Saudi Arabia's Riyadh Becoming A Rising Force in Crypto and Gaming

Sentiment Status: Positive

The city's ambitious plans include establishing a Web3 Hub supported by partnerships with leading tech firms.

Riyadh, a city with a rich history and a promising future in the world of cryptocurrency and gaming.

Riyadh, Saudi Arabia’s bustling capital, is not typically associated with cryptocurrency innovation due to its ambiguous regulatory stance. While neither banned nor officially endorsed, cryptocurrency operates in a gray area, making access and use challenging for residents. Despite these hurdles, a surprising 14% of Saudis between 18 and 60 are crypto owners, this shows a growing interest despite regulatory uncertainties.

Founded centuries ago amidst desert oases, Riyadh has evolved into a modern metropolis and the kingdom’s economic hub. Today, its economic diversification efforts, spurred by Vision 2030, aim to reduce dependency on oil revenues. The city’s young population, hindered by extreme temperatures that limit outdoor activities, increasingly turns to digital pursuits like gaming and potentially blockchain-based technologies.

Ahmed Yusuf, a local finance expert, notes that while Saudi banks remain cautious towards cryptocurrencies, peer-to-peer trading has gained traction among tech-savvy youth. The absence of personal income and capital gains taxes adds to the allure of crypto investments despite regulatory uncertainties.

Under the leadership of Prince Faisal bin Bandar bin Sultan Al Saud, Riyadh is not just embracing gaming but also spearheading Web3 initiatives. The city's ambitious plans include establishing a Web3 Hub supported by partnerships with leading tech firms like Animoca Brands and local entities such as King Abdulaziz City for Science and Technology (KACST). This collaboration aims to foster blockchain-based gaming startups and research and aligns with Saudi Arabia's broader Vision 2030 goals, to diversify the economy and cultivate a thriving ecosystem for next-generation technologies.

Recent appointments within Saudi Arabia’s regulatory bodies, including the establishment of a Virtual Assets and CBDC Department at the Saudi Central Bank, suggest a cautious approach towards integrating cryptocurrencies into the national economy. While Saudi Arabia learns from regional neighbors like the UAE, known for its progressive regulatory frameworks, Riyadh’s potential as a major player in the crypto sector remains significant but still developing.