Investors can pay as little as Dh2,000 for a slice of Dubai's tokenised real estate project after the Dubai Land Department (DLD) officially launched the pilot phase on Sunday.
The sum will buy investors tokenised shares in ready-to-own properties in Dubai, with only UAE dirhams accepted for all transactions, the DLD said. Cryptocurrencies will not be accepted during the pilot phase.
Currently, only Emirates ID holders will be able to invest in the project before it opens up to international investors.
“The platform is set to expand globally in the near future, with additional platforms to be integrated in later phases,” the Dubai government body said.
The initiative is being implemented by Prypco Mint platform, in collaboration with Dubai's Virtual Assets Regulatory Authority (Vara), the UAE Central Bank and the Dubai Future Foundation (DFF) through the Real Estate Sandbox.
Zand Digital Bank has been appointed as the banking partner for the project’s pilot phase.
A partnership agreement between DLD, Prypco and Ctrl Alt Solutions will focus on attracting specialised asset tokenisation companies, while safeguarding investor rights.
While the pilot phase of the project includes only two authorised companies, Prypco and Ctrl Alt, there are plans to open the market to other qualified firms in the future, DLD said.
The project, announced in March, focuses on converting real estate assets into digital tokens recorded on blockchain, helping to streamline the process of buying, selling and investing.
Real estate tokenisation enables fractional property ownership, where each asset is divided into shares based on investors' budget and financial strategy. This allows investors to acquire a portion of a property without fully purchasing it.
Dubai’s real estate tokenisation market is forecast to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to government data.
Return on investments
Through the digital platform mint.prypco.com, investors can find information about property details ranging from pricing, risk factors, and technical specifications to the minimum investment required.
The real estate tokenisation project is jointly managed by the DLD, as the regulator of physical real estate assets, and Vara as the regulatory body for digital assets to ensure a transparent regulatory framework, the DLD said.
During the current phase, the CBUAE will oversee the opening of corporate accounts linked to real estate tokenisation through the Client Money Account (CMA), as part of a system designed to safeguard investor funds.
Under this system, an investor’s money is deposited into the CMA and not transferred to the tokenisation company until the purchase process is fully completed, to ensure security and transparency.
The project’s initial phase is limited to ready-to-own properties, and tokenisation is allowed only through companies licensed by the Vara, while DLD is responsible for reviewing and validating the fairness of property pricing before any listing is approved.
“Investors will benefit from both rental income and capital appreciation resulting from the property’s appreciation, while holding a legally documented ownership share issued by Dubai Land Department – ensuring a transparent and secure investment experience without the complexities of traditional property management,” the DLD said.
The latest announcement comes as Dubai’s property market continues to perform strongly amid government initiatives such as residency permits for retired and remote workers, the expansion of the 10-year golden visa programme and strong economic growth and diversification efforts.
The emirate recorded real estate deals worth Dh761 billion last year, up 20 per cent compared to 2023, with the total number of transactions for the year increasing by 36 per cent to 226,000, according to data provided by the Dubai Media Office.
It also achieved a record in the sale of homes valued at more than $10 million last year, real estate consultancy Knight Frank said in a report last month.
The emirate recorded 435 home sales valued at more than $10 million, up from 434 home sales in 2023 in the same category, with the total value of deals reaching $7 billion.
Company%20profile
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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The past Palme d'Or winners
2018 Shoplifters, Hirokazu Kore-eda
2017 The Square, Ruben Ostlund
2016 I, Daniel Blake, Ken Loach
2015 Dheepan, Jacques Audiard
2014 Winter Sleep (Kış Uykusu), Nuri Bilge Ceylan
2013 Blue is the Warmest Colour (La Vie d'Adèle: Chapitres 1 et 2), Abdellatif Kechiche, Adele Exarchopoulos and Lea Seydoux
2012 Amour, Michael Haneke
2011 The Tree of Life, Terrence Malick
2010 Uncle Boonmee Who Can Recall His Past Lives (Lung Bunmi Raluek Chat), Apichatpong Weerasethakul
2009 The White Ribbon (Eine deutsche Kindergeschichte), Michael Haneke
2008 The Class (Entre les murs), Laurent Cantet
Emergency phone numbers in the UAE
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
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Company Profile
Company name: NutriCal
Started: 2019
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Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
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