(MENAFN- The Arabian Post)

Dubai has initiated a pilot programme to tokenise property ownership, marking a significant advancement in its property sector. The Dubai Land Department , in collaboration with Prypco, has launched the 'Prypco Mint' platform, enabling fractional property investments through blockchain technology.

This initiative positions Dubai as the first city in the Middle East and North Africa region to implement a licensed platform for real estate tokenisation. The project is being developed in partnership with the Virtual Assets Regulatory Authority , the Central Bank of the United Arab Emirates, and the Dubai Future Foundation through the Real Estate Sandbox. Zand Digital Bank has been appointed as the banking partner for the project's pilot phase.

The DLD anticipates that the tokenised real estate market could reach AED 60 billion by 2033, representing about 7% of Dubai's total real estate transactions. By converting real estate assets into digital tokens recorded on blockchain technology, the initiative aims to simplify and enhance the processes of buying, selling, and investing in property.

Fractional ownership through tokenisation allows multiple investors to co-own a single property, lowering the entry barriers for real estate investment. This approach is expected to attract a broader range of investors, including those who may not have had access to the market previously. The project also seeks to promote transparency and governance in the property sector.

VARA is closely monitoring the tokenisation efforts to ensure consumer protection, especially as fractional ownership brings in new capital and retail investors. The regulatory body is focused on addressing key questions related to the nature of the tokens, ownership rights, trading mechanisms, and liquidity provisions to safeguard investor interests.

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The pilot phase includes a specialised workshop on real estate tokenisation, bringing together leading proptech companies and experts in asset tokenisation. The DLD plans to assess the outcomes of the pilot thoroughly and use the insights gained to refine the project ahead of its full-scale implementation.

This initiative aligns with Dubai's broader economic strategies, including the Dubai Economic Agenda D33 and the Dubai Real Estate Sector Strategy 2033, which prioritise the adoption of digital solutions and the development of a smart, advanced economy driven by innovation and technology.

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