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Digital innovations are booming in the Middle East because of global networks, foresight, and—above all—a new class of well-heeled investors. Recent advances have seen governments, major companies, and venture capital firms invest in the region’s digital ecosystem. In effect, the vast gulf territory, whose economy has long been recognized for its oil fortune as its principal revenue source, has transformed into a global hotspot for cryptocurrency and technology startups. This website has more information about the cutting-edge crypto industry in the Middle East, such as crypto gaming.
RAK DAO and Tencent Cloud Collaboration
Tencent Cloud is one of the Gulf’s top tech investors over the past decade. Tencent’s esteemed cloud services division signed an agreement with the Ras Al Khaimah Digital Asset Oasis (RAK DAO) in early March 2024. In a joint effort to achieve greater expansion, the Chinese organization inked a memorandum of understanding with the UAE’s free zone for digital assets.
At its core, the new agreement entails a commitment to accelerating the growth of businesses based in the emirate. In this aspect, it is consistent with Ras Al Khaima’s original purpose of establishing a crypto-focused free economic zone.The MoU aims to allow the establishment of a Tencent Cloud training facility within the free zone to support related skills.
The facility, among other things mentioned in the agreement, is fantastic news for the emirate and Gulf-based crypto companies. The Ruler of Ras Al Khaimah, Sheikh Saud bin Saqr Al Qasimi, commented on the MoU, calling it a key milestone in the emirate’s development as a technology hub.
Startups in the Rak DAO mostly focus on Web3 technologies such NFTs, blockchain, and the metaverse. With Tencent Cloud, these startups will be able to seize more and greater possibilities in the global digital economy.
Investing in Saudi Startups
Saudi Arabian crypto and digital businesses, like their counterparts in the UAE, are seeing an increase in funding. In mid-2023, Saudi Venture Capital (SVC) invested $7.5 million to a fund targeted to assisting early and late-stage enterprises The fund is part of Saudi Venture Capital’s overall strategy to support the country’s startups and SMEs. Endeavor Catalyst, the investment department of Endeavor Global, will oversee it.
When signing the subscription agreement, SVC CEO Nabeel Koshak stated, “The investment in Endeavor Catalyst IV Fund is a result of the recent support from SME Bank to increase the investment capital of SVC, leading to a total investment capital of $1.6 billion. The investment is also part of SVC’s Investment in Funds Program.
The significant investment demonstrates investors’ confidence in Saudi Arabia’s tech startups and the broader digital ecosystem. Saudi Arabia is relatively new to this field. However, in recent years, it has had a profound impact on the global environment, garnering significant investment.
Government Commitment and Fundraising for The Digital Sphere
The investments streaming into Gulf countries are largely due to the region’s governments taking the initiative to promote various components of their digital economy. Abu Dhabi’s recent decision to invest in cryptocurrency shows the type of commitment that encourages additional investment in Gulf tech enterprises.
In 2023, Abu Dhabi plans to spend $2 billion in Web3 businesses, metaverse applications, and blockchain technology. The investment was made to launch the new Hub71+ Digital Assets. It is designed to help startups operating in the Web3 space. The significant funding will provide businesses with access to a wide range of programs and activities, as well as valuable networks.
The Abu Dhabi government’s active monetary involvement in the technology sector demonstrates its faith, which has a significant impact on investor decisions. In 2023, Fuze, one of the Hub 71 ecosystem’s crypto startups, easily raised $14 million in seed capital.
The startup provides digital asset infrastructure. It has a strong reputation in the Middle East and North Africa (MENA) region. The startup’s vision was crucial in raising money. It was a crucial factor for the startup’s ability to raise funds from prestigious investors, including Liberty City Ventures, based in the United States.
We should expect more firms with solid international collaborations to develop based on the current industry trends.
Final Word
In a few short years, Gulf countries have transitioned from oil dependence to technological innovation hubs. With the shift came the capacity to attract real investment, which has aided the rise of tech and cryptocurrency firms. This trend indicates that the Gulf area is rapidly gaining prominence and may soon become one of the largest gainers in the digital economy. Those looking to invest in high-potential markets may consider concentrating their efforts on the Gulf’s digital sector.
