A company in the Middle East is launching a crypto asset exchange that's backed by diamonds. The Al Kasir Group is hoping the new digital assets can revolutionize the wider industry for precious stones, as Nawied Jabarkhyl reports.

They say diamonds are forever. And here in Dubai, they'll soon be on the block chain too. A local jewellery firm says it's launching crypto assets that are backed by physical diamonds. They'll be available to buy until mid-August when people can start using the digital coins.

AMIT LAKHANPAL, FOUNDER AL KASIR GROUP "Say if a person has invested $250 (USD), first of all, he has got his $250 worth of diamonds. Apart from that, he has 250 worth of assets available on block chain, which he'll be able to utilise post 15th August on our shopping portal to purchase more diamonds."

Unlike a cryptocurrency, the token can't be traded for cash, but is more like a digital reward. Its backers think it can offer a new incentive for diamond trading and have a very ambitious target of opening 1,000 stores worldwide in the coming years.

NAWIED JABARKHYL DUBAI "The cryptocurrency craze is sweeping the Middle East. This is the latest in a series of digital assets to be launched here over the past year or so, as companies look to tap into the growing interest in the likes of Bitcoin."

One firm that's managed that is OneGram. The Dubai-based startup, which was founded last year, is issuing a gold-backed cryptocurrency. It claims to be fully compliant with Islamic law, known as Sharia, which could make it more attractive to Muslim investors.

IBRAHIM MOHAMMED, FOUNDER ONEGRAM "What we did was we took the first form of money, which is physical gold. We took a 1,400-year-old set of rules and regulations and we took the latest technology, which is block chain. We married it all together."

So far, OneGram says it's raised tens of millions of dollars through its initial coin offerings. But, there's still no clear regulation around electronic currencies here. Dubai's financial watchdog has warned people about the dangers of them, while the world's leading Islamic finance body, based in Bahrain, is still deciding whether they're allowed under Sharia law. One of the industry's top advisers is skeptical on digital currencies.

MATTHEW KEEN, ADVISER WORLD GOLD COUNCIL "Does it have to be tokens that have no intrinsic value? ICOs? Limited quantities so that you're creating this idea or rarity value? I think where gold is concerned, it absolutely doesn't. You know gold could be incorporated into this space without any of those gimmicks."

Whether it's with gold or diamonds, companies in this part of the world are using the interest in cryptocurrencies to find new ways to secure investment. That's likely to continue, even as regulators consider how to deal with them. Nawied Jabarkhyl, CGTN, Dubai.