The Dubai government has launched a pilot phase of its project to convert real estate assets into digital tokens for blockchain.
Dubai Land Division (DLD), the governmental body responsible for registering, organizing and promoting real estate in Dubai, has announced that it will begin the pilot phase of its real estate tokenization project.
The project was launched in collaboration with the Dubai Future Foundation (DFF) and the Virtual Asset Regulatory Authority (VARA), the cryptographic regulator of Dubai.
With the launch of the token, DLD will become the first real estate registered entity in the UAE, implementing tokenization in property title certificates.
DLD hopes the sector will increase by $60 billion by 2033
In its announcement, DLD said the initiative is expected to drive growth in real estate tokenization. The agency predicts its market value could reach more than $16 billion by 2033. According to the agency, this accounts for 7% of Dubai’s total real estate transactions.
DLD Director Marwan Ahmed Bin Garita said he has announced that real estate tokenization will drive fundamental change in the sector.
“By converting real estate assets into digital tokens recorded in blockchain technology, tokenization simplifies and enhances the purchasing, selling and investment process,” he said.
Officials said this is in line with DLD’s vision to become a global leader in real estate investment and use technology to develop innovative real estate products.
Related: Mantra and Damac sign a billion dollar deal to tokenize Middle Eastern assets
Tokenization of Dubai real estate to open global investors
Scott Thiel, co-founder and CEO of Tokinvest, said the initiative was a “transformational moment” for the sector. Tiel told the Cointelegraph:
“This initiative not only strengthens Dubai’s leadership in blockchain adoption, but also paves the way for a more inclusive, fluid and efficient real estate market.”
An executive working on VARA-controlled RWA platform told Cointelegraph that DLD’s new project will open Dubai’s real estate market to a pool of investors around the world.
“Tokenization is no longer a concept. This is the reality that opens up Dubai’s real estate market to an unprecedented pool of global investors,” Tiel told Cointelegraph.
In a previous interview, Tiel told Cointelegraph that aggressive regulations in the UAE paved the way for the country’s real-world asset (RWA) tokenization boom. Executives said there is a real desire from government agencies to develop clear guidelines for the sector.
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