Dubai Pioneers Tokenized Real Estate in the Middle East & North Africa

In the Middle East and North Africa (MENA) region, Dubai has pioneered the launch of the first licensed tokenized real estate venture, indicating a growing interest in real-world asset tokenization within a leading global cryptocurrency center.

VARA in Dubai updated its regulations on May 19, specifically allowing for the secondary market trading of real-world asset (RWA) tokens, as detailed in their recent guidelines.

The project will enable individual investors to purchase tokenized shares of Dubai's "ready-to-own properties," with a minimum investment of 2,000 AED ($545). Initially, transactions will only be conducted in AED, excluding cryptocurrency, during the pilot phase. Participation will be restricted to UAE ID holders in the pilot, however, global expansion is planned. A sought-after destination for crypto entrepreneurs, the United Arab Emirates is positioning itself as a crypto hub.

In the coming years, real-world asset tokenization, particularly in real estate, is anticipated to achieve significant advancement. Blockchain technology's key benefits, such as enhancing the liquidity of typically illiquid assets and improving access for retail investors, are realized through this process.

Anticipated to achieve a $19.4 billion market capitalization by 2033, the worldwide real estate tokenization market is projected to expand at a 21% compound annual rate. This growth is forecasted to encompass all segments of the real estate sector: residential, commercial, and industrial.

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