Dubai Pioneers Tokenized Real Estate in MENA Region
Dubai has launched the first licensed tokenized real estate project in the Middle East and North Africa (MENA) region, signaling strong interest in real-world asset tokenization within one of the world’s most active crypto hubs.
The project is a collaboration between the Dubai Land Department (DLD), the Central Bank of the United Arab Emirates, and the Dubai Future Foundation, as announced by the Dubai government.
Tokens will be tradeable on the newly launched Prypco Mint platform, with Zand Digital Bank appointed as the pilot phase banking partner.
Dubai’s Virtual Assets Regulatory Authority (VARA) updated its rules on May 19 to include real-world asset (RWA) tokenization, allowing such tokens to be traded on secondary markets.
The project enables individual investors to purchase tokenized shares in “ready-to-own properties in Dubai,” with investments starting at 2,000 Emirati dirham (about $545).
This fractional model enables access to premium real estate without needing to buy a whole unit, offering benefits like potential rental income, appreciation, and simplified transfers through blockchain technology.
During the pilot phase, transactions will be settled in dirham (AED) only, with no cryptocurrency use.
The program is initially available to UAE ID holders, with plans to expand globally.
The DLD and VARA previously agreed in April to integrate Dubai’s real estate registry with property tokenization, aiming to attract global investors and enhance liquidity in the real estate market.
The project was first announced in March.
The United Arab Emirates, and particularly Dubai, has become a sought-after destination for crypto entrepreneurs.
In May, Dubai partnered with Crypto.com to enable crypto payments for government services.
The real estate tokenization market is expected to reach a $19.4 billion valuation by 2033, growing at a compound annual rate of 21%, according to Custom Market Insights.
The market includes residential, commercial, and industrial properties.
Companies such as RealT and Metlabs specialize in tokenizing real estate, although many others have faced challenges, primarily due to regulatory complexities.
Sources:
https://www.custommarketinsights.com/report/real-estate-tokenization-market/
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