Gulf tech firms turn to Hong Kong and Singapore as Iran war grinds on

Gulf tech firms turn to Hong Kong and Singapore as Iran war grinds on
Paul Bratby had already drawn up plans for expanding to Hong Kong when war broke out in the Middle East earlier this year.
But the founder of xBratAI, a Dubai-based AI-powered trading signals platform, soon brought that timeline forward as the Iran conflict dragged on and widened in scope.

“Our Hong Kong entity had been scheduled for a few years later, but we established it in early 2026,” he said.

Bratby is not alone in looking east. As missiles continue to target Gulf capitals and shipping lanes, digital businesses and investors are increasingly setting up shop in Hong Kong and Singapore.

“The war has influenced the pace of expansion into East Asian hubs more than it has redrawn the map. Firms that can relocate cheaply have done so,” Bratby said, adding: “Hong Kong and Singapore are now treated as primary growth markets.”

For many, these new Asian bases supplement established operations in Abu Dhabi and Dubai, creating what Anndy Lian, a Singapore-based adviser to governments on blockchain and information technology, calls a “dual-hub” model.

“We are not seeing an outright exodus from the Gulf, but we are witnessing an accelerated shift towards proactive geopolitical hedging,” he said. “Major digital and tech enterprises are no longer content with relying on a single operational anchor.”

Ali Moosa, executive vice-chairman of Bahrain-headquartered Singapore Gulf Bank, said the conflict had accelerated Gulf businesses’ use of Asian financial hubs.

“Business continues during uncertainty,” he said. “Companies still need to pay suppliers, buy equipment, meet payroll and complete projects.”

In the long term, greater access to Asian capital and investment could support growth in the Gulf, Moosa said.

The closer the Gulf becomes to Asia, the more capital Gulf businesses can access and the more opportunities they can pursue- Ali Moosa, Singapore Gulf Bank

“The closer the Gulf becomes to Asia, the more capital Gulf businesses can access and the more opportunities they can pursue,” he said, adding he expected “many of these relationships to continue after the immediate disruption ends”.

The disruption could last for some time, however, as the conflict continues to widen.

At the weekend, Yemen’s Iran-backed Houthis claimed missile and drone strikes on “sensitive” sites in the Saudi capital Riyadh and on an Aramco facility in the Red Sea oil export hub of Yanbu.

Britain has agreed to help Saudi Arabia’s military counter the Houthis, whose attacks have increasingly threatened shipping near the Bab el-Mandeb chokepoint.

Meanwhile, Singaporean financial institutions have been setting up cross-border digital networks and multicurrency settlement methods to carry Gulf capital into a region undergoing an unprecedented infrastructure boom, driven by the race for AI data centre capacity.

Building AI infrastructure was enormously capital intensive, Lian said, pointing to the huge amounts of upfront investment required for high-voltage power grids, industrial cooling systems and the like.

“Middle Eastern institutional capital is uniquely suited to this demand,” he said. “Gulf investors possess deep familiarity with massive, energy-intensive infrastructure projects, and they are deploying liquidity directly into Southeast Asia’s digital backbone.”

The Asia-Pacific’s financial services industry is forecast to nearly double in value to US$4.8 trillion by 2035, according to a Deloitte report published last month – overtaking the United States, whose industry is projected to reach US$4.3 trillion over the same period.

Gulf sovereign wealth funds were hungry for exposure to Asia’s consumer digital economy and industrial supply chains, and Asian fund managers and technology consortiums were more than happy to oblige, Lian said.

Iranian attacks on data centres in Bahrain and the United Arab Emirates led to service outages earlier in the conflict, fuelling a surge of interest in Southeast Asian alternatives, said Raj Kapoor, founder of the India Blockchain Alliance.

This had “introduced something that technology companies historically treated as an unlikely tail risk”, he said.

Even so, Kapoor said the Gulf would remain central to the global AI buildout as tech companies had already sunk billions of US dollars into the region, with government backing and it “therefore makes little sense” for them “simply to abandon those markets”.

“So I see this mainly as diversification rather than relocation,” he said.

 

 

Source: https://www.scmp.com/week-asia/economics/article/3368387/gulf-tech-firms-turn-hong-kong-and-singapore-iran-war-grinds

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author. The latest book is Web4: The Age of Autonomous Intelligence.

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Pakistani workers in Gulf turn to stablecoins for remittances amid Iran war concerns: report

Pakistani workers in Gulf turn to stablecoins for remittances amid Iran war concerns: report

Migrant workers from South Asia employed in Gulf countries are increasingly turning to stablecoins as an alternative channel for sending money home amid concerns that the US-Iran conflict could disrupt traditional remittance systems linked to the dollar, according to a report by SCMP.

Industry analysts said fears surrounding sanctions, financial restrictions and disruptions in the Strait of Hormuz have pushed some workers toward digital tokens such as USDT and USDC for cross-border transfers.

Millions of workers from Pakistan, India, Bangladesh and Sri Lanka rely on Gulf economies for employment, while remittances remain a major source of foreign exchange for several South Asian countries.

According to the State Bank of Pakistan, workers’ remittances stood at $3.54 billion in April 2026, showing an 11% increase compared to the same month last year, although inflows declined 8% on a monthly basis from March. During the first 10 months of FY26, total remittances reached $33.86 billion, up 8.5% year-on-year.

Analysts, however, pointed to growing dependence on Gulf economies for remittance inflows. Data showed that Saudi Arabia, the UAE and other Gulf Cooperation Council countries collectively accounted for more than $18 billion during 10MFY26, representing more than half of Pakistan’s total remittance receipts.

Saudi Arabia remained the largest source with inflows of $7.93 billion, followed by the UAE at $7 billion.

Experts warned that the concentration of remittances from a single region leaves Pakistan vulnerable to external disruptions, particularly as geopolitical tensions in the Gulf continue to rise amid fears of wider regional conflict.

According to the Global Settlement Network, remittances account for between 3% and 5% of GDP in multiple emerging economies, while the share reaches around 10% in Nepal.

Singapore-based blockchain adviser Anndy Lian said there had been a gradual shift among South Asian migrant workers toward stablecoins following the Iran conflict, although traditional banking and licensed exchange operators still dominate remittance flows.

Lian estimated that stablecoins currently account for around 3% to 4% of remittances sent by Gulf-based workers.

He said one reason for the growing interest in USDT was that it often trades at a premium of around 4% to 5% in markets such as India compared to official dollar exchange rates, allowing recipients to obtain higher value on transfers.

The report said concerns over remittance channels intensified after the United States warned against toll payments to Iran for ship passage through the Strait of Hormuz, which has faced disruptions during the conflict.

According to Raj Kapoor, president of the India Blockchain Alliance, the conflict has also affected treasury operations and financial activities of global banks operating in the Gulf region, creating additional pressure on conventional remittance systems.

Several Gulf states, including the UAE, Bahrain and Saudi Arabia, have introduced regulatory frameworks in recent years allowing stablecoins to operate within parts of their financial systems.

Ryan Kirkley, co-founder and co-chief executive officer of Global Settlement Network, said the conflict had affected not only energy markets and dollar liquidity but also remittance flows relied upon by millions of migrant workers and their families.

India received around $125 billion in remittances last year, with Gulf countries contributing roughly one-third of the total, according to the report.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author. The latest book is Web4: The Age of Autonomous Intelligence.

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Iran war pushes Asia’s Gulf migrants to use stablecoins for remittances

Iran war pushes Asia’s Gulf migrants to use stablecoins for remittances
Asian migrant workers in the Gulf are testing stablecoins as a backup channel for sending money home, as the Iran war heightens fears that the risk of US sanctions could disrupt remittances that millions of families and several Asian economies rely on.

Remittances from these workers account for 3 per cent to 5 per cent of gross domestic product in several emerging markets – in Nepal, it is as high as 10 per cent, according to data from the Global Settlement Network.

Concerns over remittance flows have escalated after the US warned against toll payments to Iran for ship passage through the Strait of Hormuz, which has largely been blocked amid the ongoing conflict between the two countries.

“There has been a quiet but noticeable informal pivot among South Asian migrant workers, including a significant number from India, towards digital tokens such as stablecoins in the period following the Iran conflict,” said Anndy Lian, a Singapore-based adviser to governments on blockchain and information technology.

“Rather than routing everything through traditional dollar-linked banking channels, a slice of remittances is now moving via instruments like USDT,” he said, referring to the Tether stablecoin backed by the US dollar.

A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset, which could be a fiat currency or other assets, such as gold.

Stablecoins currently account for about 3 to 4 per cent of overall remittances of Gulf-based workers, according to Lian, suggesting that these workers still mostly prefer to transfer money through banks and licensed operators.

Millions of people from India, Sri Lanka, Pakistan, Bangladesh and other countries have worked in the oil-rich Middle East for years. However, their job uncertainties have increased in recent months as the Iran war entangled other Gulf states.

Lian said a key attraction of the widely used USDT was that it commanded a higher value by about 4 to 5 per cent in markets such as India, compared with the official exchange rate for the US dollar, allowing recipients to get more value.

The prospect of sanctions related to the Iran war has raised fears about disruptions to the dollar-based monetary transfers through traditional modes, although there is no sign that Washington is planning to block legitimate remittances, according to Lian.

Several Gulf countries, such as the UAE, Bahrain and Saudi Arabia, have introduced regulations in recent years to allow stablecoins in their financial systems.

Workers in the Middle East are increasingly turning to stablecoins for remittances, given that such transfers are faster than traditional banking systems, according to Lian.

“The shift is real, but incremental, and is concentrated among the more tech-comfortable, urban-linked segment of the diaspora rather than the broader labour corridors,” he said.

Raj Kapoor, president of the India Blockchain Alliance, said global banks had tightened their Gulf operations due to the Iran war, which had affected their treasury and other functions that underpinned remittance flows.

Stablecoins, particularly the USDT and USDC, have filled the gap for financial settlements in the region, according to Kapoor.

“The Iran war has functioned less as a cause and more as a powerful accelerant of a shift that was already structurally under way,” he added.

Ryan Kirkley, co-founder and co-CEO of Global Settlement Network, said the Iran war had caused disruption not only to energy supplies and dollar liquidity but also remittances.

Countries across South Asia and Southeast Asia are reliant on these monetary transfers, with India alone having received US$125 billion in remittances last year and Gulf nations contributing to a third of the figure, according to Kirkley.

Given their significance, compliance standards for stablecoins and tokenised payments should be enhanced and for migrant workers to have this option to send their money home amid the Iran war, Kirkley said.

“If a Gulf bank pulls back on dollar clearing or a UAE exchange house tightens onboarding because of secondary-sanctions exposure, the first thing to feel it is not the oil tanker, it is the construction worker in [the city of] Sharjah trying to send 2,000 UAE dirhams [US$545] home,” he said.

 

Source: https://www.scmp.com/week-asia/economics/article/3353456/iran-war-pushes-asias-gulf-migrants-use-stablecoins-remittances

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author. The latest book is Web4: The Age of Autonomous Intelligence.

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