Abu Dhabi's sovereign wealth fund Mubadala is investing in the cryptocurrency ecosystem with $ 234 billion in assets under management.

Khaldoon al-Mubarak, CEO of Abu Dhabi's sovereign wealth fund, Mubadala Investment Capital, recently told CNBC about his interest in cryptocurrencies. He claimed that the money invested in the cryptocurrency ecosystem and defined blockchain technology and energy as the most interesting area. In terms of blockchain technology, energy, etc.

Mubadala Investment Capital is said to have ties to Abu Dhabi Crown Prince Mohamed bin Zayed.



The fund got involved in cryptocurrency at the start of 2019 and invested in MidChains, the main cryptocurrency exchange in the United Arab Emirates. MidChains started trading four cryptocurrencies (BTC, BCH, LTC, and ETH) at the end of September.

The founders of MidChains said they met Mubadala about a year before finalizing the deal. The value of the investment was not disclosed but said it was a seven-digit figure in US dollars.

Crypto regulations in the United Arab Emirates

Khaldoon al-Mubarak, who runs Manchester City Football Club, has made it clear that he is not skeptical about the cryptocurrency market. He said technology output is "real" and the cryptocurrency industry is growing rapidly and its market value has grown from $ 250 billion to $ 3 trillion in just a few years.

“A lot of people are skeptical. I don't associate with people like that. I think this (cryptocurrency) is real.”

Regarding cryptocurrency policy, Al Mubarak said nothing has been achieved.

However, to some extent, he thinks the current environmental management needs to change. In this way, cryptocurrencies can be turned into "new" class assets.

The UAE Central Bank does not yet regulate crypto assets. In the past, the central bank has said it is unaware of this new asset.

On December 4, 2019, the UAE Central Bank rejected the announcement on the topic “UAE Central Bank President Supports Personal Cryptocurrency Trading Platforms”.

In another statement, the bank said its stance on cryptocurrencies is "well known" and that it does not endorse any private equity or private services and has not been licensed in the United Arab Emirates. The Central Bank of the United Arab Emirates believes that "for example, cryptocurrencies pose a risk associated with fluctuations in exchange rates, money laundering and financial corruption."

Currently, the UAE dirham remains the only legitimate competition accepted in the country.

At the same time, the UAE central bank is still exploring digital advantages. In January 2019, the Saudi Arabian Financial Institutions (SAMA) and the Central Bank of the United Arab Emirates jointly launched Aber, a digital currency project to help cross the borders between the two countries.

At the end of November 2020, the central bank between the United Arab Emirates and Saudi Arabia announced Aber's announcement for the CBDC project. The report notes that the Aber project will be divided into three phases, gradually expanding the pilot project to other companies. The report concludes that CBDCs are not only capable of making cross-border payments, but also offer significant improvements in payments between exchange rate models. The report describes the next steps in policy research and management, including the use of data distribution technology to improve the security of existing and extended systems. Details of future experiences on the Aber project.

The UAE Central Bank is also planning to introduce digital advantages as part of its 2023-2026 strategy.