Crypto culture catching up with Saudis rapidly
Crypto fever is catching up in Saudi Arabia of late and the Kingdom is poised to become of the significant market for digital currencies in the region. With the country’s favourable regulatory climate, large consumer base and increasing interest in cryptocurrencies, its citizens are keen to explore the market in large numbers.
In its report entitled “Into the Cryptroverse” released on Wednesday, global cryptocurrency exchange KuCoin conducted a survey and as of May 2022, around 3 million Saudi Arabians, which account for 14% of the adult population aged between 18 and 60, have become crypto investors who either currently own or have traded cryptocurrencies over the past six months.
The survey also revealed that another 17% of adults are considered to be crypto-curious and are likely to invest in cryptocurrencies over the coming six months. The report’s findings highlighted sustainable interest among potential crypto investors in the Arab world’s major economic power house.
More Investments Likely
In the first quarter of 2022, 49% of crypto investors intended to increase investment in cryptocurrencies over the coming six months. The onset of the bearish market in the second quarter of 2022 saw a reversal of investor sentiment toward more conservative strategies related to the holding of cryptocurrencies.
In the second quarter of 2022, 31% of crypto owners in Saudi Arabia said that they would keep their crypto balance as it is rather than increase their investment. Investors with lower income tended to sell off a part of their portfolios during the same period.
The high proportion of new market entrants is unique to Saudi Arabia, as 76% of crypto investors have less than one year of experience in crypto investment, including 49% of those who first started trading cryptocurrencies in the past six months, suggesting strong demand for crypto education in the market.
Some 51% of crypto investors invest because they believe it is the future of finance, while 44% believe that cryptocurrencies can bring them higher returns in the long run compared to other types of financial investment.
Men Outnumber Women
On the demographic side, 63% of crypto investors are men and the gender ratio has remained stable over the past months. In terms of age distribution, young crypto investors below 30 account for at least a third of the total and have increased to 37% in the second quarter of 2022, the report said.
A slight difference is observed in the mind sets of men versus women, as 44% of male crypto investors say they do not want to miss the trend. On the other hand, women tend to hold a more practical mind set, focusing on realistic benefits. 48% of female crypto investors are motivated by its profitability in the long run, and 42% of females invest in crypto to gain passive income.
Around 42% of Saudi crypto investors say they plan to use the profits to improve their families’ living conditions.
Other goals include buying a new house, saving for retirement or emergency fund, and spending on other enjoyments such as traveling and shopping. In addition, around 15% of crypto investors hope to live on the income from a crypto investment to be spared from work.
Many are using the gains from crypto investment to grow their portfolio and reinvest, especially male crypto investors. Another 29% of crypto investors plan to start their businesses with gains, and 28% intend to reinvest the money into the financial market.