Dubai Land Department Launches Blockchain-Powered Real Estate Tokenisation Project

The Dubai Land Department is leveraging blockchain technology to tokenise real estate assets, allowing for fractional ownership and increased liquidity in the property market.

The Dubai Land Department (DLD) has begun the pilot phase of its real estate tokenisation project, a move that could transform the industry.

The initiative, closely aligned with Dubai’s broader digital asset regulations, will convert real estate assets into digital tokens.

This will allow for fractional ownership and increased liquidity, opening up new avenues for investment.

Lowering entry barriers

The tokenisation project is designed to lower entry barriers for investors, enabling broader participation in Dubai’s real estate sector.

This is particularly relevant for smaller-scale investors who may typically find it difficult to get involved in the high-value nature of direct property investment.

Announcing the project, DLD Director-General Marwan Ahmed Bin Ghalifa said, “We are introducing a pilot phase for real estate tokenisation.

“This initiative aligns with the vision of the leadership to integrate blockchain technology in order to enhance transparency, efficiency and accessibility in property transactions.”

He added that the initiative will be closely aligned with the legal framework and regulations for cryptocurrency and digital assets, which the government has been developing throughout 2023.

“As a global hub for innovation and investment, the UAE is at the forefront of adopting blockchain technology for practical applications,” Bin Ghalifa said.

“The DLD’s initiative in tokenising real estate assets will further cement Dubai’s status as a leading financial and technological center in the region and beyond.”

The DLD is a government entity wholly responsible for registering, organising and promoting Dubai real estate.

To neutralise any potential conflicts of interest, the DLD will not be involved in issuing the tokens. Instead, it will provide supervision to ensure compliance with relevant regulations.

The move comes as the Gulf state continues to be a hotbed for blockchain adoption. Earlier this year, the government announced plans to introduce a central bank digital currency (CBDC).

Insiders told Real Estate Express that the initiative is a natural progression for Dubai, given its existing role in the Mena region’s financial markets.

One source said, “The initiative aligns perfectly with Dubai’s broader vision for leveraging technology to create a thriving and inclusive economic landscape.”

Another added that the move will likely attract more foreign investors, especially those with smaller capital amounts, who are looking for easily accessible avenues to invest in Dubai’s promising real estate market.