- CEO Talal Ibrahim al-Maiman cites lack of widespread use in transactions as the main reason for investment hesitancy.
- Firm upholds Warren Buffett’s investment principles, focusing on stable, predictable assets over volatile cryptocurrencies.
Kingdom Holding Company, steered by Saudi Arabian Prince Alwaleed Bin Talal, has confirmed it will not pursue investments in cryptocurrencies in the near future. This decision , articulated by CEO Talal Ibrahim al-Maiman at the World Economic Forum in Davos, reflects the firm’s strategy of cautious engagement with emerging financial technologies.
Al-Maiman clarified that the primary reason for the firm’s reluctance is the limited acceptance of cryptocurrencies like Bitcoin as a viable medium for commercial transactions. Despite the growing intrigue around blockchain technology and crypto assets, the practical use of these currencies in everyday purchases remains minimal, influencing the investment giant’s stance.
Kingdom Holding manages a robust portfolio valued at approximately $13.6 billion, diversified across multiple sectors such as finance, hospitality, health care, and real estate. The firm’s investment philosophy, mirroring that of noted investor Warren Buffett , prioritizes assets with stable and predictable returns over those perceived as speculative or volatile.
“We support Mr. Buffett’s viewpoint that one should invest in what one can use for purchases” Al-Maiman explained, reinforcing the firm’s position on cryptocurrency.
The clarification comes amidst rampant speculation on social media about potential shifts in the investment strategies of Saudi elites, particularly following regulatory adjustments in the U.S. that could favor the crypto market.
“Since cryptocurrencies have not yet become a mainstream payment method, they do not meet our investment criteria.”
Prince Alwaleed had previously expressed skepticism towards Bitcoin, famously predicting its eventual collapse due to its speculative nature in 2017.
This consistent stance underscores Kingdom Holding’s approach to investment, focusing on financial safety and asset reliability over high-risk market plays. By aligning its strategy with established financial wisdom , the company aims to safeguard its holdings against the unpredictable swings often associated with cryptocurrency markets.
