Bader Kalooti, Binance’s regional growth and operations head for MENASAT. / Image: Supplied
Binance has cemented its status as a pivotal entity in the Middle East and North Africa (MENA) region. The platform has reported around 20 percent growth in MENA since 2020, driven by a strategy focused on local adaptation, regulatory cooperation, and innovation.
Central to these initiatives is Bader Kalooti, who leads regional growth and operations at Binance. In a recent interview, he shared insights on how Binance is navigating the region’s diverse dynamics, enhancing its regulatory frameworks, and fostering new blockchain innovations.
Local Relevance, Global Impact
The company’s ongoing success in MENA is a testament to its ability to navigate a complex landscape. “The Middle East is swiftly becoming a hub for cryptocurrency, attracting platforms and projects that aim to establish their Web3 ventures here,” Kalooti remarked. “Every region has its distinctions, and we witness the community attracting various facets of the industry.”
He pointed out that Binance is dedicated to working within regulatory structures that facilitate comprehensive operations tailored to each country’s specific economic and technological needs.
Strategic Growth: Expanding from the UAE and Bahrain to Saudi Arabia and Beyond
Binance has gained attention as the first global exchange to obtain a Virtual Asset Service Provider (VASP) license in the UAE and a Category 4 license in Bahrain. The firm is also proactively entering emerging cryptocurrency markets in Saudi Arabia, Egypt, and Kuwait.
“The MENA region is crucial for Binance and the Web3 sector for multiple reasons,” Kalooti noted. “It boasts a young, tech-savvy population of 600 million, with 60 percent under 30 and a smartphone penetration of 75 percent.”
For economically advanced regions, digital assets act as a means of diversification. In countries with lower GDPs, cryptocurrencies offer opportunities for enhancing financial inclusion. “Remittance pathways represent a substantial opportunity ripe for Web3 innovation, with about $150 billion in outflows from the Gulf Cooperation Council (GCC),” he elaborated. “Collaboration with banks, fintech, and government entities is essential for ensuring compliance.”
Halal Digital Finance: Innovation in Sharia Compliance
Binance achieved a milestone by introducing Sharia Earn, its first cryptocurrency product tailored to Islamic financial principles.
“As we look to the future of halal digital services, Sharia Earn will certainly grow and evolve,” Kalooti stated. “It meets a complex global demand and must continuously adapt to the expectations of various communities.”
He emphasized that Binance intends to expand its range of tokens and markets while adhering to Islamic financial regulations, declaring, “This is merely the start.”
Promoting Mass Adoption Through Education
Binance places a strong emphasis on education as part of its regional strategy. Its Arabic-language program, Blockchain for Everyone, along with partnerships with institutions like ADGM Academy, aims to bridge knowledge gaps.
“Education is a primary focus for Binance, and we take it very seriously,” Kalooti commented. “Even in markets with high awareness, complexities and volatility create apprehension due to limited financial and technical knowledge. Providing clear education through practical examples helps foster user trust.”
Cybersecurity: Addressing Increasing Threats
With the rise in cryptocurrency adoption comes heightened risk. Kalooti highlighted phishing schemes, impersonation fraud, and deepfake-related scams as prevalent threats in the sector.
“Scammers are keen to take advantage of the public’s growing interest in crypto and their trust in Binance,” he warned. “The introduction of AI and deepfake technology means that these scams can be alarmingly convincing.”
To safeguard its users, Binance advocates for vigilance and has created tools like Binance Verify, allowing users to check addresses, URLs, phone numbers, or usernames for legitimacy.
Increasing Institutional Interest Across Gulf Industries
There’s a notable uptick in institutional interest in cryptocurrency, spanning sectors from sovereign wealth funds to telecommunications. “We are observing heightened institutional adoption across the board,” said Kalooti.
He referenced a 2023 partnership with Bahrain’s Beyon Money and a $2 billion investment from Abu Dhabi-based MGX as distinct demonstrations of Binance’s support for industry participants. “We are actively working to meet institutional needs by providing customized services that cater to the specific requirements of each sector.”
Real-World Applications: Supply Chains and Healthcare
According to Kalooti, the most promising practical applications of blockchain in the Gulf lie in logistics and healthcare. “I am particularly enthusiastic about how blockchain can enhance transparency and traceability in food supply chains and pharmaceutical logistics to ensure halal compliance, reduce counterfeiting, and foster trust,” he explained.
In the healthcare sector, he added, “decentralized record-keeping could revolutionize the field. Secure, consent-based access to medical information can create a more seamless and reliable healthcare experience.”
Fostering Ecosystem Growth Through Partnerships
Beyond regulatory agencies, Binance acknowledges the importance of universities, venture capitalists, and incubators in promoting blockchain innovation. “Each plays a unique role,” Kalooti stated.
Incubators and VCs supply the foundational support and funding required for startups, whereas educational institutions prepare the future workforce. He cited Binance’s collaborations with Gulf Colleges and the Riyadh Chamber as an example of their commitment to blockchain education in Saudi Arabia.
“This collaboration focuses on workforce development, co-designing curricula, creating instructional materials, and establishing certification programs.”
Looking Ahead: Binance’s Role in the Gulf’s Digital Economy
As we look to the future, Kalooti envisions Binance expanding its influence in establishing digital infrastructure within the Gulf.
“We see Binance as an essential component of the Gulf’s digital economy—not solely as an exchange, but as part of the financial architecture of the region,” he remarked. “Our focus lies on institutional collaboration and facilitating practical applications such as cross-border payments, digital remittances, and participation in decentralized finance (DeFi).”
For Binance, the objective is “to build responsibly and contribute to a more interconnected, transparent, and future-ready financial ecosystem.”