Following the launch of the pilot phase of the ‘Real Estate Tokenization,’ one of the initiatives under the umbrella of the ‘REES Real Estate Innovation Initiative,’ the Dubai Land Department (DLD) and the Dubai Virtual Assets Regulatory Authority (VARA) have signed a collaboration agreement. This agreement aims to promote Dubai’s global standing as a premier hub for investment and innovation within the real estate sector. Its primary objective is to enhance the regulatory environment associated with virtual assets in real estate transactions, aligning with the strategic directives of the UAE and the vision of its wise leadership to position Dubai as a global center for innovation and investment.
This agreement, which is the first of its kind worldwide in linking the real estate registry with property tokenization through a governance system that enhances market liquidity and improves the efficiency of property management companies, was signed in the presence of His Excellency Marwan bin Ghalita, director general of the Dubai Land Department, and His Excellency Helal Al Marri, director general of the Dubai Department of Economy and Tourism. The agreement was also endorsed by Majid Al Marri, executive director of the Real Estate Registration Sector at DLD, and Matthew White, CEO of VARA.
Empowering the real estate sector and virtual asset integration
The agreement aims to enhance legal frameworks and regulations to keep pace with future developments, ensuring investor rights and compliance with evolving requirements in Dubai’s investment and real estate landscape. Furthermore, it emphasizes increasing investment opportunities and streamlining access to Dubai’s real estate market for small investors, thereby contributing to the growth and sustainability of the sector.
This initiative aligns with Dubai’s commitment to fostering an advanced investment environment, ensuring regulatory compliance, and safeguarding investor rights under DLD’s jurisdiction in collaboration with VARA.
Supporting Dubai’s strategic goals and the D33 agenda
The collaboration is anticipated to play a pivotal role in achieving the objectives of Dubai’s real estate strategy 2033 and the broader Dubai Economic Agenda (D33). The agreement aligns with D33’s goal of doubling Dubai’s GDP over the next decade, with the real estate sector contributing to reaching AED 1 trillion in transactions, growing by 70 percent in value.
As Dubai faces escalating demand for innovative real estate solutions, this agreement serves as a framework for coordinating efforts between DLD and VARA to fortify Dubai’s position as a premier investment destination. It will also facilitate pilot projects that assess and manage risks while enabling the integration of virtual assets into the real estate sector to maximize economic benefits.
Advancing digital infrastructure and investor awareness
The agreement also underscores the importance of enhancing digital infrastructure in the real estate sector to meet investor needs. It encompasses initiatives to increase awareness and understanding of virtual asset regulations while ensuring alignment with global best practices for consumer protection and investment security.
Additionally, the collaboration drives cooperation with technology companies interested in contributing to the advancement of Dubai’s real estate sector through virtual asset integration.
HE Helal Almarri, DG of DET and DWTCA, remarked: “This partnership reflects the future-focused innovation that is Dubai’s DNA – guided by our leadership, it is ingrained in the way regulatory and legislative policymakers enable the next stage of economic growth. Real Estate and Virtual Assets are key pillars of the D33 Economic Agenda, and by joining forces, DLD and VARA will be creating the blueprint for RE 2.0 in a Decentralised Future Economy.”
“This Collaboration Agreement seeks to champion a future-ready model that can allow for more inclusive economic participation, with legal safeguards to recognize fractionalized ownership rights. Beyond assuring market integrity, we see the provision of regulatory clarity as foundational to unlocking sustainable opportunities for GDP expansion – particularly leveraging virtual assets across the full spectrum of Real-World asset sectors.”
Strategic step for innovation
His Excellency Eng. Marwan bin Ghalita, director general of the Dubai Land Department, stated: “This agreement marks a strategic step towards leveraging technological advancements to empower the real estate sector. By strengthening collaboration with technology companies, we aim to position Dubai as a global leader in real estate innovation.”
He added: “Our partnership with the Dubai Virtual Assets Regulatory Authority aligns with the objectives of the Dubai Real Estate Strategy 2033 and the Dubai Economic Agenda D33, which reinforce Dubai’s global leadership in one of the most vital sectors. It also supports the priorities of this strategy, particularly in adopting the latest artificial intelligence technologies, enhancing data centralization, and providing a seamless investment experience that meets the aspirations of investors and companies while contributing to sustainable economic growth.”
Commitment to a future-ready investment environment
The collaboration highlights Dubai’s commitment to promoting a diverse and advanced investment ecosystem that enhances the competitiveness of the real estate sector. It also reinforces the emirate’s leadership vision of building a knowledge-driven, technology-based future economy.
