DAMAC Group has entered into a strategic partnership with blockchain firm MANTRA to tokenise real-world assets (RWAs) in the Middle East.

This alliance marks a significant step in driving the adoption of blockchain technology to enable fractional ownership and tokenised real estate investment opportunities.

With the real estate market in the Middle East continuing to grow, this collaboration aims to open up new avenues for investors to access previously untapped segments of the market, particularly by overcoming traditional barriers in real estate investment.

Key move for the DAMAC Group

The partnership will focus on token-based financing for a range of assets, spanning real estate, hospitality, data centres, and other critical sectors. The initiative targets assets with a minimum value of $1bn, leveraging DAMAC’s broad portfolio of companies.

Amira Sajwani, MD of Sales and Development at DAMAC Group, said, “We are always exploring new technologies to enhance our product offerings. Partnering with MANTRA is a natural extension of our commitment to innovation and forward-thinking solutions.

“Tokenising our assets will provide investors with a secure, transparent, and convenient way to access a wide range of investment opportunities.”

This strategic move aligns with DAMAC’s goal of opening up real estate investment opportunities in the Middle East, making it more accessible to a global pool of investors, and enabling fractional ownership for individuals who may have previously been excluded from high-value assets.

Tokenisation and blockchain technology to enhance investor access

The group’s assets will be available on MANTRA Chain in early 2025, exclusively through the blockchain platform.

This marks a critical development in integrating blockchain technology to enhance the transparency, security, and accessibility of DAMAC Group’s diverse assets.

The partnership is expected to be a game-changer in the way real estate is financed and invested in the region.

John Patrick Mullin, CEO and co-founder of MANTRA, highlighted the significance of the collaboration, stating, “This partnership with DAMAC Group is an endorsement for the RWA industry.

“We’re thrilled to partner with such a prestigious group of leaders that share our ambitions and see the incredible opportunities of bringing traditional financing opportunities onchain.”

The UAE’s real estate market continues to soar as property portal Property Finder reported impressive growth across Dubai and Abu Dhabi in 2024.

Both cities have experienced remarkable momentum, with Dubai achieving record-breaking transaction volumes and values, while Abu Dhabi also demonstrated strong performance despite a more modest market.

Cherif Sleiman, chief revenue officer at Property Finder, noted that 2024 “was a defining year for the UAE’s real estate sector, with record-breaking transactions”.

He added: “The momentum is expected to continue in 2025 as both Dubai’s off-plan market and Abu Dhabi’s property portfolio continue to grow. The launch of the Smart Rental Index by the Dubai Land Department is an example of how the UAE is raising the bar in transparency and trust.”

Here are the key highlights of 2024, as shared by Property Finder:

Dubai: Record-breaking year for real estate transactions

• Total transactions: 180,987, worth Dhs522.5bn.
• 36.5 per cent increase in transaction volume compared to 2023.
• 27.2 per cent increase in transaction value compared to 2023.
• Off-plan sales surged, comprising 60.5 per cent of all transactions, up from 43.6 per cent last year.
• Off-plan transaction volume increased by 60.6 per cent, reaching 109,527 transactions.
• Off-plan transaction value jumped by 43.5 per cent, totaling Dhs228.03 bn, up from Dhs159bn in 2023.

Abu Dhabi: Steady growth amid record performance

• Total transactions: 14,662, valued at Dhs47.92bn.
• 4 per cent increase in transaction volume from 2023.
• Residential properties accounted for 66 per cent of the transaction volume and 53 per cent of the total value.
• Existing property market showed impressive performance, with 53.4 per cent year-on-year growth in transaction volume, reaching 4,320 transactions.
• Existing properties had a total transaction value of Dhs9.27bn, marking a 34.7 per cent YoY increase.

Off-plan market: A dominant driver in Dubai and Abu Dhabi

• Dubai’s off-plan market saw substantial growth, making up 60.5 per cent of total transactions. Off-plan transactions reached 109,527 with a value of Dhs228.03 bn, marking the highest volume and value ever recorded in Dubai.
• Abu Dhabi’s off-plan market also performed well, with 5,385 transactions, accounting for 55.5 per cent of total transactions. The total value of off-plan sales in Abu Dhabi reached Dhs16.34bn, contributing to 63.8 per cent of the total residential sales value.

Existing/ready property market: Solid performance in both cities

• In Dubai, existing property transactions grew by 10.9 per cent, with 71,460 transactions. These transactions accounted for 39 per cent of total transactions, reaching a value of Dhs294.5 bn, a 16.9 per cent increase from 2023.
• Abu Dhabi’s existing property market saw significant growth with 53.4 per cent more transactions year-on-year, reaching 4,320 transactions valued at Dhs9.27 bn, a 34.7 per cent YoY increase.

Expert insights

Mark Richards, CEO of The Network, added that Dubai’s real estate market is poised for another strong year in 2025, driven by sustained demand, limited supply in key segments, and continued population growth.

He estimates that 50,000-60,000 new residents will arrive annually, while 41,000 new residential units are expected in 2025, though only 5,000 of these will be villas and townhouses, creating a notable supply gap in this high-demand segment.

Sam McCone, managing partner of McCone Properties, highlighted that private developers are focusing on high-quality real estate, refining design and craftsmanship to meet the evolving demands of buyers and tenants.

Abdullah Alajaji, MD of Driven Properties, noted the rising demand for affordable housing and smaller units, along with strong interest in luxury properties and off-plan developments, which indicates strong investor confidence moving into 2025.

Lebanese government bonds extended their three-month-long rally on Thursday as the crisis-ravaged country’s parliament voted in a new head of state for the first time since 2022.

Lebanese lawmakers elected army chief Joseph Aoun as president. It came after 12 failed previous attempts to pick a president and boosted hopes that the country might finally be able to start addressing its dire economic woes.

Its battered international bonds have almost trebled in value since September, when the regional conflict with Israel weakened Lebanese armed group Hezbollah, long viewed as an obstacle to overcoming its political paralysis.

Those bonds, which have been in default since 2020, rallied shortly after Aoun’s victory was announced and stood around 1.3 cents higher on the day at just over 16 cents on the dollar as local trading wound down.

One bondholder described Aoun’s election as “a very positive development” in the broader context of the ceasefire with Israel, the downfall of Bashar al-Assad in Syria and strong support for Lebanon both regionally and internationally.

“We expect the government formation to be relatively quick so they can start to work on reforms towards a deal with the IMF and banking sector restructuring,” said Ted Pincus at Switzerland-based fund Mangart.

With economic support from Saudi Arabia, UAE, France, the United States and others also on the table, “Lebanon’s future now looks a lot brighter,” he added.

Road to recovery

Lebanon’s bonds have risen steadily in recent months, although they remain some of the lowest-priced government bonds in the world, reflecting the scale of its difficulties.

With an economy and financial system still reeling from a collapse in 2019, Beirut is in dire need of international support to rebuild from the recent conflict, which the World Bank estimates to have cost the country $8.5bn.

Hasnain Malik, an analyst at financial research firm Tellimer, said Aoun’s victory was “the first necessary step on a very long road to recovery”.

Aoun now needs to appoint a prime minister and assemble a cabinet that can retain the support of parliament, resuscitate long-delayed reforms and help Lebanon secure international financial support.

On the downside, the voting process demonstrated that despite its weakened military capability, Hezbollah remains a key political force.

The 61-year-old Aoun fell short of the required support in Thursday’s first round of parliamentary voting and only succeeded in a second round, reportedly after a meeting with Hezbollah and Amal party MPs.

“That presents significant ongoing risk to any new PM and cabinet, which need to maintain the confidence of a majority of parliament,” Malik said.

Aldar Properties has successfully priced its inaugural $1bn hybrid capital issuance, attracting significant demand from a wide spectrum of regional and international investors.

The issuance marks a landmark achievement for Aldar, as it stands as the largest conventional hybrid in the Middle East.

The transaction, conducted at Aldar’s level, sets a new precedent for hybrid capital in the Central & Eastern Europe, Middle East, and Africa (CEEMEA) region, securing the highest rating and tightest credit spread for a corporate hybrid issuance in the region.

The issuance represents a proactive step in enhancing the company’s financial resilience, reinforcing its strong balance sheet while laying the groundwork for continued growth and strategic expansion.

Proceeds from the hybrid issuance will support Aldar’s transformation strategy, including replenishing its landbank, expanding its “develop to hold” portfolio, and facilitating acquisitions.

The issuance garnered impressive demand, being oversubscribed by 3.8 times, with total orders surpassing $4.9bn from institutional investors across diverse regions.

The final allocation saw significant interest from the Middle East and North Africa (41 per cent), the UK (38 per cent), Europe (9 per cent), North America (8 per cent), and Asia (4 per cent).

Investor confidence in Aldar’s growth story

The company’s group chief financial and sustainability officer, Faisal Falaknaz, expressed his satisfaction with the strong demand, noting that it reflects investor confidence in the company’s vision and strategic direction. “The strong appetite for this issuance from a broad base of international institutional investors is a statement of confidence in Aldar’s vision and strategic direction,” he said.

“The company has carved a credible and proven track record of delivering measured and sustainable growth, and this landmark hybrid issuance supports the continued execution against our growth ambitions,” Falaknaz added.

The company’s growth strategy, focused on landbank expansion, acquisition opportunities, and maintaining a strong financial foundation, is now further strengthened by this hybrid issuance, designed to optimise its capital structure while positioning the company for long-term value creation for all stakeholders.

Hybrid issuance: Key features

The hybrid issuance consists of unsecured, subordinated 30.25-year notes, offering investors an initial yield of 6.625 per cent.

These notes come with a non-call period extending to 7.25 years, providing additional flexibility.

Coupon payments, which are distributed semi-annually, can be deferred for up to five years, with both cumulative and compounding features, adding further flexibility to Aldar’s capital structure.

In January, Moody’s reaffirmed Aldar’s Baa2 credit rating with a stable outlook and assigned a standalone credit rating of Baa3 to the hybrid notes. The rating reflects Aldar’s robust financial standing and strong market position.

The hybrid issuance is treated as both debt and equity for ratings purposes, contributing to its financial flexibility while being non-dilutive and accretive for its equity investors.

Strategic use of proceeds and optimisation of debt profile

The proceeds from the hybrid issuance will be strategically used to pay down senior debt, further enhancing the company’s overall credit profile.

This approach preserves debt capacity for its growth pipeline, ensuring the company is well-positioned to execute its ambitious plans for expansion and value creation.

The issuance was marketed under Regulation S and led globally by Citi, with Abu Dhabi Commercial Bank, Bank of China, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, J.P. Morgan, Mashreq, National Bank of Ras Al Khaimah, and Standard Chartered serving as joint lead bookrunners.

As Aldar continues to scale its operations and strengthen its market presence, the success of this hybrid issuance underscores the growing investor confidence in its ability to deliver on its transformational growth strategy.

Artificial intelligence has now graduated from an academic ponderance to an inescapable juggernaut. Its potential for a business, regardless of industry, is enormous. We can see it make its mark in retail, banking, and healthcare. It also has a role to play in security, both digital and physical. It can enhance analytics capabilities, improve threat detection, and support predictive maintenance.

One study from McKinsey suggests AI could pump some $150bn, or 9 per cent of combined GDP, into GCC economies. HID’s State of Physical Access Trend Report reveals more than a third (35 per cent) of organisations worldwide will be testing or implementing some sort of AI capability in the next five years.

In the course of our research, we heard from more than 1,200 enterprise decision-makers around the world and identified the use of AI as one of five main trends currently dominating the physical security segment.

The prevailing perception about AI is that it is here to stay and there is no going back, so enterprises must adopt it to remain relevant. But none of that means AI has reached some sort of ceiling of maturity – certainly not in the GCC where AI skills gaps persist.

What it does mean is that, as skills gaps are gradually filled, more use cases become viable. That is why we are seeing a movement toward AI in physical access control.

Thirty-eight per cent of respondents said they were looking to incorporate AI into their access-control solutions, although the same percentage admitted they were unsure of the benefits. But it is also worth noting that less than a quarter (23 per cent) said they had no plans to incorporate AI.

We found that many security professionals see AI’s strengths in analytics as low-hanging fruit, so rather than opting for an AI-centric security system, they are looking for ways to have AI-driven analytics enhance existing or future solutions. So, as mentioned previously, 35 per cent of respondents said they would test or implement some form of AI in the next five years. Some 15 per cent already use AI-enabled biometrics.

AI: A powerful partner

AI is a powerful partner in digitalisation, from automation of the day-to-day grind of a knowledge worker to the enhancement of future-gazing for finance professionals. And engineers. In the physical world, things break.

However, the costs of repair are largely predicated on the ability to catch the problem early. If we keep enhancing that capability enough, we can replace minor components before equipment failure and save significant expenditure on replacements.

This advanced condition monitoring made possible by AI and machine learning gives rise to predictive maintenance. Remember that a point of failure in, say, a manufacturing capability is bad enough, but if we imagine the same in a physical access ecosystem, the consequences could be well beyond those of lost capacity or missed deadlines.

The same AI that monitors temperature, power, and rotation speeds looking for deviations from norms in physical equipment can do the same in a digital setting.

Pattern matching is orders of magnitude more efficient with AI than with human observers. AI-driven physical security will come to dominate in a world where, with due diligence, AI can make everything better