Dubai government department launches the Middle East and North Africa (MENA) region’s first tokenized real-estate investment project

A government department in Dubai – the most populous city in the United Arab Emirates (UAE) – has launched what it describes as the Middle East and North Africa (MENA)

A government department in Dubai – the most populous city in the United Arab Emirates (UAE) – has launched what it describes as the Middle East and North Africa (MENA) region’s first tokenised real-estate investment project.

The initiative, which is a pilot, has seen the activation of a digital platform mint.prypco.com, which has been developed by Dubai-based private company Prypco. Prypco’s overall business is focused on ‘simplifying the real estate journey in the UAE by facilitating mortgages, golden visas, investor visas & more.’ Its Prypco Mint website explains that ‘instead of relying on traditional methods and lengthy transactions, properties’ title deeds are registered on the blockchain, making real estate fractional ownership easier, transparent and accessible.’ Fractional ownership is when multiple investors co-own a single property.

The project is also being undertaken in collaboration with the Virtual Assets Regulatory Authority (VARA), the Central Bank of the United Arab Emirates and the Dubai Future Foundation (DFF).

The launch by Dubai Land Department (DLD) – which is the government body that registers property transactions in the city and emirate of Dubai – comes after it announced last year that it was working on a pilot project for tokenised real estate with private companies.

The initiative is being deployed in a ‘real-estate sandbox’ (test space) and is a joint venture with London-headquartered Ctrl Alt Solutions, which specialises in decentralised technologies and tokenisation, and Prypco, a leading innovator in the UAE's property market.

The project will be powered by the XRP Ledger (XRPL), a variant of the cryptocurrency Ripple.

The government body explains that the project aims to create "a new era of possibilities in the real-estate sector" by leveraging blockchain technology to facilitate tokenised fractions of prime properties in Dubai.

The platform, currently available exclusively to UAE ID holders, is "set to expand globally in the near future, with additional platforms to be integrated in later phases, further reinforcing Dubai's position as a global hub for innovation in tokenised real estate".

The initiative is a result of a partnership agreement between DLD, Prypco and Ctrl Alt Solutions to develop a regulatory and operational framework for real-estate tokenisation in a pilot phase. The partnership focuses on strengthening legislation, promoting knowledge, attracting specialised asset tokenisation companies and supporting innovation while safeguarding investor rights.

The project also aims to support the integration of the legal, technical and economic aspects of tokenisation, ultimately contributing to the growth of the knowledge economy and diversifying investment opportunities in the region.

The project will be executed in accordance with the regulations of the Central Bank of the UAE, VARA and DFF, in collaboration with Zand Digital as the banking partner for the pilot phase.

The government grant

The initiative is supported by a grant from the Dubai Future Foundation to develop use cases for Web3 technologies, with the goal of enhancing the quality of life for the community.

Announcing the launch, DLD highlighted the significance of this initiative in advancing Dubai's vision for the future of real estate.

"We are proud to announce the launch of the Mena region's first tokenised real-estate investment project, a testament to Dubai's leadership in the sector and its commitment to harnessing cutting-edge technologies. This initiative aligns perfectly with the directives of our wise leadership to reinforce the legal and regulatory framework for the growing Web3 industry in the region."

The initiative is unfolding within a dedicated real-estate sandbox, overseen by the Virtual Assets Regulatory Authority and the Central Bank of the UAE, in collaboration with the Dubai Future Foundation.

The REES initiative

Last year, Dubai Land Department launched the Real Estate Evolution Space Initiative (REES) to "mobilise thought leaders and industry professionals to spur a wave of progress capable of redefining the urban landscape."

The initiative is designed to foster innovation and create new possibilities in the real-estate sector.

As part of REES, DLD is also cooperating with the USSR to integrate spatial web technologies into the metaverse, aiming to develop a spatial metaverse of Dubai city for the next generation of the internet.

Announcing its involvement in the initiative, Ctrl Alt Solutions described it as a "monumental step for asset tokenisation and the future of property investment in the Emirate."

"The DLD and Ctrl Alt have worked closely together on the development of a secure and compliant tokenisation framework, focusing on structuring, minting and placing real-estate title deed tokens on-chain [blockchain]. All transactions will be carried out exclusively in UAE dirhams, with no use of cryptocurrencies during the pilot phase."

The XRP Ledger (XRPL) has been selected as the blockchain of choice for the project.

Ctrl Alt Solutions has integrated directly with the DLD to synchronise both digital and traditional real-estate ledgers, ensuring coordination between the on-chain and the conventional property registration system. This enables a fully integrated and transparent tokenisation process that aligns