Good news:

Gulf Crypto Alliance with China and Russia

Gulf Cooperation Council (GCC) countries – notably the UAE and Saudi Arabia – are forging a strategic digital finance alliance with China and Russia. The core objectives are reducing historic dependence on the US dollar. and establishing a multipolar global financial system. This shift responds to geopolitical pressures (e.g., US sanctions and repercussions of the Ukraine war) and aims to diversify oil-reliant economies.

Technological Focus: Rapid development of crypto and digital financial infrastructure underpins this strategy:

1. Central Bank Digital Currencies (CBDCs): UAE, Saudi Arabia, Bahrain, and Oman are actively testing CBDCs to facilitate cross-border transactions and replace the dollar in international settlements.

2. Stablecoins: Valued for price stability, these are attractive tools for regional digital economy growth. The UAE leads with its central bank-regulated stablecoin (AE Coin).

3. Joint Projects: Collaboration on initiatives like mBridge (a cross-border CBDC platform) demonstrates concrete commitment to linking national digital systems.

Geopolitical Alignment: This financial transformation aligns with strengthened political and economic ties with China, Russia, and the BRICS+ bloc. UAE and Saudi membership in BRICS and joint digital projects reflect efforts to create alternative financial mechanisms to the dollar-dominated system.