Dubai Land Department Launches the Region's First Tokenized Real Estate Investment Project

Dubai Land Department (DLD) has launched the Middle East and North Africa region's first tokenized real estate investment project through the 'Prypco Mint' platform.

Dubai Land Department (DLD) has launched the Middle East and North Africa region’s first tokenised real estate investment project.

The initiative, part of Dubai’s Real Estate Sandbox programme, is being carried out in collaboration with Prypco, and supported by the Virtual Assets Regulatory Authority (VARA), the Central Bank of the UAE, and the Dubai Future Foundation.

Zand Digital Bank has been appointed as the banking partner for the pilot phase.

The project enables users to invest in tokenised shares of ready-to-own properties in Dubai, with a minimum entry point of Dhs2,000.

Currently, investments are accepted only in UAE dirhams, and the use of cryptocurrencies is not permitted at this stage.

Available exclusively to UAE ID holders during the pilot, the platform is expected to expand globally in future phases.

DLD, VARA, and the Central Bank of the UAE will oversee investor funds, ensuring a tightly regulated investment environment.

“This initiative is designed to open the market to small-scale investors by providing access through a regulated and transparent investment framework,” DLD said.

Tokenised shares offer investors access to property ownership without the need for full capital outlay.

The platform provides users with comprehensive information including pricing, risk assessments, and technical property specifications to enable them to make informed decisions.

The move follows a partnership between DLD, Prypco, and Ctrl Alt Solutions to create a regulatory and operational framework that integrates Web3 technologies with existing property investment laws.

The partnership aims to promote innovation while safeguarding investor rights.

The initiative is part of Dubai’s broader efforts to foster a tokenised economy, and it is supported by the Central Bank of the UAE, which regulates all financial institutions operating within the country.

By 2033, tokenised real estate is projected to make up 7 per cent of Dubai’s property market, or Dhs60bn ($16bn).

Further protection for investors is provided by a dedicated Client Money Account (CMA) system overseen by the Central Bank, which holds investors’ funds until property purchases are completed from the property seller.

The initiative supports the objectives of the Dubai Real Estate Sector Strategy 2033 and the Dubai Economic Agenda D33, which aim to position Dubai as the world’s leading smart city for real estate investment.

All tokenised offerings during the pilot phase must come from companies licensed by VARA to provide cryptocurrency and blockchain services in the Mena region.

Currently, two firms — Prypco and Ctrl Alt — are authorised by VARA to provide these services.

Investors will benefit from both rental income on the property and capital gains from any increase in the value of the tokenised shares. They will also receive legal documentation of their ownership rights from DLD.

The project is part of DLD’s broader Real Estate Evolution Space Initiative (REES), which promotes the integration of proptech and artificial intelligence into the real estate sector.