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Arabian Business
15-04-2025
- Business
- Arabian Business
Real estate tokenisation: Dubai predicted to see $16bn market for digital fractional ownership
Dubai's landmark initiative to kick off the tokenised property title deeds is projected to create a massive over $16 billion digital fractional ownership market in the emirate in the next few years, accounting for a sizeable share of property transactions in the emirate, sector experts told Arabian Business. The move is also expected to further boost overseas investments in the city's real estate sector, especially the residential segment, with tokenised online real estate platforms attracting international investors in large numbers, especially from Europe and Asia, bringing in top-dollar investments, they said. The Dubai Land Department (DLD) announced the launch of a pilot project to tokenise property title deeds in March this year, becoming the first land registry in the Middle East to implement blockchain-based property tokenisation. Implementation of tokenisation will enable fractional ownership of real estate assets, entitling holders to a portion of the property's ownership or economic returns such as sale proceeds and rental incomes. Dubai's revolutionary move in this combines traditional fractional ownership with blockchain technology to create transferable digital assets. ' Real estate tokenisation is currently reaching a pivotal point globally, with significant developments such as Dubai's successful pilot programme attracting increased attention from investors, developers, and regulators,' Sergei Ivanov, Founder & CEO of Alma, a next-generation prop-tech platform, told Arabian Business in an exclusive interview. 'DLD's move marks what was long discussed in theory becoming a practical reality,' he said. Ivanov, who is also a member of the Dubai PropTech Business Group and TechIsland PropTech WG, said they estimate this groundbreaking initiative could create an AED60 billion ($16.3 billion) tokenised real estate market by 2033, accounting for around 7 per cent of Dubai's property transactions. He said in the long run, the broader investor reach enabled by the tokenisation move could significantly increase property values in Dubai. 'This will also allow unprecedented diversification, enabling investors to hold small stakes in properties across different countries,' Ivanov said. Dubai real estate tokenisation The Alma Founder said in the Middle East, Dubai is setting a strong precedent by actively involving government entities such as the Dubai Land Department and the Virtual Assets Regulatory Authority (VARA) for the real estate tokenisation initiative. 'This proactive approach significantly boosts investor confidence and positions the region as a global hub for tokenised real estate,' he said. The growing interest among younger, tech-savvy investors further highlights the market's potential for this far-reaching initiative, he added. Ivanov, who is considered as a new age investment 'guru' in the real estate sector, said the tokenisation initiative will be a major boost for global accessibility for real estate investments in the emirate. Someone in Europe or Asia, where regulations are either already put in place or being enacted for the digital assets sector, can now easily invest in a tokenised property in Dubai, bringing in cross-border capital. Citing a recent survey, he said as high as 58 per cent of high-net-worth individuals (HNWIs) investors see lower transaction costs as a key reason to invest in tokenised assets. 'These benefits explain why forward-thinking jurisdictions are embracing tokenisation to spur innovation in the property sector,' the Dubai PropTech Business Group board member said. He, however, said technological advances coupled with clear and harmonised regulatory frameworks, offering a promising outlook where property investment becomes simpler, more transparent, and accessible to all, are essential for the mainstream adoption of real estate tokenisation. In this context, he said Europe's evolving landscape, including the EU's Markets in Crypto-Assets (MiCA) framework for qualifying tokens and established MiFID II regulations for security tokens could be looked at by authorities in Dubai for adopting a best-suited model for encouraging broader market participation. Regulatory considerations highly important Legal experts, however, said alongside the excitement, it is crucial to address the legal and regulatory considerations that come with this new model of real estate investment. 'Legal considerations for tokenised real estate are a heavily regulated domain, and introducing blockchain tokens does not change that reality,' Michael Pelosi, Senior Legal Counsel at Elias Neocleous & Co LLC, told Arabian Business. 'Issuers and investors in tokenised property must navigate two layers of law – first, traditional securities/real estate regulations, and second, newer rules for digital assets,' he said. Market players said the tokenisation move means converting ownership or economic rights in a property into digital tokens on a blockchain, with each token representing a fractional share of the property's value or income. In practice, however, this often involves placing a property into a legal entity such as a special-purpose vehicle (SPV), and issuing tokens that represent shares or bonds of that entity. Pelosi said the growth of tokenised asset markets can improve liquidity significantly, making tokenised real estate more attractive and accessible to investors. Pelosi and Ivanov said Dubai's tokenisation move is fast gaining traction as it can potentially solve long-standing problems in real estate investment. The key benefits include increased liquidity – as owners can trade small shares of a property on digital marketplaces, enabling faster buy-sell transactions like securities, and lower entry barriers – with investors able to participate with a few hundred dollars instead of hundreds of thousands, thus democratising access to real estate and creating a wider pool of investors, they said. Investors will also benefit from real-time transparency of who owns what share, they said, adding that smart contracts can also automate enforcement of rights like distributing rental income to token holders with high accuracy. They, however, said Investors evaluating a token offering should always examine what type of instrument the token represents – whether equity, debt, revenue share – and what specific rights and restrictions come with it, as tokenised offerings can fall into different regulations, depending on their instrument types – securities, bonds or private placements. Enforcement of contracts can also be tricky if token holders are globally dispersed, and questions of applicable jurisdiction can arise in disputes, they said. 'This is an evolving area, underscoring the importance of careful legal structuring and for investors to understand the terms of their token holdings,' Pelosi said.
Hi Dubai
02-04-2025
- Business
- Hi Dubai
UAE's Citizen Housing Sector Expands with Landmark Initiatives in 2025
The UAE's citizen housing sector witnessed substantial growth in the first quarter of 2025, aligning with the 'Year of Community' initiative. Driven by a commitment to family stability and well-being, the government launched a series of transformative projects and policies at both federal and local levels. With an ambitious strategy centered on innovation and excellence, the UAE has achieved a homeownership rate exceeding 91% by the end of 2024, ranking among the highest globally. The Sheikh Zayed Housing Programme granted over AED1 billion in housing approvals in January alone, benefiting more than 1,300 citizens. This initiative has shortened the waiting period for housing approvals to just two months; one of the fastest timelines worldwide. Since its inception in 1999, the Sheikh Zayed Housing Programme has allocated AED60 billion, supporting over 90,000 Emiratis. In Abu Dhabi, a housing benefits package worth AED6.75 billion was approved, benefiting 4,356 citizens. This includes AED5.08 billion in housing loans, AED1.585 billion in land grants and ready-built homes, and AED94.8 million in loan exemptions for senior citizens and limited-income retirees. Cumulatively, Abu Dhabi has delivered AED168.85 billion in housing benefits to over 123,000 citizens. Major developments have also been launched across the UAE. In Al Ain, the Al Saad residential project, spanning 1.23 million square meters, was unveiled at a cost of AED993.7 million to provide 306 villas. Meanwhile, Dubai announced AED5.4 billion in housing projects under the Sheikha Hind bint Maktoum Family Programme, with 3,004 new homes planned across multiple locations. Additionally, Dubai Municipality introduced the "Home First" initiative in March to enhance urban planning and housing solutions for Emirati families. Sharjah also progressed its housing agenda, with the Executive Council approving 2,000 residential and investment land grants in February. These initiatives collectively reinforce the UAE's commitment to strengthening social cohesion, elevating living standards, and ensuring accessible housing solutions for its citizens. News Source: Emirates News Agency
Arabian Business
31-03-2025
- Business
- Arabian Business
Dubai real estate: DLD launches new property tokenisation project in Middle East's first
Dubai Land Department (DLD) has launched the pilot phase of its 'Real Estate Tokenisation Project' as part of efforts to strengthen Dubai's position in property technology and implement the Dubai Real Estate Sector Strategy 2033. The initiative makes DLD the first real estate registration entity in the Middle East to implement tokenisation on property title deeds. The project, introduced under the Real Estate Innovation Initiative 'REES', is being implemented in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) through SandBox Real Estate. Dubai real estate tokenisation market to hit $16bn by 2033 Eng. Marwan Ahmed Bin Ghalita, Director General of Dubai Land Department said: 'Amid rapid technological advancements and the increasing reliance on digital solutions, real estate tokenisation emerges as a revolutionary tool driving fundamental change in the real estate sector. 'By converting real estate assets into digital tokens recorded on blockchain technology, tokenisation simplifies and enhances buying, selling, and investment processes. This aligns perfectly with Dubai Land Department's vision to achieve global leadership in real estate investment, leverage technology to develop innovative real estate products, and foster an ecosystem that supports real estate innovation.' DLD forecasts that the real estate tokenisation sector will reach AED60 billion by 2033, representing 7 per cent of Dubai's total real estate transactions. As part of the launch, DLD organised a workshop on 'Real Estate Tokenisation' with leading proptech companies. 'This pioneering project is part of the recently launched 'REES' Real Estate Innovation Initiative, designed to attract diverse technology firms. It aligns with our strategy to unlock new opportunities for innovative real estate products, enhance property sector innovation, promote transparency and governance, and enable a wider pool of investors to participate in large-scale real estate projects in Dubai,' he added. Following the pilot launch this year, DLD will assess the outcomes to refine the project before full-scale implementation. Dubai Land Department unveils fractional property ownership through tokenisation The Real Estate Tokenisation Project aims to attract global technology firms and create new investment opportunities. It will diversify property ownership by allowing multiple investors to co-own properties through tokenised assets. The initiative intends to strengthen Dubai's position as a regional and global hub for virtual assets while promoting investment awareness in virtual asset services. It also supports real estate innovation and contributes to attracting investments and virtual asset companies to Dubai. Real estate tokenisation transforms assets into digital tokens using blockchain technology, with each asset divided into shares based on an investor's budget and financial strategy. This enables fractional property ownership, allowing investors to acquire portions of properties without full purchases. The project supports the Dubai Economic Agenda D33, which prioritises digital solutions to build a smart economy driven by knowledge, innovation, and future technologies. 'We are pleased to collaborate with partners from both the public and private sectors to advance the real estate industry's digital ecosystem and enhance our operations' efficiency and effectiveness. Following this year's pilot launch, we will thoroughly assess the outcomes and leverage key insights to refine the project ahead of its full-scale implementation,' he concluded.
Zawya
31-03-2025
- Business
- Zawya
UAE invests billions to bolster citizen housing
ABU DHABI: The UAE's housing sector for citizens witnessed a significant boost in the first quarter of 2025, designated as the "Year of Community," with the launch of extensive initiatives and projects reflecting the leadership's commitment to family stability and well-being. The UAE is developing its citizen housing sector at both federal and local levels through an ambitious strategy focused on innovation and excellence in solutions and services. This has contributed to a citizen homeownership rate exceeding 91 percent by the end of 2024, among the highest globally. In January, over AED1 billion in housing approvals were granted under the Sheikh Zayed Housing Programme to more than 1,300 citizens. The number of beneficiaries will increase throughout the year to meet all submitted housing requests. The current waiting time for housing approval from the programme is only two months, which is among the shortest globally. Since its establishment in 1999 until the end of 2024, the Sheikh Zayed Housing Programme has supported over 90,000 Emirati citizens with an allocation of AED60 billion. In Abu Dhabi, a housing benefits package worth AED6.75 billion has been approved, benefiting 4,356 Emirati citizens across the emirate. The approved housing benefits package includes housing loans amounting to AED5.08 billion benefiting 3,172 citizens, land grants and ready-built houses valued at AED1.585 billion benefiting 1,100 citizens, as well as exemptions from housing loan repayments totalling more than AED94.8 million benefiting 84 senior citizens, limited-income retirees and beneficiaries of deceased citizens. This package brings the total housing benefits delivered to citizens in Abu Dhabi since the establishment of the Abu Dhabi Housing Authority to over 123,000, amounting to approximately AED168.85 billion. February saw the launch of the Al Saad residential project in Al Ain, spanning 1.23 million square metres with a total cost of AED993.7 million, providing 306 villas for citizens. Furthermore, the Department of Municipalities and Transport in Abu Dhabi announced the launch of a new "Value Housing Programme" to bolster versatility in the emirate's real estate market, improve living standards for individuals and families, and foster community integration. Developments in Dubai include the implementation of housing projects worth AED5.4 billion across various areas in the emirate, supporting the Sheikha Hind bint Maktoum Family Programme. The projects will see 3,004 new homes being built for Emirati citizens. Of these, 1,181 homes will come up in Latifa City for beneficiaries under the housing loan category. For beneficiaries in the housing grant category, the projects envisage 606 new homes in Al Yalayis; 5, 432 in Wadi Al Amardi; 398 in Al Awir; 1, 200 in the Makan area of Hatta; 120 in Oud Al Muteena; and 67 in the countryside and rural areas of Dubai. In March, Dubai Municipality launched the "Home First" initiative to provide housing solutions for Emirati families. It is a comprehensive set of urban planning amendments and housing solutions to strengthen family stability, foster social cohesion, and improve the quality of life for Emirati families. In February 2025, the Sharjah Executive Council approved the first batch of beneficiaries for residential and investment land grants, totalling 2,000 recipients: 1,200 for residential land grants and 800 for investment land grants, distributed across the emirate's cities and regions.
Arabian Business
03-03-2025
- Entertainment
- Arabian Business
Dubai announces $27,200 Ramadan home decoration contest
Households in Dubai have been invited to showcase their creativity by adorning their homes with festive decorations and lighting throughout Ramadan to win a top prize of AED100,000 ($27,200). Brand Dubai and Ferjan Dubai announced the launch of the 'Dubai's Best Decorated Ramadan Homes' competition. With prizes, including AED100,000 ($27,200) for the first-place winner, AED60,000 ($16,300) for second place, and AED40,000 ($10,900) for third, the competition encourages families to celebrate the spirit of Ramadan by decorating their homes. Dubai Ramadan decorations Apart from the top three prizes, seven participants will win Umrah trips for two. The competition aligns with the 'Year of the Community', reinforcing cultural heritage, fostering a deeper sense of connection within society, and ensuring that traditions are preserved in meaningful ways for current and future generations. Shaima Al Suwaidi, Director of Brand Dubai, said: 'Dubai is a city that thrives on the creativity and innovation of its community, with festive celebrations playing a key role in bringing people together'. She added that this competition offers a unique opportunity for families to celebrate their traditions, engage with the wider community and create memorable experiences. She said: 'By transforming their homes with festive decorations and lights, residents contribute to a collective celebration that extends beyond their doorsteps, strengthening social bonds in the city.' Submission guidelines are as follows: The competition is open to city residents only; home facades must be decorated with lights and other decorations #RamadanInDubai logo can be incorporated into the decorations Videos should creatively showcase the decorations while reflecting the theme of the 'Year of the Community' The deadline for submissions is March 21. A judging panel will evaluate the most visually striking and innovative submissions. To ensure fair representation and encourage widespread participation, no two winners will be from the same neighbourhood. Aliya Al Shamlan, CEO of Ferjan, said: 'With 2025 declared as the Year of the Community, we want to highlight the role of traditions in strengthening the social fabric of Dubai. Decorating homes is more than just a festive gesture, it's a way for residents to express their identity and creativity, take pride in their surroundings, and contribute to an atmosphere of joy that extends across the city.'
