How the Gulf States Are Fighting for an Investors
TechnologyBit News Today2 min read
The Gulf States launch a several-month blockchain investment drive.
Starting in 2018, the Gulf Cooperation Council began a concerted effort to woo blockchain companies to set up shop in the region. ## It's official: the Gulf wants blockchain
The GCC announced a multi-national initiative to court blockchain startups and mature crypto companies. The United Arab Emirates, Bahrain and Saudi Arabia in particular are vying to be the region's hub for all things crypto.
"The Gulf is hot for blockchain," said one un-named crypto executive. "The UAE alone has invested over two hundred million dollars in the industry." ## Eyeing Bitcoin: GCC's crypto ambitions spell difficulty for other hubs
The GCC's blockchain investment drive is yet another development that will challenge the crypto dominance of the United States, Europe and China.
In their rush to establish a stake in the burgeoning industry, the GCC countries have made it easier for blockchain companies to operate and invest in the region. Business set-up times have been streamlined, tax exemptions and incentives have been introduced, and policy-makers have been rigorously engaging with the crypto community, including holding workshops and courses to disseminate blockchain knowhow.
These incentives and meet ups come on the heels of a raft of new laws around blockchain and cryptocurrency. Late last year, the UAE and Bahrain established regulations for digital asset exchanges, while Saudi Arabia's Sovereign Wealth Fund tied up with an exchange to launch a cryptocurrency exchange. ## Future concerns remain
Despite the rapid developments, the GCC crypto scene remains in its infancy stage. The region faces several challenges in the race to become a global Bitcoin hub.
The first and most pressing issue are the regulatory uncertainties. While countries in the GCC are receptive to cryptocurrency, none of them have established clear guidelines for investing in and trading Bitcoin.
Another key issue is the GCC's legitimacy in the crypto-community's eyes. The region's conservative culture and stance on crypto pose the biggest obstacle to it becoming a crypto hub.
Still, the GCC's crypto ambitions may be significantly shaped by other global tech hubs. As the United States, Europe and China continue to invest heavily in the blockchain industry, the GCC will have to work hard to establish itself as a global player in the space.
