LONDON: Dogecoin, a cryptocurrency created as a joke in 2013, has seen its value leap in recent days, after humorous messages about it from tech billionaire Elon Musk.
The price of dogecoin, which has traded at just fractions of a cent for most of its existence, surged last week amid a buying frenzy that surrounded the GameStop saga.
Then Musk’s messages on the topic, which included him dubbing it “the people’s crypto” on Thursday, sent its value soaring overnight by around 50 percent.
The Tesla and SpaceX founder followed up the endorsement by posting a doctored image from the Lion King in which he lifts the cryptocurrency’s mascot image of a Shiba Inu dog above his head in triumph.
Earlier in the week the entrepreneur had said on Clubhouse — a social network accessible only by invitation — that his messages on dogecoin “are really just meant to be jokes.”
His seemingly ironic humor about the cryptocurrency resembles the tone of messages on online platform Reddit’s WallStreetBets forum.
A group of amateur investors sharing gifs and memes there joined forces last week against big hedge funds betting against video game store GameStop, causing its price to surge by more than 400 percent before falling sharply.
Despite his prior admission that his comments were jokes, Musk’s tweets were enough to cause dogecoin to spike above 5 cents, before it fell back Friday to trade at 4.519 cents at 18:30 GMT, according to website CoinMarketCap.
At this price, Dogecoin’s market capitalization is $5.8 billion dollars, placing it 15th in the cryptocurrency league table.
“Anything Musk tweets about shoots higher because he has such a strong following both on social media and as a businessman,” said Neil Wilson, analyst for Markets.com.
Last month Musk’s messages helped spur a brief boom in the better known cryptocurrency bitcoin.
Founded in 2013 by a pair of software workers, dogecoin’s creators have said it was intended as an ironic response to two big Internet phenomena that year.
They were cryptocurrencies, which had multiplied in the wake of bitcoin, and montages of a Shiba Inu dog image.
“From ‘that seems like it’s funny’ to actually doing it took about three hours,” Billy Markus, a video game-obsessed software engineer at IBM, told the news website CNET.
“It’s almost trivial to create a new cryptocurrency.”
However, users of Reddit forums began using dogecoin, due to its previously extremely low prices, to welcome comments from posters.
After briefly climbing above a cent in 2017 — when market interest was boosting cryptocurrencies — the price of Dogecoin had subsided.
It crossed the one cent threshold at the beginning of the year, and has been on the rise ever since.
Jokes abound as Musk helps fuel rise of crypto dogecoin
https://arab.news/5jt7g
Jokes abound as Musk helps fuel rise of crypto dogecoin
- The price of dogecoin surged last week amid a buying frenzy that surrounded the GameStop saga
- Musk said his messages on dogecoin “are really just meant to be jokes”
Saudi Arabia sees 73% surge in e-commerce sales using MADA cards
RIYADH: Saudi e-commerce sales via MADA cards surged 73.4 percent year on year in March to a record SR27.55 billion ($7.34 billion), reflecting rapid growth in the Kingdom’s digital payment ecosystem.
According to the Saudi Central Bank, also known as SAMA, online transactions using the national card network reached 147.6 million during the month, up 54.5 percent compared to March 2024.
The figures reflect transactions completed through websites, mobile apps, and e-wallets linked to MADA, and do not include those carried out using Visa, MasterCard, or other international networks.
MADA — the Kingdom’s domestic debit card network — underpins a growing portion of Saudi Arabia’s non-cash economy by enabling secure, contactless payments through NFC technology both online and at retail locations. This growth in digital commerce reflects rising consumer trust, expanding fintech ecosystems, and national investments in financial technology integration.
In a step toward digital expansion, SAMA signed an agreement in April with Google to introduce Google Pay in Saudi Arabia using the MADA infrastructure. The integration, expected to launch later in the year, will allow users to add and manage their MADA-linked cards within Google Wallet, offering seamless and secure transactions across physical stores, mobile apps, and websites.
According to SAMA, this move is part of a broader push to establish a robust digital payments infrastructure and reduce the country’s dependence on cash transactions.
The central bank’s efforts also include licensing new fintech players such as Barq, launching e-wallet platforms, and facilitating the operational launch of STC Bank, all aimed at bolstering financial inclusion and consumer convenience.
Earlier this year, the eSAMA portal also entered trial phase, providing digital access to a range of central bank services.
Alongside e-commerce growth, point-of-sale transactions using MADA also expanded, reaching SR65.67 billion in March — a 10.02 percent increase year on year.
E-commerce sales using MADA cards were equivalent to 42 percent of POS transaction value in March, up from 27 percent a year earlier — underscoring the faster growth of online spending compared to in-store purchases.
POS transactions — which cover physical card usage at retail stores, restaurants, gas stations, and service outlets — do remain a critical pillar of everyday consumer spending.
With Saudi Arabia aiming for over 70 percent of all transactions to be non-cash by 2025, the latest data signals that the Kingdom is fast approaching its digital transformation benchmarks — with MADA at the heart of this evolution.
UAE M1 money supply rises 1.8% in February amid broad liquidity gains
RIYADH: The UAE’s most liquid form of money supply, M1, climbed 1.8 percent in February to 982.9 billion dirhams ($267.6 billion), as both cash in circulation and demand deposits rose, official data showed.
According to the latest data from the Central Bank of the UAE, the monthly increase was driven by a 13.5 billion dirham gain in monetary deposits and a 4.1 billion dirham rise in currency outside banks.
M1 — comprising physical currency and current account balances — is a key measure of liquidity immediately available for household and business spending.
The pickup in M1 comes amid a broader expansion in liquidity across the UAE’s financial system, reflecting stable credit conditions and sustained economic activity. The UAE has been supported by robust non-oil growth, rising investment, and steady financial sector performance heading into 2025.
Broader money aggregates also advanced, with M2 — which includes savings and time deposits in addition to M1 — rising 1.8 percent to 2.36 trillion dirhams, supported by a 25 billion dirham increase in quasi-monetary deposits.
M3, which includes M2 and government deposits, grew 0.8 percent to 2.81 trillion dirhams. The rise was primarily driven by the M2 expansion, offsetting a 19 billion dirham decline in government deposits.
The UAE’s monetary base rose 3.1 percent to 816.6 billion dirhams. The increase was supported by an 11.4 percent rise in overnight deposits and current accounts held by banks and financial institutions at the central bank.
Monetary bills and Islamic certificates of deposit rose 6.2 percent, while currency issuance increased 3.4 percent. These gains outweighed a 6.1 percent drop in reserve account balances.
Banking sector indicators also showed positive momentum, with the country’s gross banking assets, including bankers’ acceptances, rising 1.6 percent to 4.63 trillion dirhams. Gross credit increased by 0.9 percent to 2.21 trillion dirhams, driven by a 17.1 billion dirham rise in foreign credit and a 1.7 billion dirham gain in domestic credit.
Within domestic credit, lending to the private sector rose 0.7 percent, and loans to non-banking financial institutions jumped 5.2 percent. These increases offset a 2 percent decline in credit to government-related entities and a 1.4 percent drop in lending to the government sector.
The country’s total bank deposits climbed by 1.2 percent, reaching 2.87 trillion dirhams at the end of February, up from 2.84 trillion dirhams in January.
This growth was driven by a 0.8 percent rise in resident deposits and a 5.1 percent increase in non-resident deposits.
The increase in resident deposits was attributed to higher deposits from government-related entities by 3.8 percent, private sector by 1.4 percent, and non-banking financial institutions by 5.6 percent, which outweighed a 4 percent decline in government sector deposits.
GCC central banks hold interest rates steady for 3rd time following Fed’s move
RIYADH: Gulf Cooperation Council central banks have kept interest rates steady for the third consecutive period, mirroring the US Federal Reserve’s decision to hold its benchmark rate between 4.25 percent and 4.5 percent.
As most currencies in the region are pegged to the US dollar, monetary policy follows the decisions taken in Washington, with policymakers opting to lock the rate at the level it has been since December.
The freeze comes amid global uncertainty caused by the ongoing trade war, a slowing of economic growth in the US, and unstable inflation trends, according to a statement by the Federal Reserve.
The country’s gross domestic product fell 0.3 percent in the first quarter as a result of slower consumer and government spending and a surge in imports ahead of the tariffs.
The newly released Fed statement said: “In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”
This decision implies that the Saudi Central Bank, also known as SAMA, will maintain its repo rates at the current level of 5 percent.
The UAE central bank also announced that it has decided to maintain the base rate applicable to the Overnight Deposit Facility at 4.40 percent.
Qatar, Kuwait, and Oman, as well as Bahrain, also mirrored the Fed’s move.
Repo rates, which represent a form of short-term borrowing primarily involving government securities, underscore the close economic ties and financial dynamics between the GCC countries and the global economic landscape, particularly the US.
“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals,” the Federal Reserve’s statement said.
It added: “The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
In April, Fitch Ratings said in a report that Gulf banks face minimal direct impact from new US tariffs but remain exposed to broader risks stemming from weaker oil prices and slowing global growth.
The agency noted at the time that most GCC exports to the US are hydrocarbons, which are exempt from the latest tariffs. Non-oil exports, such as aluminum and steel, which are subject to 10 percent or 25 percent duties, account for only a small share of the trade basket, limiting direct exposure for regional economies and their banking sectors.
GCC market capitalization surpasses $4.2tn, bloc’s secretary-general reveals
RIYADH: Capital markets across the Gulf Cooperation Council surpassed a combined capitalization of $4.2 trillion by the end of 2024, highlighting strong regional economies and sustained investor confidence.
The figure was revealed by Jasem Al-Budaiwi, secretary-general of the GCC, during his address at the third edition of the “Gulf Smart Investor Award” ceremony held in Riyadh on May 7.
In his remarks, Al-Budaiwi noted that GCC markets witnessed a total of 336.3 billion shares traded in 2024, marking a 20.9 percent increase compared to the previous year.
The total value of traded shares reached $682.2 billion, reflecting an annual growth of 28.4 percent.
These gains, he underlined, underscore the confidence of both domestic and international investors and reinforce the importance of continued efforts to build financial awareness and strengthen investor education.
Al-Budaiwi commended Saudi Arabia for hosting the awards and supporting the GCC’s broader economic agenda.
“His Excellency the secretary-general pointed out that amidst the astonishing acceleration and profound transformations taking place in financial markets globally and regionally, and in light of the GCC countries’ openness to the global economy, financial literacy is no longer merely marginal knowledge or an intellectual luxury,” an official release stated.
This positive momentum in GCC markets aligns with broader regional trends.
In the first quarter of 2025, stock markets across the Middle East and North Africa saw solid gains, with the Arab Monetary Fund’s Composite Index — tracking 16 Arab exchanges— rising 4.37 percent year-on-year.
The index also posted a 1.55 percent increase on a quarterly basis, reflecting continued investor confidence despite global monetary policy shifts and ongoing geopolitical pressures.
During his speech, Al-Budaiwi highlighted the central role of financial literacy in navigating increasingly complex and fast-evolving global financial markets, positioning it as a key factor in achieving financial security and long-term economic sustainability across the region.
The event, part of the GCC-wide investment literacy initiative known as Mulim, was attended by high-level officials, including Saudi Capital Market Authority Chairman Mohammed El-Kuwaiz.
Al-Budaiwi emphasized that the award serves not only as a recognition of individual excellence but also as a broader message advocating the role of financial knowledge, strategic planning, and a sound regulatory environment in fostering informed investment decisions.
He commended the efforts of the Saudi Capital Market Authority and partner institutions for their role in supporting initiatives that contribute to financial knowledge across GCC societies.
Earlier this week an analysis by S&P Global revealed the market capitalization of the Kingdom’s Tadawul All Share Index reached $2.7 trillion at the end of 2024, representing a 10-year rise of 463 percent.
The credit rating agency’s report said the stock market is expected to play a crucial role in materializing the Kingdom’s economic transformation goals outlined in Saudi Arabia’s Vision 2030 initiative.
Fitch affirms Jordan at ‘BB-’ with stable outlook as reform momentum builds
RIYADH: Jordan’s long-term foreign-currency issuer default rating has been affirmed at “BB-” with a stable outlook by Fitch, citing the country’s macroeconomic stability and progress in fiscal and economic reforms.
The US-based credit rating agency added that the grade, along with the stable outlook, also reflects Jordan’s resilient financing sources — including a liquid banking sector, a robust public pension fund, and continued international support.
Despite the stable outlook, Jordan’s credit rating remains lower than that of several other countries in the region. In February, Fitch affirmed Saudi Arabia’s IDR at “A+” with a stable outlook, while the UAE was rated “AA-.”
In its latest report, Fitch stated: “The ratings are constrained by high government debt, moderate growth, risks stemming from domestic and regional politics, and current account deficits and net external debt that are higher than rating peer.”
According to the agency, a “BB” rating signifies elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time, although some business or financial flexibility exists to support the servicing of financial commitments.
The report noted that Jordan’s government remains committed to advancing its three-pillar reforms across the economic, public administration, and political sectors, despite external pressures.
Fitch added that the pace of reform will continue to be influenced by the need to preserve social stability, resistance from vested interests, and institutional capacity constraints.
Jordan’s gross domestic product expanded by 2.5 percent in 2024, and Fitch projects growth of 2.7 percent in 2025 and 2.8 percent in 2026.
“This reflects our assumptions of headwinds from weaker global growth, partly balanced by recovery in tourism from Europe following an easing of regional conflicts. Iraq will remain a dynamic export market for Jordan and nascent trade with Syria could add further impetus,” the report said.
In April, the International Monetary Fund offered a similar projection, forecasting 2.7 percent growth in 2025, driven by a rebound in tourism and improved domestic demand.
Fitch also noted that the imposition of US tariffs and the resulting uncertainty will slow global demand, which is expected to impact demand for Jordanian exports.
Exports to the US accounted for 26 percent of Jordan’s total in 2024, including 27 percent from precious metals and stones — categories that are exempt from duties.
Apparel made up 56 percent of Jordan’s exports to the US, and this sector faces the risk of a 20 percent tariff.
According to Fitch, the general government deficit stabilized at 2.4 percent of GDP in 2024, amid higher interest payments and lower capital expenditure.
The agency projects the deficit will rise to 2.6 percent in both 2025 and 2026, as continued spending restraint is offset by growing interest costs.
The report further warned that persistent geopolitical risks could negatively impact Jordan’s credit profile, even as it benefits from strong multilateral and bilateral support.
“As tensions between Israel and Iran remain heightened and the war in Gaza continues, geopolitical risks remain high. Uncertainty remains regarding the course and duration of the conflict,” said Fitch.
Other factors that could weigh on Jordan’s credit rating include a weakening of support from external partners and a marked increase in external indebtedness.
Jordan is on track to receive disbursements under its four-year, $1.2 billion Extended Fund Facility with the IMF.
It has also entered into a new program with the EU, which includes €1 billion ($1.07 billion) in macro-financial assistance.
Fitch identified several factors that could lead to a rating upgrade, including a sustained decline in government debt as a share of GDP and a return to growth levels above pre-pandemic averages, resulting in lower unemployment.
