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SAUDI ARABIA — AN OIL GIANT BUILDING DIGITAL ARCHITECTURE
Diagnosis of the Old Model and Its Place in the New Energy-Digital System

INTRODUCTION: A BRIEF DIAGNOSIS
Saudi Arabia is the least obvious but one of the most strategically important players in the new energy-digital system. It is a country that is simultaneously:
• An energy giant — the world’s largest oil exporter, controlling a significant share of the global hydrocarbon market.
• An institutional investor — the Public Investment Fund (PIF) manages assets of ~$1 trillion. In April 2026, the strategy for 2026–2030 was approved, where tokenization of sovereign and strategic assets was named a central pillar of diversification [2][7][8].
• A participant in mBridge — Saudi Arabia became a full participant in the platform in 2024, joining China, Hong Kong, Thailand, and the UAE [5][9].
• A major crypto market — 7.4 million users by 2026 (penetration ~20%), $48 billion in transactions from July 2023 to June 2024 [3].
• A builder of digital infrastructure — the digital economy reached SAR 495 billion (~$132 billion) in 2025, accounting for 15% of GDP. Over 4,000 commercial registrations of blockchain companies in 2025 (+51% year-on-year) [1].
Saudi Arabia’s paradox: a country with one of the most conservative positions on cryptocurrencies (SAMA has not licensed a single exchange, financial institutions are warned of risks) is building the most large-scale state infrastructure for tokenizing real-world assets in the world [1][3].
Publicly — caution. In practice — PIF is tokenizing the economy through $1 trillion in assets [2][7][8].

SECTION 1. THE OLD MODEL: WHAT EXISTED, WHAT BROKE
Saudi Arabia’s economic model of recent decades rested on three pillars:
Oil exports — the foundation of the budget and foreign exchange earnings.
The U.S. dollar — the riyal’s peg to the dollar, the petrodollar system.
State control — centralized economic management through PIF and ministries.
This model works, but it is faltering.
Dependence on oil. Oil remains the foundation of the economy, but oil prices are volatile. In 2026, the conflict in the Middle East pushed Brent above $100 per barrel, but geopolitical risks make forecasts uncertain.
Diversification as an imperative. Vision 2030 is a transformation program launched by Crown Prince Mohammed bin Salman. The goal: reduce dependence on oil, develop non-oil sectors, create new sources of income. Asset tokenization has become one of the tools of this strategy [2][7][8].
The map (oil revenues, dollar peg, state control) has ceased to reflect the territory (oil volatility, the global shift to digital assets, the need for diversification).

SECTION 2. ENERGY PROFILE: WHAT EXISTS, WHAT IS MISSING
Saudi Arabia is an energy giant, but its model depends on exports.
What exists What is missing
World’s largest oil reserves Sufficient export diversification
Control over the global oil market (OPEC+) A flexible economy without oil
Developed oil infrastructure Significant domestic energy demand
Strategic location in the Middle East Complete independence from geopolitical shocks
Key fact: Saudi Arabia is not an “energy-deficient” country. It has energy. But its main challenge is monetizing energy amid global transition. Vision 2030 is the response to this challenge [2][7][8].
New element: tokenization of energy infrastructure.
In January 2026, Open World launched the first licensed RWA Tokenization Center of Excellence in Al-Khobar. Target sectors: energy infrastructure, real estate, carbon credits. Pilots — mid-2026 [1].
This is not an “experiment.” This is state policy.
Conclusion: Saudi Arabia is not building the new system aggressively, like China. It is building it institutionally — through PIF, licensing, and partnerships with global players (Tether, Open World, droppRWA) [1][2][4]. This makes its strategy more sustainable than many other countries’.

SECTION 3. POSITION ON MINING AND CRYPTOCURRENCIES
Here lies Saudi Arabia’s main paradox.
3.1. Mining: virtually non-existent
Saudi Arabia’s share of global hashrate is less than 0.5%. Electricity costs ($0.04–0.06/kWh) make mining economically unviable compared to Russia or Iran. Saudi Arabia does not mine — it tokenizes.
3.2. Crypto market: stability dominates
• 7.44 million users by 2026 (penetration ~20%) [3].
• $48 billion in transactions from July 2023 to June 2024 [3].
• 70% of young adults (18–35) own cryptocurrency [3].
• Top 10 countries by crypto transaction volume in 2025 (>$50 billion) [3].
3.3. Regulation: a gray zone that works
• SAMA has not licensed a single crypto exchange. Financial institutions are warned of risks [1][3].
• Taxes: 0% income tax for individuals. Zakat (2.5%) for citizens and GCC residents. Corporate profit tax — 20% for foreign/mixed structures [3].
• Sharia: a 2022 fatwa from leading scholars confirmed that spot trading of cryptocurrencies can comply with Sharia principles [3].
• CRS 2.0: in April 2026, Saudi Arabia signed the addendum to the MCAA, expanding reporting on financial assets, including crypto assets and CBDCs [6].
Saudi Arabia’s paradox:
It does not legalize crypto exchanges, but builds institutional tokenization [2][7][8]. It does not tax personal crypto income, but introduces CRS 2.0 for crypto asset reporting [6]. It does not allow public trading, but attracts Tether for real estate tokenization [1][4].

SECTION 4. POSITION OF THE CENTRAL BANK (SAMA) AND REGULATORS
Saudi Arabia uses a two-tier regulatory model [1]:
4.1. SAMA (Central Bank)
• Mandate over payment systems, AML/CFT, operational resilience [1].
• Responsible for payments, settlements, and tokenized monetary instruments [1].
• Participates in mBridge as a full member [5][9].
4.2. CMA (Capital Market Authority)
• Regulates trading, marketplaces, and brokering if the activity resembles the securities market [1].
• Responsible for asset tokenization where tokens represent rights to real assets [1].
4.3. Infrastructure oversight (CST + NCA)
• Cybersecurity, PDPL (data protection law), data classification [1].
• Control over hosting, nodes, cloud environments, and key management [1].
Key principle: licensing, oversight, and auditability are built into the architecture from day one. “Compliance is not a second stage. It’s the entry ticket” [1].

SECTION 5. ARCHITECTURAL CONCLUSION: WHAT PATH IS AVAILABLE TO SAUDI ARABIA
Saudi Arabia is the only country that simultaneously:
Manages the largest state fund ($1 trillion) for economy-wide tokenization [2][7][8].
Is a full participant in mBridge (CBDC platform with China, Hong Kong, Thailand, UAE) [5][9].
Has 7.44 million crypto users (~20% of the population) [3].
Launched the first licensed RWA Tokenization Center of Excellence [1].
Attracts Tether for real estate tokenization through Hadron [1][4].
Signs CRS 2.0 for crypto asset transparency [6].
Does not license crypto exchanges and makes no loud statements about de-dollarization [1][3].
Unlike the UAE — Saudi Arabia is not building a “crypto hub” for everyone. It is building institutional tokenization under state control [1][2].
Unlike China — it does not ban crypto outright. It creates parallel infrastructure, but without ideological pressure [5][9].
Unlike the U.S. — it does not try to “save” the old system. It builds a new one, but quietly, without public declarations.
Saudi Arabia’s weaknesses:
Dependence on oil. Even with diversification, oil remains the foundation of the budget.
Conservative regulation. The lack of clear rules for crypto exchanges creates uncertainty for business [1][3].
Infrastructure constraints. Data centers — 1.9 GW by 2030, but competition for resources is growing.
Regional instability. The conflict in the Middle East creates risks for all regional players.
Main conclusion:
Saudi Arabia will not “import” bitcoin like Europe. It has oil, capital, and strategy. It will tokenize its assets and plug into infrastructure that makes de-dollarization possible — but does not announce it publicly.
Bitcoin for Saudi Arabia is not an “energy coupon” or a “strategic reserve.” It is an instrument of institutional transformation — a way to protect national wealth from global shocks through tokenization [2][7][8].

CONCLUSION: HOW SAUDI ARABIA FITS INTO THE GLOBAL TRANSITION
Saudi Arabia is not the architect of the new system, nor its victim. Saudi Arabia is a builder. The most cautious, but the most systematic player in the new energy-digital system.
Europe will become an eternal bitcoin importer — because it has no energy.
China is building parallel infrastructure — because it has a strategy.
The U.S. is trying to maintain dominance through a bitcoin reserve — because the dollar no longer works.
The UAE is building a crypto hub — because they have resources and pragmatism.
Saudi Arabia is building a tokenized economy — through PIF, mBridge, and institutional partnerships. It makes no loud statements. It is in no hurry. But it is already building:
• Tokenization through PIF ($1 trillion in assets) [2][7][8].
• Participation in mBridge (alternative payment infrastructure) [5][9].
• Data center infrastructure (1.9 GW by 2030).
• Partnerships with Tether (real estate tokenization) [1][4].
• CRS 2.0 (crypto asset tax transparency) [6].
Global meaning: Saudi Arabia shows that even the most conservative player can integrate into the new system — if it has resources, capital, and strategy. Its path is not a path of “hype,” but a path of institutional transformation. And this makes it the most dangerous competitor to the old system: it does not fight it. It simply builds parallel architecture.
The question is not whether Saudi Arabia will use bitcoin. The question is whether it can complete its transformation faster than the oil model finally stops working.

FULL LIST OF SOURCES
Chambers and Partners — Saudi Arabia Digital Assets & Blockchain Infrastructure: Sovereign Compute & Regulation (March 2026)
MENA Fintech Association — Saudi Arabia’s PIF Unveils Ambitious Asset Tokenization Plan (May 2026)
MEXC Blog — Crypto Tax In Saudi Arabia: Rules, Rates & Investor Guide (April 2026)
Midas — Suudi Arabistan, tokenlaştırmayı ekonomik çeşitlendirmenin merkezine yerleştiriyor (May 2026)
Gate News — mBridge cross-border CBDC platform is nearing commercial launch (June 2026)
Regfollower — Saudi Arabia joins jurisdictions adopting Addendum to CRS MCAA (July 2026)
CoinMarketCap — Saudi Arabia moves to tokenize its multi-trillion economy (May 2026)
Mitrade — Saudi Arabia moves to tokenize its multi-billion dollar economy (May 2026)
HTX — 沙特阿拉伯以全面参与者身份加入BIS的CBDC项目mBridge (August 2026)

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