Dubai Land Department and VARA join forces to roll out real estate tokenization

Dubai plans to roll out real estate tokenization as part of its push to modernise the real estate sector.

According to an April 7 announcement, the Dubai Land Department (DLD) and the Virtual Assets Regulatory Authority (VARA) have signed a new collaboration agreement to support this initiative.

The partnership falls under the broader ‘REES Real Estate Innovation Initiative’ and is expected to pave the way for the tighter integration of virtual assets into property transactions.

The agreement sets out to link Dubai’s real estate registry with blockchain-based property tokens through a formal governance framework.

This will allow for fractional ownership, boost market liquidity, and help streamline operations for property management firms. 

In the announcement, officials noted that it marked the first time such a system had been launched at a government level anywhere in the world.

The two agencies also aim to enhance legal and regulatory structures around virtual assets in real estate while safeguarding investor rights and keeping pace with future developments in the sector. 

Another goal is to make property investment more accessible to smaller investors and open the market up to a wider range of participants.

As part of the collaboration, pilot projects will be launched to test real estate tokenization in live environments.

Further, the agreement outlines plans to enhance digital infrastructure, raise awareness of virtual asset regulations, and align local practices with international standards for investor protection.

The DLD and VARA will also work closely with tech companies interested in advancing real estate tokenization solutions in Dubai.

Commenting on the development, DLD Director General Marwan bin Ghalita described the move as a strategic step toward empowering the real estate sector.

Our partnership with the Dubai Virtual Assets Regulatory Authority aligns with the objectives of the Dubai Real Estate Strategy 2033 and the Dubai Economic Agenda D33, which reinforce Dubai’s global leadership in one of the most vital sectors.

Under the Dubai Real Estate Strategy 2033, introduced last year, the focus is on making the property sector more transparent, tech-driven, and sustainable.

Meanwhile, the Dubai Economic Agenda D33, launched in early 2023, aims to double the city’s GDP over the next ten years.

Dubai’s tokenization push

Dubai’s tokenization push isn’t limited to real estate. Financial regulators are also opening doors for crypto firms to explore tokenised products through the country’s first Tokenization Regulatory Sandbox.

Launched by the Dubai Financial Services Authority, the sandbox is expected to run until April 24, offering a controlled environment for firms to test tokenised investment services.

The program is meant to pave a clear path for crypto firms to trial their tokenised offerings in a controlled environment under the Innovation Testing License programme before eventually securing full approval from the DFSA.

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