Gaza resident Noor did not know anything about Bitcoin before her make-up boutique was destroyed during the 2021 war with Israel and she started investing in cryptocurrencies to survive.
“I cannot remember the days we had to endure after the war ended except with misery and despair,” Noor tells The National.
“I struggled all day to help my family. We lacked essential supplies that at some point our neighbours donated to us.”
Destitute and with little prospect of finding work in the crowded Gaza Strip, where a 15-year blockade by Israel has left 44 per cent of the Palestinian territory’s 2.3 million residents unemployed, Noor started learning about trading cryptocurrencies.
From having to rely on handouts, the English Literature graduate made enough money to launch an online make-up store.
“My fortunes changed when I learnt to invest in Bitcoin and started selling make-up online,” she says.
Blockaded Gaza turns to solar — in pictures
The blockade of Gaza has not only shut Palestinians off from physical international markets, but also financial ones.
The Palestinian Monetary Authority in Ramallah cannot issue banknotes and Palestinians across the West Bank and Gaza are heavily reliant on handouts and international aid as a financial lifeline.
However, the decentralised, online and apolitical nature of cryptocurrencies has opened a path for Gazans seeking to invest internationally.
This is despite the jolt the sector has experienced with the collapse of crypto exchange FTX, which was headed by founder Sam Bankman-Fried.
FTX's filing for bankruptcy on November 11 has cast a shadow over the wider cryptocurrency sector, undermining confidence.
Unlike traditional currency trading, cryptocurrencies like Bitcoin use blockchain — in effect, a decentralised register of trades — to allow peer-to-peer exchanges of the coins with no regulatory oversight or third parties.
Palestinian "financial subordination to Israeli finance regulations" has been ongoing since before the 1990s, says Dr Tariq Dana, an assistant professor of political economy and conflict and a policy adviser for Al-Shabaka, The Palestinian Policy Network.
"Israel has long had huge power in politics, the economy and financial software,” Dr Dana says.
“From a critical perspective, installing an online, practical and secure financial system under Israel’s control is almost impossible.”
But he adds that an increasing number of Palestinians have turned to cryptocurrencies like Bitcoin as an alternative to traditional financial routes.
The anonymous nature of Bitcoin means it is hard to gauge how many Gazans are investing in cryptocurrencies, but anecdotal evidence suggests numbers have grown rapidly over recent years.
“I believe the decentralised bank status of crypto is encouraging enough for us [Palestinians] to have an income through a safe and freelance platform,” says Kareem, a resident of Gaza who trades in Bitcoin.
“I have been in the industry for almost three years and I feel it [removes] the Israeli limitations on our livelihoods.”
However, the turbulent market is also highly risky.
Since the start of 2022, Bitcoin has lost almost 75 per cent of its value, from over $238,000 per coin to just $63,300. This has wiped away the savings and fortunes of many investors.
Haitham Zuhair, a Palestinian businessman, Bitcoin investor and analyst currently based in Dubai, says investors in cryptocurrencies need to monitor the political, economic and military factors that influence the market worldwide.
“Even with the good advantage of crypto, risks of loss are still omnipresent," he says.
"I am certain the drop in Bitcoin price has cost many traders in Gaza so much, because their initial investments and capital are not as high as one would think.
“Education and experience are essential to persist with crypto as a space of online income and a symbolic tool of economic steadfastness in Palestine. It only takes one wrong call to lose an earth-worth profit in crypto.”
While cryptocurrencies have opened the door for many Palestinians to profit from the global trade, it is not a viable avenue for Palestinian authorities, warns Mohammed Khaled, a business journalist in Gaza City.
“It is impossible to make state-level procedures with Bitcoin,” he says.
“Even with the huge adoption of crypto, Palestine doesn’t possess the political or economic force to designate Bitcoin or any other digital currency as the official medium of finance.”
However, as well as the risks of the market, traders also believe that Israeli authorities are going after their gains.
“The crypto exchange system in Palestine is centralised, meaning that Israel can pause deposits and withdrawals,” says Mr Khaled.
Aftermath of Israel-Hamas fighting — in pictures
Crypto trader Mohammed Awni from Gaza says that while he initially earned a good return, his digital savings have disappeared.
“At the beginning of my tenure in crypto trading, everything seemed excellent and I had an opportunity to have a four-times return for my capital," he says.
"I started planning to get married, only to find out my earnings were gone in the blink of an eye.
“I worked hard to make $6,000. It was my only hope to marry the girl I love. But my dream has been crushed.
"When I sought an explanation from others with similar experiences, it turned out the Israeli military had confiscated my digital wallet for no reason at all.”
Outgoing Israeli Defence Minister Benny Gantz has authorised the military to seize crypto wallets that they believe are being used to fund Hamas — Gaza’s hardline leadership, which is listed as a terrorist group by Israel, the US, the EU and others.
Hamas officials say the campaign of seizures is wider than targeting funding for the group, and that the Israeli military is going after ordinary citizens as well.
Mr Awni says cryptocurrencies have been good business, giving people opportunities and work that would otherwise be closed off in the blockaded strip.
But he says this will not be enough unless there is the “immediate stop of the Israeli full control of the economy, as well as the seizure and confiscation of digital wallets — our people's only means of survival”.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The biog
Hometown: Birchgrove, Sydney Australia
Age: 59
Favourite TV series: Outlander Netflix series
Favourite place in the UAE: Sheikh Zayed Grand Mosque / desert / Louvre Abu Dhabi
Favourite book: Father of our Nation: Collected Quotes of Sheikh Zayed bin Sultan Al Nahyan
Thing you will miss most about the UAE: My friends and family, Formula 1, having Friday's off, desert adventures, and Arabic culture and people
Dhadak
Director: Shashank Khaitan
Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana
Stars: 3
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
The%20specs
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
COMPANY PROFILE
Name: Mamo
Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua
Based: Dubai, UAE
Number of employees: 28
Sector: Financial services
Investment: $9.5m
Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors.
Bharat
Director: Ali Abbas Zafar
Starring: Salman Khan, Katrina Kaif, Sunil Grover
Rating: 2.5 out of 5 stars
The%20specs
%3Cp%3E%3Cstrong%3EPowertrain%3A%20%3C%2Fstrong%3ESingle%20electric%20motor%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E201hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E310Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20auto%0D%3Cbr%3E%3Cstrong%3EBattery%3A%20%3C%2Fstrong%3E53kWh%20lithium-ion%20battery%20pack%20(GS%20base%20model)%3B%2070kWh%20battery%20pack%20(GF)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E350km%20(GS)%3B%20480km%20(GF)%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C900%20(GS)%3B%20Dh149%2C000%20(GF)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
The specs
Engine: 4-litre twin-turbo V8
Transmission: nine-speed
Power: 542bhp
Torque: 700Nm
Price: Dh848,000
On sale: now
COMPANY%20PROFILE
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SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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Results
5pm: Maiden (PA) Dh80,000 (Turf) 1,000mm, Winners: Mumayaza, Fabrice Veron (jockey), Eric Lemartinel (trainer)
5.30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 2,200m, Winners: Sharkh, Pat Cosgrave, Helal Al Alawi
6pm: The President’s Cup Prep - Conditions (PA) Dh100,000 (T) 2,200m, Winner: Somoud, Richard Mullen, Jean de Roualle
6.30pm: Handicap (PA) Dh90,000 (T) 1,600m, Winner: Harrab, Ryan Curatolo, Jean de Roualle
7pm: Abu Dhabi Equestrian Gold Cup - Prestige (PA) Dh125,000 (T) 1,600m, Winner: Hameem, Adrie de Vries, Abdallah Al Hammadi
7.30pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m, Winner: AF Alwajel, Tadhg O’Shea, Ernst Oertel
8pm: Maiden (TB) Dh80,000 (T) 1,400m, Winner: Nibras Passion, Bernardo Pinheiro, Ismail Mohammed