Dubai Launches Real Estate Tokenization Pilot Program for Property Deeds
The Dubai Land Department (DLD) has launched a real estate tokenization pilot program, becoming the first property registration authority in the Middle East to implement blockchain technology for property title deeds. The initiative, developed with the Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF), aligns with Dubai’s 2033 real estate strategy.
Key points include:
- Projected tokenized real estate transactions could reach 60 billion dirhams ($16 billion) by 2033.
- The move integrates blockchain into traditional markets, enhancing liquidity and lowering investment barriers.
- Tokenization allows fractional ownership and transfer of real-world assets (RWAs) on the blockchain.
- Unlike crowdfunding, tokenization offers a structured ownership model.
- A McKinsey report indicated potential slower growth for real estate tokenization due to operational challenges.
Marwan Ahmed Bin Ghalita from DLD stated that the initiative aims to simplify buying, selling, and investing in local real estate, with ongoing engagement with tech firms to refine the project before broader implementation.