Real estate tokenization consolidates Dubai’s position as a global hub for real estate technology and artificial intelligence, Expert

–Real estate tokenization offers numerous advantages, most notably enhanced liquidity.

-Blockchain technology provides  high standards of transparency and security.

-Smart contracts contribute to the automation of processes such as rent collection, profit distribution, and asset management.

-We expect a boom in partnerships between fin-tech companies and real estate developers in Dubai.

Waleed Al Zarooni

Dubai, United Arab Emirates

Wednesday, June 11, 2025

W Capital, a Dubai-based leading real estate brokerage, has confirmed that real estate tokenization technology positions the emirate at the forefront of the global scene as an advanced hub for real estate technology and artificial intelligence applications.

 Dubai is pioneering regulatory and operational steps towards adopting the latest digital transformation solutions.

The brokerage’s recent report  confirmed that real estate tokenization represents a qualitative shift in the way real estate assets are owned and traded, by converting ownership rights into small digital tokens using blockchain technology.

 These tokens represent shares in the property that can be easily traded on digital platforms, enhancing liquidity and lowering traditional entry barriers.

W Capital report noted that this technology opens the door to real estate investment to a wider range of investors, including individuals and small investors, through a more transparent, efficient, and secure investment model supported by smart contracts that facilitate operations and ensure automatic implementation of terms without the need for intermediaries.

“Real estate tokenization offers numerous advantages, most notably enhanced liquidity, as investors can buy and sell shares quickly and easily, opening up broader opportunities for investment diversification,” said Walid Al Zarooni, W Capital CEO.

“Real estate tokenization also allows for small investments, allowing new categories of investors to enter the real estate market. This technology also contributes to more effective diversification of investment portfolios by owning tokens representing portions of different properties across multiple locations and sectors,” he added.

 Blockchain technology provides a high degree of transparency and security by recording all transactions on a distributed network that enables efficient tracking and documentation of ownership. Smart contracts can also automate processes such as rent collection, profit distribution, and asset management, reducing the need for intermediaries and ensuring speed and accuracy of execution.

Al Zarooni noted that Dubai is proving its leadership in the field of real estate digital transformation, thanks to its advanced digital infrastructure and flexible regulatory frameworks, making the emirate an ideal environment for the growth of future-tech-driven real estate investments.

Al Zarooni highlighted the growing market momentum in  real estate tokenization, citing the signing of a memorandum of understanding between India’s Nice Finance and Leasing  and Dubai’s Toyo platform to tokenize real estate assets worth up to $500 million. This step coincides with the Dubai Land Department’s announcement of its official real estate tokenization project, in addition to MAG Group’s plans to tokenize real estate assets worth $3 billion. Al Zarooni noted that real estate tokenization provides broader opportunities for new segments of investors, strengthening Dubai’s position as a global capital for technology-enabled real estate investment.

The CEO expects the next few months to witness further collaboration between fin-tech companies and real estate developes, with the aim of accelerating the adoption of real estate tokenization on a wider scale.

 These expectations come in light of the significant support provided by Dubai’s regulatory authorities, which help to provide the necessary legal and technical frameworks to enhance the reliability and efficiency of this new investment model.

Al Zarooni believes that the emirate has all the capabilities to become a leading global destination for digital real estate, especially with the growing interest of global investors in smart solutions that allow them to diversify their portfolios without being exposed to the risks of traditional ownership. Furthermore, the adoption of technologies such as artificial intelligence and data analytics will contribute to improving user experiences and providing more accurate investment recommendations tailored to their financial goals.