Saudi's Kingdom Holding Remains Cautious on Crypto Despite Surge in MENA Region Adoption

Kingdom Holding, the investment firm of Saudi Arabian Prince Alwaleed Bin Talal, has stated that it will not invest in cryptocurrency in the near future, citing the lack of widespread adoption as a payment method for goods and services. CEO Talal Ibrahim al-Maiman shared this position with Reuters, emphasizing the company's cautious stance.

Prince Alwaleed, a senior member of the Saudi royal family known for his Warren Buffett-inspired value investing approach, has consistently avoided crypto investments. Kingdom Holding, with an estimated $13.6 billion in assets, maintains a diversified portfolio that spans sectors such as finance, hospitality, healthcare, media, technology, and real estate.

"We support Mr. Buffet's theory what you don't buy with, don't invest in, so as we cannot buy any goods with cryptocurrencies therefore we are currently not looking in investing in them,” Al-Maiman explained on the sidelines of the World Economic Forum in Davos, according to Reuters.

Despite persistent rumors on social media suggesting that the Saudi royal family might venture into cryptocurrencies, the company remains cautious. The recent improvement in the U.S. regulatory landscape under President Donald Trump’s pro-crypto stance was seen by some as a potential catalyst for such an investment.

Alwaleed’s past public comments further reflect his skepticism toward digital currencies. In 2017, the Saudi prince stated that he believes Bitcoin is “just going to implode one day.”

However, it’s important to note that while Kingdom Holding remains hesitant, the cryptocurrency market in the Middle East and North Africa (MENA) region has experienced substantial growth. A recent report from Chainalysis highlighted that Saudi Arabia and the UAE have been at the forefront of this rise, with Saudi Arabia alone seeing a 153% year-on-year growth in crypto transactions, reaching $47.1 billion over the past year.

This signals growing institutional interest in the region, which contrasts with the more cautious approach taken by Kingdom Holding. Despite Alwaleed’s public stance, the broader regional adoption of cryptocurrencies, particularly for investment purposes, suggests that the landscape may be evolving rapidly.

This shift in the MENA region could eventually lead to a reassessment of crypto investments, even among traditional firms like Kingdom Holding, as the market continues to expand and gain legitimacy.