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Dubai: the government's “real estate tokenization” plan gets underway
By Davide Grammatica
The Dubai Land Department has launched a “real estate tokenization” project in the UAE, targeting a $16 billion market
Tokenization in Dubai
The government of Dubai has reportedly launched a pilot project to convert real estate assets into tokenized assets on the blockchain.
As stated in the announcement by the Dubai Land Department (DLD), the government agency is working on this in collaboration with the Dubai Future Foundation (DFF) and the Virtual Assets Regulatory Authority (VARA), an operation made possible by crypto regulations that are clear and favorable to the development of new blockchain solutions.
The whole initiative only fuels interest in the real-world-asset (RWA) market, which has seen significant growth over the last year. However, the DLD is among the first government bodies to enter this sector, with a scope in the sector that, according to statements from those directly involved, could reach $60 billion in 2033. The estimate, among other things, would also be on the low side, given that it would cover about 7% of Dubai’s total real estate transactions.
The expansion of the RWA sector
“By converting real estate assets into digital tokens registered on the blockchain, tokenization simplifies and improves the buying, selling and investment processes,” said Marwan Ahmed Bin Ghalita, general manager of DLD. DLD would also aim, through this operation, to become a global leader in real estate investments.
Potentially, the Dubai real estate market would open up to a global pool of investors, all thanks to tokenization.
In this way, Dubai once again confirms itself as a leading crypto hub globally, with government agencies at the forefront of developing clear and favorable guidelines for the sector.
