The Dubai government has begun the pilot stage of a project that will change real estate assets to digital tokens in Blockchain.
The Dubai Land Department (DLD), a government entity responsible for registering, organizing and promoting real estate in Dubai, announced That started the pilot phase of the real-estate tokenization project.
The project was launched in collaboration with the Dubai Future Foundation (DFF) and the Virtual Asset Regulatory Authority (VARA), Dubai regulator.
The launch of the token makes the DLD the first entity of real-estate registration in the UAE to implement the tokenization in the works of the property title.
DLD expects the sector will grow $ 60 billion by 2033
In the announcement, the DLD said the initiative was expected to drive a growing tokenization of real estate. The government agency predicts that its market value can reach more than $ 16 billion by 2033. According to the agency, it represents 7% of the total transactions in Dubai’s real estate.
DLD Director-General Marwan Ahmed Bin Ghalita said in an announcement that the tokenization of real estate is driving a major change in the sector.
“By converting real estate properties to digital tokens recorded in blockchain technology, tokenization improves and enhances the purchase, sale, and investment processes,” he said.
The official said it was aligned with the DLD vision to become a global investment leader in real estate and used technology to produce innovative real estate products.
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Tokenization to open Dubai Real Estate to Global Investors
Tokinvest co-founder and CEO Scott Thiel said the initiative was a “momentary transformation” for the sector. Thiel told Cointelegraph:
“The initiative not only strengthens the Dubai leadership in the blockchain adoption but also the way for a more inclusive, liquid, and efficient real estate market.”
The executive working on an RWA’s VARA regulation platform told Cointelegraph that the new DLD project will open the Dubai real estate market to a global pool of investors.
“Tokenisation is no longer a concept. It is a fact that will open the Dubai real estate market to a global pool of investors as usual,” Thiel told Cointelegraph.
In a previous interview, Thiel told Cointelegraph that the active regulations of the UAE The way is paved For the country’s real-world asset (RWA) tokenization boom. The executive said there was a real desire from government agencies to develop clear guidelines for the sector.
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