The cryptocurrency world may change — Middle East countries plan to buy cryptocurrency worth $ 1 trillion

In the coming years, the young heirs of the Middle East’s oil families will inherit more than $ 1 trillion in assets, and they plan to invest a significant portion of these funds in cryptocurrencies, hedge funds, and tokenized assets. According to Bloomberg, citing the Tharawat Family Business Forum, more than 70% of the region’s 34 family offices are already investing in private markets, and almost 60% in venture capital, with some creating their own funds with exposure to digital assets.

A striking example of this trend is the Kanoo Group, a 135-year-old trading dynasty from Bahrain that has historically specialized in logistics and oil refining. In 2020, 22-year-old twins Abdulaziz and Abdullah Kanoo, representatives of the fifth generation of the family, proposed to invest part of their capital in bitcoin. After long discussions, the family’s investment committee agreed, and the first investment in BTC ended in profit.

The 28-year-old Kanoo brothers have now founded their own digital asset management company, which invests in cryptocurrencies on behalf of other family offices in the region. Meanwhile, Kanoo’s head office continues to operate through funds with hedge fund strategies focused on the crypto market. The younger generation of investors is looking for greater transparency, speed, and accessibility that blockchain solutions provide.

The financial centers of Dubai and Abu Dhabi have already attracted more than 70 hedge funds, including such giants as Brevan Howard Asset Management and Marshall Wace. According to HSBC and Campden Wealth, digital asset strategies are among the top 10 most sought-after areas among hedge funds in the region, confirming the growing interest in this market segment.

Matthias Gonzalez, Head of Barclays Private Bank Middle East and Switzerland, notes that the region’s wealth is going through an unprecedented transformation phase. Whereas previous generations focused on real estate and oil, the new heirs are looking to diversify through ESG projects, venture capital funds, and digital assets. The Middle East is on the verge of a large-scale reorientation of capital from traditional assets to the digital economy.