The Dubai Land Department (DLD) has launched a real estate tokenization pilot program, making it the first property registration authority in the Middle East to incorporate blockchain technology for property title deeds. This initiative was developed in collaboration with the Virtual Assets Regulatory Authority (VARA) and the Dubai Future Foundation (DFF), in line with Dubai's 2033 real estate strategy and broader efforts to solidify the city's position as a global tech hub.

The DLD predicts that tokenized real estate could represent 7% of the city’s total property transactions, potentially reaching 60 billion dirhams (about $16 billion) by 2033.

Dubai's push into real estate tokenization is part of a broader trend of integrating blockchain into traditional markets, enabling real-world assets (RWAs) like bonds, funds, and credit to be transferred on blockchain platforms. Tokenizing RWAs allows for fractional ownership and easier transferability, lowering investment barriers and enhancing market liquidity. Unlike crowdfunding, which pools funds for property purchases, tokenization offers a more structured ownership model. However, a recent McKinsey report on tokenization noted that real estate might experience slower adoption due to operational challenges.

Marwan Ahmed Bin Ghalita, director general of the DLD, emphasized that the initiative would “simplify and enhance the processes of buying, selling, and investing” in local real estate, with ongoing collaborations with tech companies to refine and expand the project.