based Managing Partner of Blockchain Investment Manager INVAO Group, described it as “Exchange-listed, non-correlated to other asset classes, and have outperformed every other asset class over the past five years.” He also added that “In the longer term, blockchain assets will play an increasingly important role in global financial markets.”

“In the longer term, blockchain assets will play an increasingly important role in global financial markets.” 

Having been listed on digital exchanges, this type of asset’s market value can be determined in real-time and is also highly complex compared with real estate or private equity assets. Furthermore, the non-correlation of this asset with the traditional one gives a vehicle for investors to diversify their portfolios. You can also read detailed article on Government Blockchain.

UAE is also the leading advocate of blockchain technology. In 2018, the country introduced Emirate’s Blockchain Strategy 2021 to capitalize on blockchain technology, aiming to transform at least 50% of government transactions onto decentralized technology. Meanwhile, in 2020, the Central Bank of the United Arab Emirates (CBUAE) and The Saudi Central Bank (SAMA) created Project Amber to explore cross-border settlement between two countries using distributed ledger technology.

In the country alone, digital payment transactions have more than doubled to USD 18.5 billion over the past two years. A proof that the UAE market has an increasing appetite for crypto and blockchain technology. Thus, a positive indicator that UAE is becoming a global blockchain and crypto hub.

Also visit: Blockchain Investing in Dubai

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