The Middle East and North Africa region has become an attractive destination for cryptocurrency mining, as these regions have widely opened their economies to activities related to digitization and cryptocurrency.
With the world facing an ongoing energy crisis, the MENA region is poised to become an attractive destination for cryptocurrency mining, especially as this field is integral to the development of cryptocurrency economies.
While the largest cryptocurrency mining markets are currently in the USA, China, Kazakhstan and Canada, the energy crisis and the bearish cryptocurrency market could help the GCC countries become a leading crypto mining hub.
According to Coin Telegraph, Mohamed El-Masry, founder and CEO of Perminchain, which operates wasted energy bitcoin mining data centers in Canada, said the adoption and implementation of a blockchain data center infrastructure could support digital stability and financial security in the GCC region. Hypothetically, the GCC countries have the opportunity to attract nearly $1 trillion in economic growth by laying the groundwork to support the digital economy.
Al-Masry stressed that the main challenge is to call on financial regulators, especially in financial free zones, to stop following the enforcement approach and follow the regulatory approach first.
He added, Because the Gulf Cooperation Council (GCC) countries are a region rich in oil and gas, there is an abundance of natural gas energy that is wasted every day. Notably, this gas power supports the implementation and operation of low-cost power plants to attract Bitcoin mining companies from around the world to set up in the region.
According to him, this will allow the region to become a leader in providing field-generated electricity to support the future digital economy while reducing emissions and decarbonizing the oil and gas sector in the GCC countries.
The World Bank had previously reported that the Middle East and North Africa region accounts for 40% of the world's burning, with Iran, Iraq and Algeria producing 75% of the burning of the Middle East and North Africa region. Meanwhile, Saudi Arabia, Kuwait, United Arab Emirates and Qatar have low burning intensity.
During the week (Binance 2022), Khalifa Al Jaziri Al Shehhi, project advisor for the commercial affairs regulation sector in the UAE Ministry of Economy, claimed that the Dubai World Trade Center Authority (DWTCA) will legalize the crypto mining sector. He stated, “We are setting the necessary guidelines and rules to regulate cryptocurrency mining in this cryptocurrency framework.
Meanwhile, Pierre Samatis, Global Head of Economics and Energy for Cryptocurrency, emphasized that Bitcoin mining in the region is growing, stressing that Bitcoin mining is seen as a strategic asset, and a cornerstone for building the crypto economy in the region.
For their part, UAE investment firms have also shown interest in crypto-mining investments. In a panel discussion during the Security Token Summit in June 2022, Nabil Al Maskari, CEO of Al Maskari Holding, indicated that there will be significant investments in the field of cryptocurrency mining in the UAE.
Manaf Ali, founder and CEO of the UAE-based Phoenix Group, which is involved in crypto-mining equipment sales and projects, believes that the MENA region is moving rapidly towards cryptocurrency and blockchain adoption.
Ali also confirmed that the governments of the Gulf Cooperation Council countries have begun to address this by identifying these new business activities and issuing licenses to participants in the cryptocurrency market.
