The Dubai authorities have initiated the trial phase of a project aimed at transforming real estate properties into digital tokens on the blockchain.
The Dubai Land Department (DLD), which is a governmental organization that oversees the registration, organization, and promotion of Dubai’s real estate market, declared that it has commenced the pilot stage of its real-estate tokenization initiative.
This initiative was developed in partnership with the Dubai Future Foundation (DFF) and the Virtual Assets Regulatory Authority (VARA), which serves as Dubai’s cryptocurrency regulatory body.
The initiation of token launch makes the DLD the pioneer real-estate registration body in the UAE to adopt tokenization for property title deeds.
DLD anticipates the sector to expand by $60 billion by 2033
In its announcement, the DLD mentioned that this initiative is poised to stimulate growth in the realm of real estate tokenization. The agency forecasts that its market valuation could surpass $16 billion by 2033. According to the department, this equates to 7% of Dubai’s overall real estate dealings.
DLD Director-General Marwan Ahmed Bin Ghalita expressed in the announcement that real estate tokenization instigates a fundamental transformation within the sector.
“Transforming real estate assets into digital tokens recorded on blockchain technology simplifies and enhances the processes involved in buying, selling, and investing,” he stated.
The official noted that this aligns with the DLD’s aspiration to emerge as a global frontrunner in real estate investment and harness technology to innovate real estate offerings.
Related: Mantra and Damac finalize $1B agreement to tokenize assets in the Middle East
Tokenization to broaden access to Dubai real estate for international investors
Co-founder and CEO of Tokinvest, Scott Thiel, stated that this initiative marks a “transformational milestone” for the industry. Thiel shared with Cointelegraph:
“This initiative reinforces Dubai’s position as a leader in blockchain adoption and facilitates a more inclusive, fluid, and efficient real estate marketplace.”
An executive operating within a VARA-regulated RWA platform informed Cointelegraph that the DLD’s latest project would unveil Dubai’s real estate market to a worldwide array of investors.
“Tokenization is no more just a notion. It’s a reality that will make Dubai’s real estate market accessible to a global range of investors as never seen before,” Thiel remarked to Cointelegraph.
In a past conversation, Thiel mentioned to Cointelegraph that the UAE’s ahead-of-the-curve regulations launched the surge in real-world asset (RWA) tokenization within the nation. He emphasized a sincere drive from governmental agencies to create clear regulations for the sector.
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