Dubai launched the first licensed tokenized real estate project in the MENA region
Dubai launched the first licensed tokenized real estate project in the Middle East and North Africa (MENA) region, which previewed appetite for real-world tokenization in one of the world’s burgeoning crypto hubs.
Project partners include the Dubai Land Department (DLD), the Central Bank of the United Arab Emirates, and the Dubai Future Foundation, according to announcement from the Dubai government. The tokens can be purchased on the newly launched “Prypco Mint” platform, with the Zand Digital Bank appointed as a bank for the project pilot stage.
On May 19, Dubai’s Virtual Assets Regulatory Authority (VARA) Its policies have been updated To integrate the tokenization of the real-world asset (RWA), allowing such tokens to be exchanged in the second market.
Related: UAE saw 41% increase in Crypto app downloads in 2024 – Appsflyer
The project will allow individual investors to buy tokenized shares in “ready-owned properties in Dubai,” with investments starting at 2,000 Emirate Dirham ($ 545). During the pilot phase, all transactions will be conducted in Dirham (AED), which will not be used cryptocurrency. Although the pilot program is limited to UAE ID holders, there are plans to expand it worldwide.
In April, the DLD and Vara came to connect with Dubai’s The registry of real estate with tokenization of possession. The stated goal is to attract global investors and enhance liquidity in the Dubai real estate market. The project first was announced in March.
A sought destination for crypto entrepreneurs, the United Arab Emirates is The positioning itself as a crypto hub. In May, Dubai, an emirate within the country, cooperated with crypto.com to help facilitate crypto payment for government services.
Related: Dubai Crypto Regulator provides Vasp license to RWA-friendly L1 Blockchain
The real estate tokenization market can reach $ 19.4B by 2033
Real estate is one of the many areas of RWA tokenization that has prepared for a success over the next few years. It fulfills some basic promises of blockchain technology, which provides liquidity in relatively unfair properties and providing more access to retail investors.
According to In custom market views, the global real estate tokenization market is expected to reach a $ 19.4 billion market cap by 2033, growing at an annual rate of 21%. All three types of real estate – accommodation, commercial, and industrial – will be performed.
Some of the companies that specialize in tokenizing real estate include Realt and Metlabs. However, many others struggle with their efforts, mainly due to the complexity of navigating regulatory requirements.
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