In continuation of the Dubai Land Department’s approach to consolidating the emirate’s position on the global real estate technology map, as one of the most important goals of the Dubai Real Estate Strategy 2033, the department launched the pilot phase of the “Real Estate Tokenization” project, one of the projects under the umbrella of the “Res Initiative for Real Estate Innovation.”
This initiative makes Dubai Land Department the first real estate registration department in the Middle East to adopt real estate tokenization on title deeds. The project is being implemented in cooperation with the Dubai Virtual Assets Regulatory Authority and the Dubai Future Foundation through the “Real Estate Sandbox.”
Dubai Land Department forecasts that the value of the real estate tokenization sector in the emirate will witness tremendous growth, reaching AED 60 billion by 2033, representing 7% of total real estate transactions in Dubai.
To this end, Dubai Land Department held a workshop on “Real Estate Tokenization” attended by several real estate technology companies, including leading global companies in the field of real estate tokenization technology. A Revolutionary Tool
Engineer Marwan Ahmed bin Ghalita, Director General of Dubai Land Department, said: “In light of the rapid development of technology and the increasing reliance on digital solutions, real estate tokenization is emerging as one of the revolutionary tools that is bringing about a radical change in the real estate sector. Real estate tokenization enables the conversion of real estate assets into digital tokens recorded on blockchain technology, contributing to the simplification and facilitation of buying, selling, and investing processes. This is fully aligned with Dubai Land Department’s vision to achieve global leadership in real estate investment, harness technology to develop real estate products, and provide an incubator environment for real estate innovation.”
He added: “This pioneering project is part of the RIS Real Estate Innovation Initiative, which the Department recently launched with the aim of attracting multiple technology companies. It is also in line with our strategy to unlock opportunities and capabilities for providing new real estate products, developing innovation in the real estate infrastructure, enhancing transparency and governance, and providing the opportunity for a wider segment of investors to participate in major real estate projects in Dubai. We are pleased to collaborate with various partners from the public and private sectors to advance the digital ecosystem in the sector and enhance the effectiveness and efficiency of our operations. Following the pilot launch this year, we will study all outcomes and utilize the recommendations to develop the project before the official full launch.
Project Objectives
The “Real Estate Tokenization” project aims to attract global technology companies, open new investment opportunities for investors, and achieve diversity in real estate unit ownership, allowing multiple individuals to purchase a single property through real estate token ownership. It also aims to enhance Dubai’s position as a regional and global destination for virtual assets, enhance the emirate’s competitiveness at the local and international levels, raise investment awareness in the virtual asset services and products sector, encourage innovation in the real estate sector, contribute to attracting investments and companies operating in the virtual asset sector to make the emirate a hub for their businesses, and provide the necessary systems to protect investors and those involved in virtual assets. Real estate tokenization is a process of converting real estate assets into digital representations and tokens based on blockchain technology. Each asset is divided into shares based on the investor’s budget and financial strategy, with real estate investments being made at small percentages. This represents a qualitative and new transformation that allows ownership of a portion of a property without the need to purchase it in its entirety, using modern technology. This distinguishes it from crowdfunding, which allows investors to enter the real estate market with small amounts via electronic platforms.