Why do Saudi Arabian authorities still neglect Bitcoins?
Since the foundation of the Saudi Arabian Kingdom in 1932 Saudi Arabian Riyal has remained under a direct and stringent control of the Saudi Arabian Monetary Authority (SAMA), which acts as the country's central bank. That fact alone may explain an extraordinary stability of the SAR's exchange rate, which, during the past three decades, has sensibly deviated from its sacramental value of 3.75 SAR to 1 USD only once. That had happened during 2008 financial crisis, when SAR/USD ratio temporarily hit 3.71 mark.
Naturally, then, that with such phenomenal, almost divine authoritative power concentrated in its hands, SAMA couldn't care less about potential competition from part of crypto. It was again re-confirmed in a period of September - October 2017, when several high positioned government officials expressed their disdain for Bitcoin, stating that, despite recent upsurge in crypto prices, they do not believe in its future. Additionally, they asserted that such an incoherent apparition as the decentralized digital currency, which is not backed by any government, doesn't deserve an attention of important people and must stay outside of the Kingdom's legal realm.
Looks like, however, that such a scornful disregard of Saudi regulators may only enchant local crypto-community, which has been effectively left alone and might now accumulate digital treasures without being immediately harassed by tax and security market watchdogs. Some, nevertheless, may argue that an absence of comprehensive regulations is a serious impediment to the adaption of crypto by local banks, exchanges and retail businesses. Still, it's hard to see how in a country, where almost all state institutions, including religious establishment (as had been expressed by a popular cleric during one of the local TV show in December 2017), do have some serious misgivings about the new form of cryptographically reinforced electronic money, there may be ever adapted any kind of pro-crypto legislations.
Business Notes for Startups Founders:
political climate: not friendly;
economic climate: not friendly;
regions to focus: locally;
industries to focus: e-commerce (real-estate), e-services (on-line shopping), e-games;
major limitations: slowing economy (GDP growth rate is below zero), high legal and administrative barriers to SME, shortage of qualified work-force;
stimulus: high-income population (per-capita exceeds $21,000), developed infrastructure (fixed Internet penetration rate at almost 70%), low energy costs;
opportunities: to create a local e-business aiming at young rural users of mobile Internet.
Cryptocurrencies and ICOs (outlook): not regulated (negative).
The author: Svyatoslav (Svet) Sedov
Angel investor and founder of The First International Incubator for Silicon Valley Companies (FirstInternational.In) in the Bay Area, CA, USA.
Twitter: https://twitter.com/SvjatoslavSedof