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By R. Suryamurthy As Bihar heads to the polls on November 6 and 11, the contest is being pitched as a battle for identity, justice, and governance. But no matter which side wins—the NDA led by the BJP–JD(U) combine, the opposition Mahagathbandhan under the RJD-Congress, or the insurgent Jan Suraaj of Prashant Kishor—the victor will […]

The article The Battle For The Ballot Cannot Hide Bihar’s Bitter Economic Truth appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

China’s securities regulator has rolled out a sweeping reform package designed to simplify access for overseas institutional investors and bolster long-term capital flows into its stock and bond markets. The China Securities Regulatory Commission announced that it will streamline the existing regime for the so-called qualified foreign investor framework, including loosening qualification thresholds, expanding investment scope and reducing administrative friction.

At a policy forum in Beijing, CSRC Chairman Wu Qing stated that the reforms aim to make China’s capital markets “more inclusive, adaptable and globally competitive”. He said the regulator plans to introduce a shelf-based refinancing mechanism and simplify filing procedures for overseas listings, aligning with the broader effort to diversify asset allocations amid global uncertainty.

The reforms are anchored on three pillars: easing eligibility for overseas institutional investors, enhancing operational flexibility for capital flows and broadening the range of permissible investments. Legal-and-regulatory briefings indicate that registration channels will be modernised; for example, in the revised framework for the earlier QFII/RQFII regime, a single renminbi account may now serve both securities and derivatives trading and repatriation of returns is simplified.

The timing of the reforms signals China’s intent to rebuild investor confidence amid a decelerating economy and mounting international competition for capital. Analysts note that the removal of quotas in earlier iterations of the programme set the stage for this deeper opening. Foreign asset-managers are expected to interpret this as a signal that Beijing is actively courting long-term commitments, rather than purely speculative flows.

From the perspective of global investors, these changes may unlock previously inaccessible segments of China’s markets. The A-share universe on the Shanghai Stock Exchange and Shenzhen Stock Exchange has grown substantially, and the relaxations open the door to a wider number of institutions, countries and asset classes than in the past. Strategically, this aligns with China’s dual-track agenda of promoting internal consumption while also continuing to integrate with global finance.

Nevertheless, the loosening of rules carries risks and constraints. Although administrative barriers are being reduced, foreign institutions must still satisfy substantive criteria—including governance standards, compliance records and suitability for RMB-denominated investment. The commercial and geopolitical environment remains complex, and international concerns around transparency, data security and regulatory predictability persist. Moreover, while quotas may be reduced or removed, factors such as currency volatility, capital controls and domestic market sentiment will continue to influence investor decisions.

Market participants appear cautiously optimistic. A number of global asset-managers have publicly stated that they will monitor how implementation unfolds and whether domestic on-shore brokers and custodians adapt swiftly to the new rules. Some expect the real test to come when overseas institutions begin deploying larger mandates into the Chinese on-shore market and engaging in longer-term allocations rather than short-term trading.

From the government’s perspective, the drive to attract long-term capital is part of a broader reform push. China is not only seeking external capital but also attempting to deepen its domestic investor base, scale up passive and index-based investment, and reduce reliance on short-term speculative flows. The regulatory strategy suggests that policymakers believe structural openness will enhance market resilience and support sustainable growth.

A leading enterprise-artificial-intelligence firm, Fractal Analytics, is preparing to launch a public share sale of around ₹4,900 crore and is targeting a market valuation near US $3 billion. The move comes as the company positions itself at the forefront of the AI-analytics sector and seeks to capitalise on growing investor demand for technology listings. The proposed offering would comprise fresh shares worth about ₹1,280 crore and an offer-for-sale by existing investors totalling approximately ₹3,620 crore as part of its entry into public markets.

Fractal Analytics was founded in 2000 by five graduates of the Indian Institute of Management Ahmedabad. Today only two of the original founders remain with the company: Group Chief Executive Officer Srikanth Velamakanni and Chief Executive Officer Pranay Agrawal, each holding roughly 10 per cent of the company’s equity and not looking to sell in the upcoming offering. The firm achieved unicorn status in 2022 and generates more than 90 per cent of its revenues outside its home market, meaning its exposure to global enterprise clients is strong.

Advising banks on the share sale include major names such as Axis Bank, Goldman Sachs, Kotak Mahindra Capital and Morgan Stanley, signalling the IPO is being positioned among marquee listings. Industry data show that new-listing proceeds in the Indian market have already approached US $16 billion in 2025, with expectations that this year could surpass the US $21 billion record set in the prior year.

In financial terms, Fractal has posted a turnaround in performance. According to regulatory disclosures, its revenue rose from about ₹2,043.7 crore in FY23 to approximately ₹2,816.2 crore in FY25, reflecting a compound annual growth rate of around 17.4 per cent. Meanwhile, profitability returned in FY25 with a net profit of ₹220.6 crore after a loss of ₹54.7 crore in the previous year. The firm’s adjusted EBITDA margin improved from 6.8 per cent in FY23 to 17.4 per cent in FY25, and operating cash-flow rose substantially to ₹397 crore in FY25 from the previous year.

Fractal’s service model is built around large global enterprises, which in FY25 included 113 “must-win clients”—companies with annual revenues in excess of US $10 billion or customer bases over 30 million. About 65 per cent of the firm’s FY25 revenues were derived from the United States, underlining its dependence on Western markets. To maintain growth momentum the company intends to channel IPO proceeds into further research and development, strategic acquisitions, expansion of its R&D centres in locations such as Bengaluru, Gurugram, Pune and Noida, and boosting its sales-and-marketing capabilities.

Despite the strong metrics the IPO plan carries risks. The business remains heavily concentrated: its top ten clients contributed 53.8 per cent of revenue in the Fractal. ai segment in FY25. Losing a major client could have a disproportionate impact on its results. The firm is also operating in a rapidly evolving global AI landscape dominated by large diversified IT-service providers as well as specialist startups. Its heavy reliance on the U. S. market exposes it to foreign-exchange volatility and regulatory shifts abroad. Analysts comment that an IPO valuation near US $3 billion may leave little margin for error if market sentiment weakens or growth decelerates.

A new financial entity, Evernorth Holdings Inc., backed by Ripple Labs and a cadre of major investors, is embarking on a substantial accumulation of the cryptocurrency XRP, aiming to raise more than US$1 billion via a merger with Armada Acquisition Corp II and list on the Nasdaq Stock Market under the ticker “XRPN”. According to on-chain data, the firm has acquired around 388.7 million XRP at an average price of US$2.44 per token, representing roughly 95 per cent of its initial US$1 billion target.

Evernorth’s structure diverges from typical passive crypto funds by seeking to deliver regulated, liquid equity exposure to XRP while simultaneously building a dedicated treasury operation. The company plans to deploy acquired XRP into lending programmes, liquidity-provision initiatives and decentralised-finance protocols, rather than simply holding the tokens. This approach is led by CEO Asheesh Birla, and supported by strategic advisors including Ripple’s CTO. Major backers include SBI Holdings, Pantera Capital, Kraken and Ripple co-founder Chris Larsen.

Market observers draw a parallel between Evernorth’s accumulation strategy and the approach taken by MicroStrategy Incorporated with its Bitcoin holdings, suggesting a potential supply constraint in XRP that could influence pricing dynamics. Analysts estimate Evernorth’s holding could absorb up to 2 per cent of XRP’s liquid supply within a year, tightening available tokens for retail circulation. The company’s public-market vehicle may further attract institutional capital that would be channelled into open-market purchases of XRP by the treasury arm.

The strategic significance of Evernorth extends beyond token accumulation. By enabling a publicly traded entity dedicated to XRP exposure, it lowers traditional institutional barriers—such as asset custody, regulatory transparency and mandate-compliance—that have impeded large-scale crypto adoption. Evernorth’s design allows corporate treasuries, pension funds and asset managers to gain direct exposure to XRP through an equity wrapper, bypassing conventional hurdles of spot-token holdings. Concurrently, its active deployment of XRP into yield-generating operations seeks to drive liquidity, on-chain utility and ecosystem momentum, aligning its interests with Ripple’s broader infrastructure objectives in cross-border settlement and network expansion.

Citigroup Inc. and Coinbase Global Inc. have announced a collaboration to expand digital-asset payment services for the bank’s corporate clients, signalling a deeper institutional embrace of blockchain-based money transfers. The partnership will first focus on facilitating conversions between fiat currencies and digital assets, including stablecoins, and improving access to on- and off-ramps for firms that move large volumes of funds.

The deal between Citi and Coinbase addresses a prominent pain point in global payments: the cost, time and complexity of moving funds across borders or between fiat and crypto systems. Under the agreement, the participants will work on streamlining pay-ins and pay-outs for institutional clients, simplifying the flow between traditional bank accounts and Coinbase’s digital-asset platform.

“With more than 300 payment-clearing networks across 94 markets globally, we see collaborating with Coinbase as a natural extension of our ‘network of networks’ approach,” said Debopama Sen, Citi’s head of payments and services. Brian Foster, global head of crypto-as-a-service at Coinbase, added that the collaboration “reflects our commitment to building the infrastructure needed for the next generation of financial services.”

Analysts view the move as part of a broader trend in which leading financial institutions are shifting from cautious observation of digital assets to actively integrating crypto and stable-coin infrastructure. Citi had already signalled interest earlier this year in issuing its own stablecoin and providing custody services for crypto assets backing investment funds.

Stablecoins—cryptocurrencies pegged to fiat currencies—currently serve mostly trading and settlement within crypto markets. The new collaboration suggests an ambition to extend their use into cross-border payments, treasury operations and institutional settlements. In this case, the plan explicitly includes exploring mechanisms to directly link fiat balances to on-chain stable-coin payouts for corporate clients.

While the partnership presents opportunity, it also raises regulatory and operational challenges. Financial regulators have increased scrutiny of stable-coin issuance, backing reserves and the potential risks to payments stability. Traditional banks entering the crypto space must manage compliance, money-laundering controls and cyber security in new systems. For instance, a consortium of ten major banks—including Citi—are together exploring stable-coin issuance tied to G7 currencies, with regulatory oversight a key consideration.

From an operational standpoint, integrating digital-asset infrastructure into a global bank’s existing payments network is complex. Citi’s model involves multiple clearing networks and real-time settlement expectations; adding 24/7 on-chain rails demands robust coordination, governance and risk management frameworks. The collaboration acknowledges this by focusing first on institutional clients and later expanding to broader corporate use.

For Coinbase, this partnership enhances its positioning as a trusted infrastructure provider for institutions. The firm has made several moves to support institutional adoption, including acquiring technology to expand capital markets presence and forming strategies around tokenised credit products. By joining forces with a major bank like Citi, Coinbase gains access to a wide international payments network and the bridge between traditional finance and digital assets.

Market reaction has been positive; following the announcement, Coinbase’s shares rose, reflecting investor appetite for digital-asset infrastructure deals with legacy banks. For corporate clients of Citi, the collaboration means access to a potentially faster, lower-cost payment model that combines fiat and crypto rails and the possibility of 24/7 global transfers.

In examining trends, the deal fits into a pattern where banks are no longer sidelined observers of cryptocurrency innovation but active participants. As one executive at Citi observed, the financial-services landscape is changing fast, and institutional demand for real-time, border-less payments is driving innovation. That said, the extent and pace of adoption will depend on regulatory clarity, technological readiness and client acceptance.

By Nantoo Banerjee If global oil giant BP plc’s ‘Energy Outlook 2025’ proves to be true, India will be a global leader in energy consumption, outpacing all other countries by 2050. The country will account for 12 percent of the global demand, up from seven percent from 2023, according to BP’s chief economist Spencer Dale. […]

The article India Is At The Heart Of Driving The Global Energy Process appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Saudi Arabia’s flagship New Murabba project is poised to become a major investment hub, with plans to attract capital in technology, real estate, and construction sectors. Michael Dyke, the CEO of New Murabba, announced the initiative at the Fortune Global Forum in Riyadh, marking a significant step forward in the kingdom’s diversification strategy.

Launched in 2023 by Crown Prince Mohammed bin Salman, the New Murabba project is part of Saudi Arabia’s broader Vision 2030, aimed at reducing the nation’s reliance on oil revenues by fostering new industries and boosting economic growth. The initiative aims to transform the heart of Riyadh into a sprawling mixed-use urban area, poised to redefine the cityscape with a mix of residential, commercial, and entertainment offerings.

The project will cover an area of 19 square kilometres, positioning it as one of the largest urban developments globally. Its scale is unprecedented, making it one of the most ambitious projects in Saudi Arabia’s recent history. The new district is expected to accommodate over 100,000 residents and create hundreds of thousands of jobs in various sectors, significantly contributing to Riyadh’s economic development.

One of the key areas that Dyke highlighted during his speech at the forum is the focus on technology. The New Murabba project aims to integrate cutting-edge technological innovations into its design and infrastructure. The development will feature smart city technologies, including AI-driven systems for traffic management, energy conservation, and public services. Moreover, the project is expected to foster a thriving ecosystem for tech startups and established companies, making it an attractive destination for both domestic and international tech investors.

The project’s real estate and construction sectors will also play a pivotal role. With residential spaces, luxury hotels, office towers, and retail outlets planned, the project is designed to meet the needs of a diverse range of residents, businesses, and tourists. This focus on mixed-use developments aims to create a self-sustaining urban area, with a heavy emphasis on sustainability and green architecture. Additionally, the construction phase alone is expected to generate significant economic activity, providing a substantial number of jobs in the kingdom’s building sector.

New Murabba’s strategic location within Riyadh further boosts its potential as a central business and cultural district. It will be positioned in close proximity to key landmarks, including the King Abdulaziz Historical Centre and the King Saud University, enhancing its accessibility and making it a focal point for both locals and visitors. The project’s proximity to the King Khalid International Airport is also expected to make it a prime location for international businesses, especially in the tech and tourism industries.

The Saudi government’s backing of the New Murabba initiative signals a strong commitment to its diversification efforts. As part of the Vision 2030 programme, the kingdom is looking to foster a more sustainable and diversified economy, moving away from its dependence on oil exports. This development aligns with broader trends in urbanisation across the Middle East, where large-scale projects are shaping the future of cities and driving economic change.

The investment opportunities presented by New Murabba are expected to attract a wide range of investors from various sectors. For real estate developers, the sheer scale of the project represents an unparalleled opportunity. For technology firms, the integration of smart city technologies offers a unique environment in which to develop and test innovative solutions. Meanwhile, the construction sector stands to benefit greatly from the demand for infrastructure and buildings, with the long-term potential for growth in both residential and commercial spaces.

With the Saudi government’s push for private sector involvement, the New Murabba project is expected to be a catalyst for further investments in the kingdom. The involvement of international investors and companies will be crucial to its success, with the project acting as a gateway to other opportunities within Saudi Arabia’s growing economy.

The cancellation of the highly anticipated initial public offering by UAE-based classifieds giant Dubizzle has raised serious concerns about the current state of the Middle East’s equity capital markets. Once viewed as a promising player in the region’s IPO landscape, Dubizzle’s decision to abandon its listing highlights the significant challenges the Middle East faces in generating investor confidence after a year of lacklustre aftermarket performance.

Dubizzle’s IPO was set to value the company at approximately US$2 billion, a deal that was initially expected to attract substantial interest from both regional and international investors. However, a series of setbacks, including a sharp downturn in market conditions, led to its eventual abandonment. “It’s a complete disaster for the region,” remarked a UAE-based investor, underscoring the gravity of the situation. This sentiment is echoed by many analysts who point to the stark contrast between the current climate and the boom years that saw the Middle East emerge as a dominant force in EMEA ECM.

The UAE’s IPO market has long been a significant player in the regional capital markets. Over the last few years, the area had enjoyed strong performances from listings such as the floatation of ADNOC Drilling and Dubai’s top retail operator, EMIRATES NBD. These successes painted a rosy picture of the region as a flourishing hub for high-profile public offerings. However, 2024’s market performance has been far from reflective of that growth. The Dubizzle setback is just the latest in a series of underwhelming IPO results, a trend that analysts attribute to a combination of factors, including investor caution, regional political instability, and global market headwinds.

Investor sentiment had already been fragile due to the underperformance of several high-profile companies post-IPO. Notably, Talabat, the online delivery service, saw its stock plunge nearly 40% from its initial issue price, while construction giant Alec Holdings also experienced significant losses. Both companies, initially thought to be solid IPO candidates, have fallen victim to what some analysts are calling an “overheated market” in 2023, where optimism led to inflated valuations. These negative outcomes have made investors more reluctant to engage in new listings, further dampening the appeal of subsequent IPOs, including Dubizzle.

Market observers point out that the combination of volatile regional economic conditions, which include oil price fluctuations and rising inflation, has contributed to a cautious outlook. The global economic environment, particularly in Europe and the United States, also has ripple effects in emerging markets like the UAE, with rising interest rates and a slowing global economy compounding investor fears of weak returns. These external pressures have combined with a tightening regulatory environment in the region, adding to the difficulties of orchestrating a successful IPO.

As the region grapples with these challenges, many are questioning whether the Middle East’s ECM sector can regain its former momentum. The last few years witnessed an influx of private equity and venture capital investments into the region’s tech startups, which fueled expectations that these companies would eventually go public and bolster the stock market. However, the persistent volatility and failure of IPOs to deliver on their promise have now raised doubts over whether such investments will yield the expected returns.

The REX-Osprey XRP ETF, the first U. S. exchange-traded fund offering direct exposure to XRP, has surpassed $100 million in assets under management within a month of its launch. Launched on September 18, the fund provides investors with a unique opportunity to gain direct exposure to XRP, the fourth-largest cryptocurrency by market capitalization, without the complexities of purchasing the digital asset itself.

According to REX Osprey, the firm behind the launch of the ETF, the rapid growth in AUM highlights the increasing interest in digital assets and their integration into mainstream investment products. The ETF, which trades on the Cboe BZX Exchange, allows investors to gain exposure to XRP through a traditional brokerage account, making it more accessible than purchasing the cryptocurrency directly on exchanges.

XRP has long been one of the most controversial and volatile cryptocurrencies, primarily due to its ongoing legal battle with the U. S. Securities and Exchange Commission. The SEC initially filed a lawsuit against Ripple Labs, the company behind XRP, alleging that the cryptocurrency is an unregistered security. However, recent developments in the case, including partial victories for Ripple, have given a boost to investor sentiment, contributing to XRP’s price increase and the subsequent success of the ETF.

Since its launch, the XRP ETF has attracted both institutional and retail investors seeking exposure to the cryptocurrency market in a more regulated, liquid form. The growth in AUM also underscores the growing demand for innovative financial products that allow mainstream investors to participate in the digital asset space without directly owning the underlying cryptocurrencies.

The popularity of cryptocurrency ETFs has been rising globally, and the launch of XRPR marks a significant milestone in the U. S. market, which has been cautious in approving crypto-based exchange-traded products. The approval of the XRP ETF comes at a time when other digital asset ETFs, such as those based on Bitcoin and Ethereum, have seen significant traction. The success of these products has raised expectations for further expansion of the cryptocurrency ETF market, especially as regulatory clarity surrounding digital assets continues to improve.

The launch of the REX-Osprey XRP ETF also reflects broader trends in the financial markets, with traditional financial institutions increasingly integrating cryptocurrencies into their offerings. Institutional investors, who have historically been wary of the volatility and regulatory uncertainty surrounding digital assets, are now more open to exploring the potential of blockchain technology and digital currencies as part of a diversified investment portfolio.

XRP, which has faced significant volatility over the years, has experienced a surge in value following key legal victories in its ongoing battle with the SEC. Ripple’s partial legal wins have boosted investor confidence, and many view the outcome of the case as a critical factor in the future of XRP’s market position. The cryptocurrency’s price has seen a sharp upward movement in response to the more positive outlook surrounding the lawsuit.

The success of the XRP ETF reflects growing confidence in XRP as an investment vehicle, despite the regulatory uncertainties that continue to surround it. While there are still ongoing legal challenges, the launch of this ETF signals a shift in how the cryptocurrency market is viewed by investors and regulators alike. The ability to trade XRP through an exchange-traded fund allows for more streamlined access to the asset, eliminating some of the complexities involved in handling digital currencies directly.

India is positioning itself as a global food supplier using Dubai as the logistical gateway, according to statements made by Chief Minister N. Chandrababu Naidu of Andhra Pradesh during his visit to the UAE. He declared that India’s strengths in agriculture, horticulture, aquaculture and logistics will enable the country to serve “the global community” through Dubai’s market access.

Naidu spoke of the UAE city’s strategic connectivity and global reach as ideal for scaling Indian-food exports. He noted that the Andhra Pradesh government is aiming to reduce logistics costs by integrating inland waterways, railways, road and seaports, and by spending around 14 per cent of the state’s GDP on logistics infrastructure as part of the drive to increase efficiency. His role as chief minister of Andhra Pradesh places him at the centre of an ambitious push to offer the state as a manufacturing and supply-chain hub with Indian agriculture at its core.

The announcement comes amid a broader investment road-show in which Naidu met with senior policymakers and business leaders in the UAE to discuss partnerships across multiple sectors, including food processing, green energy, AI and infrastructure. During a dialogue in Dubai the chief minister stated that India will supply food to the global community through Dubai as a hub, adding that he met ministers, family-business leaders and airlines executives during the visit. He praised the Indian diaspora for their contributions and flagged the state’s goal of making the new capital Amaravati a “green and blue city” built around water, greenery and advanced infrastructure.

Andhra Pradesh’s food-processing ambitions are a central plank of the strategy. The state government has invited investment from UAE food-conglomerates to scale cocoa cultivation, chocolate manufacturing, aquaculture and related logistics. The Chinese food-industry trend of “value-added exports” is echoed by India’s attempt to move beyond raw agricultural exports towards packaged, processed and high-logistics-integrated supply chains.

From a trade perspective, positioning Dubai as a re-export hub can offer Indian producers quicker access to Middle East, African and European markets. Dubai’s status as a global logistics and trading hub gives India the opportunity to piggy-back on existing infrastructure and reach. It also offers investors assurances of regulatory, financial and physical connectivity.

However, a number of challenges stand in the way. India already faces structural issues in agriculture: fragmented landholdings, variable productivity, post-harvest losses, and high domestic logistics costs. While Naidu cites a logistics cost of about 14 per cent of GDP for Andhra Pradesh, the national average remains higher and such a figure implies major optimisation ahead. The use of Dubai as a hub also raises questions of tariff regimes, transit duties, warehousing handling cost and competition from other international producers using the Gulf as re-export platforms.

Critics also point to the risk of over-promising on export capacity. India’s agriculture export ratio remains modest relative to the size of its production, and moving up the value chain into globally competitive processed foods will require investment in cold-chain infrastructure, quality standards and market-specific certifications. The reliance on a single state’s announcement may also raise concerns about federal coordination and falling short of expectations if broader national agricultural reforms lag.

By Nitya Chakraborty The U.S. President Donald Trump is finally meeting the Chinese President Xi Jinping in Seoul by this month end, possibly on October 30, on the sidelines of the Asia-Pacific Economic Cooperation Summit in the South Korean capital scheduled for October 31 and November 1. Both the leaders are attending APEC summit, but […]

The article Will Trump-Xi Summit In Seoul Lead To A Serious Trade Deal? appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Gulf states are emerging as influential players in digital assets, with governments across the region intensifying efforts to regulate cryptocurrencies, tokenisation and Web3 innovations. A growing number of jurisdictions are introducing licensing frameworks for virtual asset service providers, stablecoin regimes and asset-tokenisation structures, signalling a shift in strategy from reactive oversight to proactive design.

The Central Bank of the United Arab Emirates has introduced a Payment Token Services Regulation that obliges issuers, distributors and custodians of payment tokens to maintain full reserve backing, undergo mandatory licensing and meet robust anti-money-laundering and cybersecurity standards, thereby positioning the UAE as a regulatory pioneer in the region. Across the region, countries such as Bahrain and Saudi Arabia have developed layered digital-asset frameworks, with Bahrain’s central bank among the earliest movers and Saudi launching fintech sandboxes and pilot token-asset schemes under its Vision 2030 plan.

Market data underline these developments. Analysis shows that between July 2023 and June 2024 the Middle East and North Africa region handled some US$338.7 billion in on-chain crypto value, accounting for approximately 7.5 per cent of global transaction volume. Institutional flows dominate: about 93 per cent of value transferred in the region came in amounts of US$10,000 or more.

Several regional platforms have obtained new licences under this regulatory push. The region’s first licensed crypto-asset service provider, Rain Financial Inc., has expanded its services under licence from both Bahrain’s regulator and Abu Dhabi’s ADGM-FSRA. In Bahrain, over 50 firms including nearly half focused on digital-assets are in discussions to establish operations under the Central Bank’s regime.

The tokenisation of real-world assets is gaining traction, with banks and global institutions exploring issuance of token-backed bonds, real estate and commodity-linked tokens. According to consultancy research, tokenisation could add as much as US$230 billion annually to MENA-region GDP. Major international exchanges and asset-managers are establishing footholds: for instance, the global exchange Binance uses the UAE as its regional base and has obtained a licence under Dubai’s Virtual Assets Regulatory Authority.

Despite this momentum, the region faces challenges. Implementation remains uneven: regulatory capacity across jurisdictions varies, local consumer-protection rules are still emerging and cybersecurity vulnerabilities in wallet providers and exchanges pose material risk. Energy-use and environmental impacts of crypto-mining have also drawn regulatory scrutiny: in one Gulf city, electricity consumption fell by over fifty per cent after enforcement of mining curbs.

Taxation and corporate-governance issues are also under development. In Saudi Arabia individuals currently pay no capital-gains tax on crypto, though businesses may face up to 15 per cent tax with corporate income taxed at 20 per cent plus a 2.5 per cent zakat levy. Given the youth-skewed demographics of Gulf markets and high smartphone penetration, regulators see digital-assets as both a diversification lever and a conduit to broader fintech innovation.

For global crypto and Web3 players the Gulf region offers a combination of clear regulation, large capital pools and government-driven ambition. However firms must navigate rigorous licensing conditions, reserve-backing rules, AML frameworks and evolving governance standards. The regulatory focus on stability and consumer protection underscores that the region expects digital-asset innovation to be embedded in mainstream finance rather than existing outside it.