The co-founder of Stobox, a blockchain-based platform designed to tokenize real-world assets (RWAs), during his participation at the Web Summit in Qatar spoke with Cryptopolitan on how the MENA region will become the epicenter of tokenization expecting 10-20 percent ($3- $6 trillion) of the projected $30 trillion tokenization market in 2030 to come from the Middle East. Stobox, was one of the 29 blockchain firms that have been accepted into Qatar Financial Centre’s Digital Assets Lab. Ross Shemeliak, the co-founder of the firm, noted that tokenization is taking the world and MENA region by storm. Tokenization momentum growing in MENA Shemeliak believes that the momentum is especially growing in the MENA region. He explains that MENA is the diamond for tokenization given it has a lot of growing assets, as well as being a reputable regulatory jurisdiction for tokenization. He references the regulations that have taken place in UAE within ADGM and VARA as well as in Qatar with QFC and Qatar Central Bank with its security token laws, and even in Bahrain with the tokenization regulations set by the Central Bank of Bahrain. As such he explains, “The MENA region is taking on a big narrative when it comes to technology and the promotion of this technology. There is a lot of support from the government to local startups with funding, and there is a lot of consumer demand especially when it comes to real estate.” He also notes that the MENA region is affordable because of its low taxations making it an even better place for tokenization. More than 10 percent of Stobox’s 100 clients from MENA Already Stobox which has been in the tokenization space for the last 7 years, has more than 100 clients globally and has tokenized more the $500 million worth of assets. Shemeliak clarified that more than 10 percent of Stobox clients come from the MENA region showcasing the growth in assets and adoption. He also predicts that in 2030 as consultants such as PWC, Boston Consulting Groups, and others foresee a tokenization market worth $30 trillion, 10-20 percent of this market will be from the Middle East and North Africa. Shemeliak states, “50% of our clients are from the real estate sector, 30% from energy, and 20% from the mining sector including diamonds.” He adds that even the MENA manufacturing industry is turning to tokenization. Given that the GCC region has a large expat population this also spurs the opportunities that tokenization can avail. Citizens of Pakistan, India, and other countries who want to invest in real estate ventures, and other sectors, will be able to do so, breaking down the barriers of cost and regulations. Shemeliak believes that there is an opportunity for citizens of various nationalities and economic status to participate in tokenized offerings with amounts as small as $100. He explains, “The benefits are not only for the businesses that are tokenizing but also for investors. Prior to tokenization most investors couldn’t participated in equities or securities offerings of private companies, but with tokenization it unlocks more possibilities.” MENA more proactive on tokenization than Europe Stobox has been making efforts to accelerate the tokenization market in the Middle East. Recently, it joined Qatar Financial Center Digital Assets Lab, as part of its expansion plans to the MENA region. Shemeliak explained that at the lab, Stobox introduced tokenization methodologies including compliance. He stated, “We are on the first to complete this and put in frameworks for businesses with what we call data rich approach, given it the real importance is how we connect tokens with real world assets. Because when buying assets through blockchain owners needed to see all the information, even legal through embedded data.” At QFC Stobox is offering turnkey tokenization offerings that include not only the technical solutions to enterprises and financial institutions in Qatar offering financial service providers APIs so they could offer tokenization services to their clients. Stobox biggest client in the Middle East is in Qatar Even though Stobox has more than 10 clients across the Middle East, its biggest client resides in Qatar. Stobox is working with Qatar-based ICM Capital tokenizing the securities of one of the biggest shrimp farms on the planet situated in Qatar’ desert. Stobox also has 10 clients in the UAE some in real estate, the film industry, and manufacturing, as well as in Egypt where the client is in manufacturing, and finally a client in Bahrain. Currently, Stobox in Qatar is working towards its license which will take three months to receive, and hopes to take tokenization to the streets because as Shemeliak explains, “We want to provide SMEs, and enterprises tokenization solutions that the Black Rock’s of the world are utilizing but for small businesses. We want to bring Nasdaq to your mobile phone because we believe in community driven businesses.” According to Stobox Co-Founder, Qatar has already developed security token regulations, with a proactive governmental adoption stance, as well as supported through fundraising and technical the startup ecosystem. Stobox will first work to receive the technology license in Qatar and then eventually upgrade it with token exchange. Stobox Co-Founder believes that the next stage of the industry will be an intersection of centralized finance or exchanges with decentralized. Stobox has developed a solution for offering a DeFi-compliant exchange that offers liquidity and compliance in terms of KYC and AML. Shemeliak adds, “We have brought together Web2 integrated with Web3 where potential investors just need an email and password to get onboarded, attached to a non-custodial Web3 wallet but with a simplified onboarding process. Customers will eventually be using blockchain without even knowing they are.” The entrance of Stobox into the MENA region comes as the UAE becomes an emerging hub for real-world asset tokenization whereas of February 3rd, 2025, on-chain RWAs have reached $17 billion. While In January, Mantra signed a $1 billion deal with DAMAC Group to tokenize their assets. It also comes as SettleMint pilots its private share tokenization of QFC, with more tokenization projects on the way with The Hashgraph Association in Qatar as well. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More
