Dubai: DLD, VARA ink key agreement to integrate property tokenisation
This move positions Dubai at the forefront of integrating virtual assets into the real estate sector
The Dubai Land Department (DLD) and the Dubai Virtual Assets Regulatory Authority (VARA) have signed a landmark collaboration agreement aimed at linking property registries with property tokenisation, enhancing market liquidity and efficiency in real estate management.
The agreement, the first of its kind globally, will incorporate a governance system that ties Dubai’s property registry with property tokenisation.
This will not only streamline real estate transactions but also provide a framework for regulatory clarity and safeguard investor rights in the evolving digital landscape.
DLD-VARA collab to strengthen Dubai’s global real estate position
The collaboration follows the successful launch of the pilot phase of the ‘Real Estate Tokenisation Project’ by DLD, part of the broader ‘REES Real Estate Innovation Initiative’.
The agreement aims to bolster the legal framework and regulations in real estate transactions, ensuring investor protection while fostering a more inclusive investment environment.
Marwan bin Ghalita, director general of the Dubai Land Department, said: “This partnership is a strategic step toward empowering the real estate sector by leveraging technological advancements. It aligns with the Dubai Real Estate Strategy 2033 and the Dubai Economic Agenda (D33), aiming to enhance Dubai’s global leadership in real estate innovation.”
The integration of virtual assets into real estate transactions is expected to improve liquidity and offer new investment opportunities, particularly for smaller investors, while contributing to the sector’s sustainability.
Support for Dubai’s strategic vision
The collaboration is set to play a pivotal role in achieving the objectives of Dubai’s D33 economic agenda, which aims to double the city’s GDP by 2033.
The agreement aligns with D33’s goal of reaching Dhs1tn in real estate transactions, with the sector growing by 70 per cent in value.
Helal Al Marri, director general of the Dubai Department of Economy and Tourism (DET) and Dubai World Trade Centre Authority (DWTCA), remarked: “This partnership embodies Dubai’s future-focused innovation. By linking real estate and virtual assets, DLD and VARA will help shape the next generation of economic growth, ensuring that Dubai remains a global leader in both sectors.”
The initiative will also serve as a framework for pilot projects, assessing and managing risks while fostering the integration of virtual assets into the real estate sector to maximise economic benefits.
It aims to create new opportunities for fractionalised ownership and enhance investor participation.
Advancing digital infrastructure
The agreement places a strong emphasis on enhancing Dubai’s digital infrastructure, addressing investor needs, and aligning with global best practices for consumer protection and investment security.
It also encourages collaboration with technology companies looking to contribute to the sector’s advancement.
“This collaboration reinforces Dubai’s commitment to fostering a diverse and advanced investment ecosystem,” Al Marri added. “It sets the stage for the future economy, where real estate and virtual assets coexist, driving sustainable growth and making Dubai a knowledge-driven, technology-based leader.”
The DLD and VARA’s partnership is poised to establish a regulatory model for integrating virtual assets with real-world assets, opening new doors for innovation in the real estate market.
