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The Dubai government has started the pilot phase of a project that will convert real estate assets into digital tokens on the blockchain.
The Dubai Land Department (DLD), a government entity responsible for registering, organizing and promoting Dubai real estate, announced that it started the pilot phase of its real-estate tokenization project.
The project was launched in collaboration with the Dubai Future Foundation (DFF) and the Virtual Assets Regulatory Authority (VARA), Dubaiβs crypto regulator.
The token launch makes the DLD the first real-estate registration entity in the UAE to implement tokenization on property title deeds.
DLD expects the sector to grow $60 billion by 2033
In the announcement, the DLD said the initiative is expected to drive growth in real estate tokenization. The government agency predicts that its market value could reach over $16 billion by 2033. According to the agency, this represents 7% of Dubaiβs total real estate transactions.
DLD Director-General Marwan Ahmed Bin Ghalita said in the announcement that real estate tokenization drives a fundamental change in the sector.
βBy converting real estate assets into digital tokens recorded on blockchain technology, tokenization simplifies and enhances buying, selling, and investment processes,β he said.
The official said this aligns with the DLDβs vision to become a global leader in real estate investment and use technology to develop innovative real estate products.
Related: Mantra and Damac sign $1B deal to tokenize Middle Eastern assets
Tokenization to open up Dubai real estate to global investors
Tokinvest co-founder and CEO Scott Thiel said the initiative is a βtransformative momentβ for the sector. Thiel told Cointelegraph:
The executive working in a VARA-regulated RWA platform told Cointelegraph that DLDβs new project would open Dubaiβs real estate market to a global pool of investors.
βTokenisation is no longer a concept. Itβs a reality that will open up Dubaiβs real estate market to a global pool of investors like never before,β Thiel told Cointelegraph.
In a previous interview, Thiel told Cointelegraph that the UAEβs proactive regulations paved the way for the countryβs real-world asset (RWA) tokenization boom. The executive said there was a genuine desire from government agencies to develop clear guidelines for the sector.
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