The Dubai government began the pilot phase of a project that would convert real estate assets to digital tokens on the blockchain.
The Dubai Land Department (DLD), a government entity responsible for the registration, organization and promotion of real estate in Dubai, announced that it had started the pilot phase of its real estate tokenization project.
The project was launched in collaboration with the Dubai Future Foundation (DFF) and the Virtual Assets Regulatory Authority (Vara), Dubai’s Crypto Regulator.
The launch of token makes the DLD the first real estate registration entity at water to implement tokenization on property titles.
DLD expects the sector to increase $ 60 billion by 2033
In the announcement, the DLD said that the initiative should stimulate the growth of real estate tokenization. The government agency predicts that its market value could reach more than $ 16 billion by 2033. According to the agency, this represents 7% of Dubai’s total real estate transactions.
DLD Director of the DLD, Marwan Ahmed Bin Ghalita, said in the announcement that real estate tokenization led to a fundamental change in the sector.
“By converting real estate assets into digital tokens recorded on blockchain technology, tokenization simplifies and improves purchasing, sales and investment processes,” he said.
The official said that this dressed up on the vision of the DLD to become a world leader in real estate investment and the use of technology to develop innovative real estate products.
In relation: Mantra and Damac signs an offer of 1 B to Tokenize of the assets of the Middle East
Tokenization to open Dubai real estate to global investors
Scott Thiel, co-founder and CEO of Tinvest, said that the initiative is a “moment of transformation” for the sector. Thiel told Cointelegraph:
“The initiative not only strengthens Dubai leadership in the adoption of blockchain, but also opens the way to a more inclusive, liquid and efficient real estate market.”
The executive working in a RWA platform regulated by Vara told Cintelegraph that the new DLD project would open the Dubai real estate market to a global investor basin.
“Tokénisation is no longer a concept. It is a reality that will open the Dubai real estate market to a global investor basin like never before,” said Thiel Cointelegraph.
In a previous interview, Thiel told Cintelegraph that the proactive regulations of the United Arab Emirates have paved the way for booming the country’s real country (RWA). The executive said that there was a real desire for government agencies to develop clear directives for the sector.
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