Dubai Pioneers MENA’s First Tokenised Real Estate—Redefining Property Investment

With its pro-business climate, robust legal frameworks, and technology-forward mindset, Dubai is again setting the benchmark for the region. The tokenisation of real estate is no longer just a concept—it is now a regulated, accessible reality.

In a pioneering move for the region, the Dubai Land Department (DLD) has launched the Middle East and North Africa’s (MENA) first tokenised real estate investment project through the ‘Prypco Mint’ platform. The initiative, unveiled this week, positions Dubai as a leader in adopting blockchain technology in property markets, enabling fractional ownership and reshaping traditional real estate investment models.

What Tokenisation Means for Real Estate?

Tokenised real estate refers to the digital representation of property assets using blockchain-based tokens. This allows investors to purchase a fraction of a property, lowering the financial barrier to entry while offering increased liquidity and transparency. 

The Prypco Mint platform leverages blockchain and smart contract technology to tokenise real-world property assets, making them tradeable through regulated digital frameworks.

With this launch, Dubai becomes the first city in MENA to formally regulate and implement a platform that facilitates digital asset-backed real estate transactions, aligning with the broader goals of the Dubai Economic Agenda D33.

Backing and Regulation

The project is backed and regulated by the DLD, ensuring compliance with UAE real estate and financial regulations. The regulatory oversight lends credibility and legal certainty to this new model of ownership. The DLD emphasised that this initiative supports their vision of creating a more transparent, efficient, and inclusive property market.

The introduction of fractional ownership aligns with Dubai’s long-standing ambition to democratise real estate investment and attract a wider pool of investors, including younger demographics and overseas buyers who may not have access to traditional financing options.

Technology and Innovation at the Core

The Prypco Mint platform uses blockchain to record and validate transactions, ensuring immutability, transparency, and traceability. It also integrates Know Your Customer (KYC) and Anti-Money Laundering (AML) checks in compliance with the UAE Central Bank and Virtual Asset Regulatory Authority (VARA) standards.

Commenting on the launch, a DLD spokesperson noted:

“This is not just about property; it’s about embracing the future of investment. We aim to make Dubai the global hub for real estate innovation.”

Expert Legal Insights

Sunil Ambalavelil, Chairman of Kaden Boriss and a leading real estate lawyer in the UAE, welcomed the development as a landmark legal and technological breakthrough. He stated:

• “This is a defining moment for both the legal and property sectors in the UAE.”

• “Tokenisation introduces a new asset class that must be addressed within the existing legal framework. The DLD’s leadership in regulating this ecosystem ensures investor protection, while simultaneously enabling growth and innovation.”

• “The fractional ownership model particularly enhances accessibility, allowing even small investors to participate in Dubai’s robust real estate market.”

Ambalavelil added that future legislation would likely evolve to accommodate digital real estate contracts, token custodianship, and dispute resolution mechanisms rooted in blockchain records.

A Must-Read: Why You Need a Real Estate Lawyer When Buying Property in Dubai

Market Potential and Investment Impact

The move is expected to open up significant opportunities for both domestic and foreign investors. 

According to a 2024 report by PwC, global real estate tokenisation is projected to become a $1.4 trillion market by 2030, with MENA accounting for an increasingly larger share.

Dubai’s real estate sector has shown remarkable resilience, with transactions crossing AED 528 billion in 2023, according to the DLD’s annual report. Besides, women accounted for over AED 58.8 billion in real estate investments in 2023, making up more than 30% of total transactions.

Introducing a blockchain-based investment route could further accelerate growth by making the market more liquid and attractive to tech-savvy and institutional investors.

Click Here to Learn More About Blockchain Revolution in the UAE. 

Understanding Legal Issues in Tokenised Property

While the initiative is groundbreaking, legal professionals caution that it introduces new complexities that must be carefully navigated. These include questions around:

• Legal recognition of token ownership under property and contract law

• Jurisdictional challenges in cross-border transactions involving fractional tokens

• Taxation issues related to capital gains on digital assets

• Custodianship and digital asset security, especially in the case of legal disputes

• Inheritance and succession planning, as tokenised assets, must be integrated into personal estate law frameworks

The classification of real estate tokens—whether as securities, real property interests, or a hybrid—remains a key legal grey area. Ensuring compliance with AML/KYC laws, data protection regulations, and dispute resolution mechanisms based on blockchain-based evidence further complicates the legal landscape.

In such emerging scenarios, Kaden Boriss, with its deep expertise in real estate, technology, and financial regulation, stands ready to guide investors, developers, and regulators through the legal intricacies of tokenised property investment.

Evolving Regulatory Frameworks in the UAE and Beyond

From a regulatory standpoint, jurisdictions worldwide differ in how they treat tokenised assets—some considering them financial instruments, others real estate derivatives.

The UAE, however, has been at the forefront of drafting flexible frameworks. The VARA Law and Digital Assets Regulations 2022 provide a foundation upon which such innovative platforms can be scaled while ensuring investor protection, dispute resolution access, and AML compliance.

Enhancing Global Appeal

The introduction of tokenised real estate is expected to further elevate Dubai’s standing as a global real estate and fintech hub. International investors often cite regulatory clarity and market innovation as decisive factors, and Dubai appears to be delivering both in equal measure.

The launch also aligns with the UAE Centennial 2071 Vision, which promotes knowledge-driven, tech-enabled development across all sectors, including real estate, finance, and legal systems.

What’s Next?

The DLC and Prypco are expected to roll out additional features in the coming months, including secondary market capabilities, allowing token holders to trade their shares. Educational programs for real estate agents, lawyers, and financial advisors are also on the horizon to ensure that market participants are fully equipped to engage with this evolving landscape.