A big deal just happened in the Middle East’s financial world. Al Abraaj Restaurants Group, a publicly traded company in Bahrain, announced it’s put some of its money into Bitcoin. This makes them the first publicly listed company in the Middle East to hold Bitcoin as part of its treasury.
A First for the Region
Al Abraaj, a food service company, said they bought Bitcoin for their treasury and plan to create a way for Islamic investors to get involved with Bitcoin in a way that follows Islamic finance rules (Sharia law). They’re calling it a “historic first.” They even bragged on social media about being the first in the Middle East to do this.
Partnering for Success
To make this happen, Al Abraaj teamed up with 10X Capital, a merchant bank in New York. They’re planning to raise more money so Al Abraaj can buy even more Bitcoin. They’re following the lead of companies like MicroStrategy and Metaplanet, who have also invested heavily in Bitcoin. 10X Capital is also creating a huge $710 million fund focused on companies using Bitcoin in their treasuries. They want to list this fund on the Nasdaq.
Following the Leaders
Al Abraaj is hoping that holding Bitcoin will boost its stock price, just like it has for MicroStrategy and Tesla in the US, and Metaplanet in Japan. These companies saw their stock prices go up after investing in Bitcoin.
Islamic Finance Compliance
Al Abraaj emphasized that their Bitcoin investment is done in a way that complies with Islamic finance rules. They believe Bitcoin can be used in a way that’s consistent with Sharia principles, and they want to make it accessible to investors from Saudi Arabia, Kuwait, Qatar, Oman, and other countries.
The Future is Bitcoin?
While the exact amount of Bitcoin Al Abraaj bought wasn’t revealed, they hinted at buying more in the future. They even gave a shout-out to Michael Saylor, a well-known Bitcoin advocate, for inspiring them. At the time of the announcement, Bitcoin was trading at around $102,732. This move is definitely a big step for Bitcoin adoption in the Middle East.
