‘Saudis Bidding’ Meme Undermined by Crypto Investor Survey

Nearly half of Saudi Arabian crypto investors planned to buy more crypto before the bear market took hold, according to a recent survey


Source: Shutterstock


key takeaways

  • KuCoin found sentiment is shifting negative among Saudi Arabian crypto investors
  • 76% of local digital asset holders have less than one year’s experience in the market

Bitcoin discourse has been swept by a fresh conspiracy-meme that posits Saudi Arabian investors are ready to bid billions on the top cryptocurrency, saving us all from the ongoing bear market.

Such a move would diversify the Kingdom’s reserves away from oil into ‘digital gold,’ securing its financial future in a world that hopes to one day shed its fossil fuel dependency — or so goes the theory.

But if a recent report from cryptocurrency exchange KuCoin is anything to go by, it’s mostly unfounded.

Based on a commissioned survey, KuCoin found the estimated total number of Saudi crypto investors has remained relatively stable all year, at around 3 million. But their sentiment is shifting negative, the exchange found.

The report states: “In the first quarter, around half (49%) of crypto investors intended to increase investment in crypto over the coming six months, followed by the bearish market when we saw the intention slightly drop in the second quarter of 2022, as more investors changed their strategies.”

KuCoin highlighted crypto adoption in Saudi Arabia is lower than the global average, and comes in third across the Arab world in terms of raw investor numbers. Growth in the number of registered KuCoin users from Saudi Arabia did however lead the other GCC countries throughout 2021.

Loading Tweet..

A majority (63%) of Saudi crypto investors are men, according to the survey, and persons below 30 years of age make up at least one third of all investors, with that figure rising to 37% throughout this year’s second quarter.

The report noted that the high proportion of fresh investors across Saudi Arabia is unique to their profile. 

“Roughly three-quarters (76%) of crypto investors have less than one year of experience in crypto investment, including half (49%) of investors who first started trading crypto in the past six months, suggesting strong demand for crypto education in the market,” KuCoin wrote.

Saudi investors adopt trading bots to beat bear market

Saudi Arabians are generally investing in cryptocurrency for the long-term, the report found. 51% of surveyed digital asset holders are in crypto as they believe it’s the future of finance, while 44% reckon crypto can reap higher returns than other types of financial investments.

Although, KuCoin relayed that in this year’s second quarter, 42% of crypto investors adopted auto-trading strategies — such as trading bots — to see them through the bear market, a 7% rise from Q1. 

Cryptocurrency exists in a legal gray area across the country, with local banks banned from handling transactions related to digital assets since 2018. And while there are no legal dangers for trading cryptocurrency, Saudi-based investors often pay close attention to what types of investments are approved under Islamic law (halal).

Source: KuCoin

According to KuCoin’s report, which was based on just 539 survey respondents, almost half of Saudi crypto investors buy crypto with fiat and spot trade every month, as it’s the only form of crypto trading considered halal by some scholars in the Arab world. 

Staking, futures trading and margin trading — involve interest and even gambling — are less popular.

As for what investors plan to do with their potential gains, 42% said they plan to improve their families’ living conditions, with other goals including buying a new house, saving for retirement or emergencies and other creature comforts like traveling and shopping.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

ao cover.jpg


Arweave recently launched the testnet for AO computer, a new messaging protocol that will sit atop a PoS network and aims to become a scalable global compute platform through parallel processing and modularity.


Ore’s price more than tripled as the supply of new tokens paused


I spend an unhealthy amount of time thinking about crypto securities law — and I can’t see how ETH is now a securities offering under Howey


Regulators in South Korea, Japan and Singapore could follow Hong Kong’s lead as Asia responds to spot bitcoin ETF approval in the US


Martin Grant worked with the Fed for roughly 30 years before leaving his position in 2022


BitGo CEO Mike Belshe shared his thoughts on the halving and bitcoin ETFs in an interview with Blockworks


Crypto markets were largely the only ones open over a tense weekend, and they took a beating for it