The government of Dubai has initiated the pilot phase of a project aimed at transforming real estate assets into digital tokens on the blockchain.
The Dubai Land Department (DLD), which oversees the registration and promotion of real estate in the city, recently disclosed that it has begun this pilot program for real estate tokenization.
This initiative is in collaboration with the Dubai Future Foundation (DFF) and the Virtual Assets Regulatory Authority (VARA), responsible for regulating cryptocurrencies in Dubai.
With this token launch, the DLD becomes the first real estate registration authority in the UAE to apply tokenization to property title deeds.
### DLD projects $60 billion growth in the sector by 2033
In its announcement, the DLD emphasized that this initiative is anticipated to stimulate growth within the real estate tokenization space. The agency forecasts that the market’s value could exceed $16 billion by 2033, accounting for roughly 7% of Dubai’s entire real estate transactions.
Marwan Ahmed Bin Ghalita, the DLD Director-General, stated that real estate tokenization signifies a pivotal shift within the sector.
“By turning real estate assets into digital tokens registered on blockchain technology, tokenization simplifies and enhances the processes of buying, selling, and investing,” he explained.
He added that this development aligns with the DLD’s vision to establish itself as a global leader in real estate investment while leveraging technology to create innovative offerings in the real estate market.
### Tokenization set to make Dubai real estate accessible to global investors
Scott Thiel, co-founder and CEO of Tokinvest, described this initiative as a “transformative moment” for the industry. He noted:
“The initiative not only cements Dubai’s position in blockchain adoption but also lays the groundwork for a more inclusive, liquid, and efficient real estate market.”
The executive, who operates on a VARA-regulated Real World Asset (RWA) platform, mentioned that the DLD’s new initiative would make Dubai’s real estate market available to a wider array of international investors.
“Tokenization is no longer just a concept; it’s now a reality that will broaden access to Dubai’s real estate market like never before,” Thiel stated.
In an earlier conversation, he remarked that the UAE’s proactive regulatory environment has sparked a surge in RWA tokenization, reflecting a genuine commitment from government entities to create clear guidelines for this evolving sector.