Dubai pioneers real estate tokenization in the Middle East
Dubai has officially launched the first licensed tokenized real estate project in the Middle East and North Africa (MENA), signaling a major milestone for blockchain-based real-world asset (RWA) tokenization in the region. The initiative aims to transform property ownership and investment by allowing fractional purchases of real estate through digital tokens.
Government-backed project with institutional partners
The initiative is backed by the Dubai Land Department (DLD), the Central Bank of the United Arab Emirates, and the Dubai Future Foundation. Tokenized property shares will be available via the new Prypco Mint platform, with Zand Digital Bank serving as the pilot phase’s official banking partner.
VARA greenlights real estate tokenization
On May 19, Dubai’s Virtual Assets Regulatory Authority (VARA) updated its framework to include tokenized RWAs, enabling secondary market trading. This regulatory shift provides legal clarity and paves the way for compliant real estate token offerings in the emirate.
Affordable entry into Dubai’s booming property market
During the pilot phase, investors with UAE IDs can buy into ready-to-own properties starting at just AED 2,000 ($545). All transactions will be conducted in Emirati dirham (AED), with no cryptocurrency involved. While the pilot is domestic, authorities plan to open the platform to global investors in future stages.
Linking real estate registry to blockchain
In April, DLD and VARA reached an agreement to integrate Dubai’s real estate registry with property tokenization efforts, aiming to attract foreign capital and improve liquidity. The project was first introduced in March as part of a broader strategy to digitize the property sector.
UAE’s growing influence as a crypto and blockchain hub
The UAE is rapidly cementing its reputation as a global crypto-friendly jurisdiction. In May, Dubai partnered with Crypto.com to enable crypto payments for select government services, demonstrating its openness to Web3 technologies.
Real estate tokenization market set for explosive growth
According to Custom Market Insights, the global real estate tokenization market is projected to reach $19.4 billion by 2033, growing at a 21% CAGR. Tokenized assets offer greater liquidity, transparency, and accessibility—especially for traditionally illiquid markets like real estate.
Companies like RealT and Metlabs are already active in the space, though regulatory complexity remains a hurdle for many startups in the sector.
A regional first, with global ambitions
Dubai’s move to license tokenized real estate marks a pivotal step for RWA adoption in the MENA region. With solid regulatory backing and strong institutional partners, the emirate is positioning itself as a leader in merging blockchain innovation with real estate investment.
