While the world is still busy in deciding the legalities of cryptocurrencies, especially the token economy, Middle Eastern investors are enthusiastic about the emerging technology. They see tokenization as a new method of building sustainable wealth. This year, the country’s overall crypto investments increased manifold, and it even surpassed both the US and the UK to become the biggest contributor to global crypto tokens sales, per CoinSchedule data.
Local Authorities Make Positive Efforts
According to Fundament co-founder Florian Glatz, local authorities are making efforts to create a blockchain hub in the UAE. This year, the country has contributed over 25% of the total funds generated at $210.5 million. The Cayman Islands and Singapore attained the second and third spots with $103.8 million and $89.7 million respectively. The domination of US in token sales is a faint memory of the past as the US slipped to the sixth position with only $37.2 million.
Glatz also commented on the popularity of Security Token Offerings (STOs), especially among institutional investors. These large investors prefer to link their digital asset investments to traditional assets. Additionally, they come with better ownership guarantee and regulatory approvals.
UAE Witnesses an STO Boom
Investors in the UAE spent $67 million in acquiring STOs in the Q1 2019, grabbing over 50% of the global share. However, the country isn’t as interested in creating STOs of its own. Of the 47 STO offerings, only two came from the UAE. Local investors are looking for opportunities in regions like Europe.
Fundament co-founder Robin Matzke said that real estate in Europe is particularly attractive to Middle Eastern investors who are becoming more accustomed to blockchain technology and digital assets. The UK, France, and Germany are some of the most popular destinations to get hold of prime real estate preferred by Middle Eastern companies like Gulf Islamic Investments, Investcorp, Sidra Capital and Sedco Capital.