In the United Arab Emirates (UAE), real-world asset tokenization is picking up speed as business people get ready to meet the growing demand for trading assets on the blockchain.
Tokenizing RWA means turning financial and other real assets into blockchain-based tokens. The process makes assets that aren’t usually easy to sell more accessible and liquid. On February 3, the total value of on-chain RWAs hit an all-time high of $17 billion. This amount makes the sector a key investment story for 2025.
As RWA tokenization grows, more assets are being tokenized in the UAE, which is a regional hub for the sector. A crypto media outlet talked to Scott Thiel, founder and CEO of Tokinvest, an RWA platform regulated by the UAE. He said that there is “no lack of demand” for RWAs.
Thiel stated that the demand comes from developers and big property owners who are looking into how to use tokenization to sell their assets. Thiel told the media that they all want to look into how they can use the technology as an alternative way to finance or sell their property.
Real Estate Drives UAE On-Chain RWA Adoption
According to Thiel, one of the main sectors employing RWA tokenization in the UAE is real estate. He said that the activity was only happening due to the country’s strong real estate market, particularly in Dubai.
“Everyone dreams of a home.” Which housing market is the hottest worldwide? Right now I believe it’s most likely Dubai because everyone wants a piece of it or access to the financial possibilities in that market.
As of January 9, RWA blockchain company Mantra agreed to tokenize properties owned by the Damac Group which is one of the biggest companies in the UAE. The deal was worth $1 billion. The deal makes sure that until 2025, Damac’s tokenized assets will only be available on the Mantra chain.
The Virtual Asset Regulatory Authority (VARA) gave Mantra its license on February 19, which lets it do business in the Middle East and North Africa (MENA) region.
This is what OKX MENA CEO Rifad Mahasneh said about the UAE:
There was a significant growth in the tokenization of real estate assets.” When asked which industries use RWAs the most, the executive said “Without a doubt, it’s real estate.
“We are seeing interest and pick-up in core industries in the UAE, including fashion finance and venture capital (VC) industries, as well as real estate, which has been in a boom phase for several years now,” Mahasneh said.
The executive said this is mostly because of how real estate is changing. Because crypto and RWAs are becoming more popular, the CEO of OKX MENA said it was only natural for the two fields to merge.
Mahasneh, on the other hand, said he thinks RWA tokenization will grow and spread to other fields. “Adding blockchain technology to assets like carbon credits or intellectual property and tokenizing them is where the real value lies, he said.
Regulatory Support “De-Risked” Many Web3 Activities
Thiel, who helped create VARA’s rules in 2022, said that the UAE is unique because it is proactive about regulating digital assets. He said that many places around the world are still having trouble making clear rules for tokenized assets.
It has been difficult to figure out how to legally and correctly bring a tokenized RWA to market. And that’s the problem I’ve had in many places, like Hong Kong, Singapore, the US, Canada, the UK, mainland Europe, and more.
He said that people in the UAE want to make rules that are easy to follow. This is why the founder of Tokinvest moved to the area. Tokinvest got its full market license for its RWA platform from VARA on January 14.
In addition, Thiel said that the UAE’s eagerness to make the industry’s rules clearer “de-risked” many crypto activities in the area.
Mahasneh agreed and emphasized the benefits of doing business in the UAE. He said, “There is a forward-thinking regulatory approach that lets organizations use RWAs in more ways.”
