Japanese crypto powerhouse SBI Holdings has inked a fundamental agreement for a strategic alliance with the colossal $2 trillion oil titan, Saudi Aramco.
The collaboration marks a pivotal step in SBI’s concerted efforts to explore a partnership with the Saudi Arabian oil company.
As per the latest report dated December 11, 2023, the partnership blueprint encompasses the establishment of semiconductor manufacturing facilities in both Japanese and Saudi Arabian territories. Beyond this, the accord delves into co-investments within each other’s digital asset portfolios, embracing the world of cryptocurrencies.
This multifaceted collaboration spans across three key domains. Firstly, it revolves around cooperative endeavors and reciprocal investments in the realm of cryptocurrencies. Secondly, it entails identifying and bolstering Japanese crypto startups keen on expanding their footprint into Saudi Arabia. Lastly, it envisages the inception of ventures centered around semiconductor initiatives.
It is worth noting that the Middle East has emerged as a welcoming enclave for crypto endeavors, with SBI Holdings actively pursuing its foray into the region. Notably, plans for establishing “SBI Middle East” in Riyadh have been disclosed, aimed at facilitating the growth of Japanese cryptocurrency startups within Saudi Arabia.
In return, Saudi Arabia is striving to position itself as a prominent crypto hub within the Middle East, vying for a stature akin to the UAE.
According to a Chainalysis report, Saudi Arabia has globally led the charge with a remarkable 12% year-over-year surge in crypto transaction volumes. Spanning from July 2022 through June 2023, transactions soared to an impressive $31 billion.
The Middle East and North Africa (MENA) region have also emerged prominently on the crypto map. Chainalysis data underscores the MENA region as the sixth-largest crypto economy globally.
Within the same timeframe, the MENA crypto economy surged to an estimated $390 billion. Despite this exponential growth, the region’s cryptocurrency market lags behind North America and Western Europe.
The burgeoning collaboration between SBI Holdings and Saudi Aramco symbolizes a stride toward solidifying the region’s foothold in the ever-evolving landscape of cryptocurrencies and semiconductors, marking a significant leap toward fostering innovation and partnerships on a global scale.