Saudi Arabia Tokenizes its Stock Exchange: When Vision 2030 Meets Ethical Blockchain

The recent announcement of a strategic partnership between WhiteBIT, a European cryptocurrency exchange platform, and Durrah AlFodah, a major player in Saudi Arabia, marks a decisive turning point in the region’s blockchain development ¹. This partnership is more than just a commercial agreement: it symbolizes the political and economic realization of the Kingdom’s deep-seated ambition to become a pioneer in sovereign digital finance that aligns with its cultural and religious values.

Through this initiative, Saudi Arabia is intensifying its efforts to build a robust digital infrastructure that integrates blockchain, decentralized finance, and secure data infrastructures in full harmony with its national Vision 2030 strategy. The introduction of tokenization within Tadawul — the Saudi stock exchange — exemplifies this ambition, promising to sustainably transform the country’s financial markets.

This article offers a detailed analysis of this new Saudi blockchain strategy: its foundations, operational mechanisms, and implications in a unique geopolitical and cultural context.

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2. Vision 2030: Blockchain as a Pillar of Transformation

Launched in 2016, Vision 2030 is the master plan aimed at repositioning the Saudi economy by reducing its historic dependence on oil. One of its major pillars is stimulating technological innovation, notably through the promotion of blockchain technologies and digital finance ².

Blockchain is seen as a strategic lever to establish transparent and efficient governance, modernize financial and public services, and attract investments in innovative sectors. According to authorities, blockchain enables better transaction traceability, reduces operational costs, and broadens market access — all essential elements for Saudi Arabia’s economic diversification ³.

This direction aligns with a global dynamic: Saudi Arabia aims to position itself as a regional and international fintech hub, especially in technologies compatible with its cultural norms, namely Islamic finance. The rapid growth of the blockchain sector is illustrated by a +51% increase in blockchain-related business registrations in Q2 2025, with more than 4,000 companies registered ³.

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3. Tokenization of Tadawul: A Revolution for Financial Markets

Tadawul, the official Saudi stock exchange, is currently undergoing a transformation through the tokenization of its assets. This process involves representing traditional financial instruments, such as shares, in the form of digital tokens, enabling smoother, instantaneous trading accessible to a broader audience ⁴.

Tokenization Mechanisms

Blockchain ensures decentralization and transaction security, protects against forgery, and facilitates real-time auditing. By transforming publicly listed company shares into tokens, Tadawul aims to:

• Increase liquidity: tokens can be fractionalized, sold, and traded 24/7, including internationally.
• Enhance transparency: every transfer is recorded on an immutable ledger, reducing manipulation risks.
• Open the market: democratize access to financial investments, notably for small investors.
• Reduce costs: eliminate intermediaries and accelerate processes.

These advancements are part of the Saudi Capital Market Authority’s (CMA) strategic plan, which actively promotes technological innovation to invigorate the local financial center and make it a regional model of integrity and efficiency ⁵.

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4. CBDC: Monetary Sovereignty in the Digital Age

Saudi Arabia’s blockchain strategy goes beyond stock markets. The Saudi Arabian Monetary Authority (SAMA), the country’s central bank, has been experimenting for several years with a central bank digital currency (CBDC) aimed at interbank payments and real-time gross settlement through Project Aber, developed in collaboration with the United Arab Emirates ⁶⁷.

This initiative targets two fundamental objectives:

• Maintaining monetary sovereignty: by controlling the creation and circulation of digital currency, the Kingdom can effectively regulate its financial system amid the proliferation of private cryptocurrencies.
• Increasing financial system efficiency: by enhancing settlement speed and security while reducing risks related to cross-border transactions.

Project Aber’s success reflects a commitment to combining innovation with strong regulation. It also lays the groundwork for a broader future CBDC rollout in the Saudi economy, complementing traditional instruments.

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5. Digital Sovereignty: Saudi Control over Infrastructure

A key pillar of the blockchain strategy is digital sovereignty. Saudi Arabia is heavily investing in the development of local digital infrastructures to ensure that sensitive data and financial services remain under national control ³.

Initiatives include:

• National data centers: situating cloud and blockchain infrastructures on Saudi soil to secure data availability and integrity.
• Regulatory framework: strict legal standards governing personal data processing and cybersecurity, ensuring compliance and protection.
• Energy monetization: optimal use of sustainably produced energy resources to power blockchain infrastructures, thereby reinforcing autonomy and sustainability.

These measures form part of a broader strategy to assert state sovereignty in the face of digital externalities, while remaining open to international partnerships founded on respect for local standards.

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6. Islamic Finance and Blockchain: A Natural Partnership?

Islamic finance is a fundamental sector of the Saudi economy, founded on ethical principles dictated by Sharia law, notably the prohibition of interest (riba), transparency, and risk-sharing.

With its inherent qualities of traceability, immutability, and transparency, blockchain appears perfectly suited to ensure financial operations comply with these religious requirements ³⁴. It notably enables:

• Automation of Sharia-compliant smart contracts.
• Traceability of funds, preventing illicit or speculative uses.
• Enhanced auditing and certification of compliance.

However, some challenges remain, such as the volatility of tokenized assets and the increased risk of speculation, which could conflict with Islamic principles. To address these issues, consortia of religious scholars, financial experts, and technologists are developing standards and certifications to ensure blockchain products conform to Sharia.

This convergence opens a new path to more integrated, secure, and innovative ethical finance.

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7. A Model for the Muslim World?

Saudi Arabia is not alone in the race for digital transformation and blockchain adoption in the Gulf region. The United Arab Emirates, Bahrain, and Qatar have also adopted ambitious strategies ³.

Nonetheless, due to its economic size and cultural heritage, the Kingdom follows a unique approach combining:

• Massive tokenization integrated into national financial markets.
• End-to-end sovereign control over data and infrastructure.
• Explicit respect and promotion of Islamic finance principles.
• Intergovernmental cooperation on CBDCs, notably with the UAE through Project Aber.

Therefore, Saudi Arabia’s strategy may serve as an advanced model for other Muslim countries seeking to balance technological innovation, cultural respect, and national sovereignty, playing a leading role in the emergence of ethical global blockchain finance.

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8. Opportunities and Risks for Ethical Investors

The tokenization of Tadawul, the development of CBDCs, and the rise of Sharia-compliant DeFi open many opportunities for investors looking for ethical and innovative alternatives.

Opportunities

• Easier access to Saudi financial markets via tokenization.
• Enhanced security and transparency thanks to blockchain technology.
• Sharia-compliant financial products minimizing religious risks.
• Participation in a rapidly growing ecosystem backed by strong government momentum.

Risks

• Volatility of digital assets, potentially problematic within Islamic finance.
• Regulatory risks linked to the still-maturing legal frameworks.
• Excessive speculation contradicting ethical principles.
• Technological and cybersecurity challenges, which may impact investor confidence.

Saudi authorities and their technology partners advocate for balanced solutions combining openness and control to ensure a sustainable, ethical digital financial ecosystem.

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9. Conclusion

By combining Vision 2030, blockchain innovation, and Islamic finance requirements, Saudi Arabia is carving a unique and exemplary path toward a sovereign, transparent, and ethical digital economy. The WhiteBIT - Durrah AlFodah partnership embodies this momentum, affirming the Kingdom’s ambition to assert itself as a regional leader and global model in the responsible integration of blockchain technologies.

The Tadawul tokenization project, CBDC experiments with Project Aber, and strict digital sovereignty control form a dynamic triptych reflecting a globally ambitious and well-orchestrated strategy. This approach opens unprecedented prospects both for the Kingdom’s economic development and for the broader Muslim world, which is actively seeking a balance between technological modernity and traditional values.

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References

Footnotes

1. Cryptopolitan. WhiteBIT secures a Saudi Arabia partnership. ↩

2. Vision 2030. FinTech Strategy. ↩

3. Blockchain Solutions. The Role of Blockchain in Saudi Arabia's Vision 2030. ↩ ↩² ↩³ ↩⁴ ↩⁵

4. Naquib Mohammed. LinkedIn Post. ↩ ↩²

5. CMA. Capital Market Authority Strategic Plan. ↩

6. SAMA. Project Aber report. ↩

7. SAMA. Saudi Central Bank Continues CBDC Experimentations. ↩