Crypto Oasis Ecosystem Report 2022

Crypto Oasis, the region’s leading blockchain ecosystem, has expanded at an unprecedented rate over the past year. Coined to stand out against the likes of Silicon Valley and Crypto Valley, Crypto Oasis launched in Dubai in April 2021.

Today, it is home to more than 1,300 organizations in the UAE alone. The forecast is to identify over 1,500 established organizations across the region by the end of 2022. The ecosystem is a collaborative platform for investors and collectors, startups and projects, companies, science and research institutions, service providers and government entities and associations, which recognize blockchain as a potentially transformative technology with the ability to improve returns and disrupt existing business models.

Crypto Oasis – in collaboration with Roland Berger – recently launched a comprehensive report to share valuable insights into some of the notable blockchain initiatives in the UAE, highlighting the key pillars including talent, capital and infrastructure. The initiation Crypto Oasis Ecosystem Report highlights the confluence of blockchain activities in the UAE, underpinning Crypto Oasis’ role as a regional and central hub for blockchain and fintech innovation.

The Crypto Oasis Ecosystem Report is a periodic report, which will be published every six months, focusing on market development and new technologies such as blockchain, IoT (internet-of-things), AI, Web3, metaverse and many more.

This report established the first quantitative and qualitative ecosystem study of the Crypto Oasis blockchain ecosystem and identifies its various stakeholders. It contains articles from major players in the industry such as State Street, Securrency, Phoenix, Virtua, DIFC, DMCC, Ripple, Simmons and Simmons, Crypto 1, Tokengate, TDEFI and many more.

The Crypto Oasis Ecosystem Report will help set the baseline from which growth can be identified in the following years, as Crypto Oasis looks set to become a center of blockchain excellence.

In a strategic partnership with the Dubai Multi Commodities Center (DMCC), Crypto Oasis has helped many blockchain organizations obtain licenses to operate in the UAE. DMCC has a long history as a global hotspot for companies trading gold, coffee and diamonds and is now adding a crypto vertical in alliance with Crypto Oasis and other partners.

The report sheds light on this and other partnerships, which have complemented the growth of various sectors alongside the blockchain ecosystem.

Decentralized Finance (DeFi)
DeFi is an emerging and rapidly developing field in the blockchain environment. In the Middle East, the UAE has been at the forefront of innovation and new technologies. As decentralized finance gains greater traction in the country, the country cements its status as one of the world’s most blockchain-friendly countries.

The report highlights how DeFi is making significant strides in revolutionizing the world of finance, and the UAE is rising to the challenge of changing the current ways of finance and commerce for the better. According to the Dubai Multi Commodities Centre, the total value locked in DeFi protocols was $20 billion at the start of 2021 and increased exponentially to $260 billion by the end of the year.

“DeFi created a new paradigm in the development of financial markets. It challenged long-standing structures in finance by taking transaction control from traditional nexus systems and delivering it directly to consumers in blockchain-enabled peer-to-peer transactions,” says Manuel Rensink, head of strategy in Securrency. The report also looks at the growing relevance of NFT-based marketplaces in the crypto world. Although the details vary from platform to platform, these types of NFT marketplaces are likely to become commonplace in the near future, offering decentralized and trustless trading that is only limited by the imagination of their creators.

The desire of companies to experiment with NFT technology is as strong as ever. Demand from companies in our sales department for NFT projects is higher than ever before. “We work with various companies from the technology, culture, media, sports and automotive industries who want to leverage and integrate NFT technology to launch and test new business models,” says Tom Rieder, metaverse collection and advisory board, Tokengate, one of the NFT companies at Crypto Oasis.

NFTs are one of the biggest revolutions for artists and creators in recent times. They make the digital world unique; they provide new ways for creators to receive royalties and allow artists to reach a vibrant and limitless market. However, due to their often superficial implementation, NFTs do not reach their full potential. This also damages the long-term value for collectors,” comments Niko Kipouros, founder at 4ARTechnologies, which has brought innovative solutions to the art world, focused on combining class-leading security with accessibility.

“To bring in creators and collectors outside of the blockchain ecosystem, technological barriers need to be lowered and the community opened up. Making FIAT payments and multi-chain choices for NFT mining widely available expands the appeal tremendously,” he adds.

Investment in Crypto Oasis
Dubai is known for its thirst for innovation and continues to push the boundaries of new technology to develop a competitive economy. In the couple of years that followed, major banks and companies in Dubai and the entire UAE can be seen to have begun to explore the possibilities of the technology. For example, the UAE’s Rakbank teamed up with top crypto platform Kraken to offer dirham-based digital asset trading. Kraken was the first global crypto exchange platform to receive a license from UAE regulator Abu Dhabi Global Market.

Moreover, the fervor for cryptocurrency trading globally amid the health crisis permeated the UAE as well. According to a PwC report, the country’s share of the global crypto market is around $25 billion in transactions, which increased by 500 percent between July 2020 and June 2021.

In the second half of 2021, cryptocurrency trading appears to be one step closer to legitimacy within the Dubai World Trade Center Authority (DWTCA) free zone. The DWTCA and the UAE’s Securities and Commodities Authority reached an agreement establishing a framework that allows for the regulation, offering, issuance, listing and trading of crypto-assets within the free zone. This has led to a number of well-known crypto exchanges establishing themselves in the emirate.

In Dubai, the number of visitors increased by 183 percent to 7.1 million in the first half of 2022 compared to the same period last year. In particular, Henley & Partners estimates that the UAE will lead the world in attracting high net worth individuals by the end of 2022, with a projected net inflow of 4,000 high net worth individuals.

The flow of capital in the country has also increased noticeably. This is evidenced by its 46 percent share of total venture capital received in the MENA region and the over 26 percent share of total transactions in 2021. According to the Ministry of Economy, venture capital investments in the UAE actually increased by 12 percent in 2021 compared to 2020.

Abu Dhabi Global Market (ADGM), the international financial center in Abu Dhabi, announced its framework for controlling operations involving spot crypto assets in 2018, including those conducted by exchanges, custodians and other intermediaries in the ADGM. Meanwhile, with the launch of the Virtual Assets Regulatory Authority this year, Dubai has strengthened its commitment to blockchain and cryptocurrencies.

Then there are also venture capitalists who have shown interest in Dubai’s Blockchain climate in 2022, such as Draper Goren Holm, Woodstock Capital and True Global Ventures. Some UAE-based venture firms have also committed significant funds to blockchain startups. One such example is the March 2022 launch of Cypher Capital’s $100 million blockchain-focused fund.

“Crypto Oasis Sentio, Crypto Oasis’ investment arm is also helping to cultivate a robust blockchain ecosystem in the Middle East. It aims to invest in early-stage startups emerging from the Crypto Oasis ecosystem and currently has a growing portfolio, with projects such as Grizzlyfi, UFO Gaming, Meta-Mall, Ex-Sports, Safle and others, says Saqr Ereiqat co-founder and managing partner of Crypto Oasis Sentio.

To download the report, click here

Read: Crypto Valley Association, Crypto Oasis join forces to boost blockchain development in the Middle East