Dubai has unveiled the Middle East and North Africa’s (MENA) first licensed tokenized real estate initiative, marking a significant advancement in the region’s adoption of blockchain technology in the property sector. This pioneering project is a collaborative effort involving the Dubai Land Department (DLD), the Central Bank of the United Arab Emirates, and the Dubai Future Foundation. The tokenized properties will be available for trading on the newly introduced “Prypco Mint” platform, with Zand Digital Bank appointed to oversee the pilot phase.
The initiative allows individual investors to purchase tokenized shares of ready-to-own properties in Dubai, with entry investments starting at 2,000 Emirati dirhams (approximately $545). During the pilot phase, all transactions will be conducted in the local currency, dirham (AED), without the use of cryptocurrencies. Initially, participation is limited to holders of UAE identification, but there are plans to expand access to international investors in the future.
This development follows the Dubai Virtual Assets Regulatory Authority’s (VARA) recent update to its regulations on May 19, which now encompass real-world asset (RWA) tokenization. The updated rules permit such tokens to be traded on secondary markets, enhancing liquidity and investor accessibility.
In April, the DLD and VARA agreed to integrate Dubai’s real estate registry with property tokenization efforts, aiming to attract global investors and increase market liquidity. This project is part of Dubai’s broader strategy to position itself as a leading hub for digital assets and blockchain innovation.
The global real estate tokenization market is projected to reach a valuation of $19.4 billion by 2033, growing at a compound annual rate of 21%. This growth is driven by the potential of blockchain technology to provide liquidity to traditionally illiquid assets and to democratize access to real estate investments for retail investors.
Dubai’s initiative sets a precedent in the MENA region, reflecting the emirate’s commitment to embracing innovative technologies and regulatory frameworks to enhance its real estate and financial sectors.
