Together with the enthusiasm around real estate tokenization, Dubai seized the moment it launched its first offer for investors in the region.
The Lands Division of Dubai (DLD) said in an official statement that UAE-based investors can invest in tokenized real estate through Prypco Mint, an on-chain-built investment platform.
Prypco Mint is a joint project that includes Dubai's Virtual Asset Regulatory Authority (VARA), Dubai Future Foundation (DFF), and the United Arab Emirates Central Bank (CBUAE). Currently in the pilot phase, the project is partnering with Zand Digital Bank for this innovative initiative.
Investors who hold national IDs will be allowed to participate in the initiative and will invest in tokenized real estate projects across Dubai. After the pilot stage is completed, the authorities will expand the project locally and globally.
“This platform allows users to generate returns and own shares in major real estate projects in Dubai,” read the press release.
By participating in the initiative, investors will have access to tokenized stocks in Dubai-based properties, at a minimum of 2,000 (USD 544). Despite its dependence on blockchain, transactions on the platform are entirely made in the UAE Dirham, not in digital assets.
Planning for the tokenized property has been in work since early April, with DLD and Vara creating regulatory courses offered. In mid-May, VARA updated the rules to allow real-world asset (RWA) tokens to be traded in the secondary market and provided regulatory assistance for Prypco Mint.
Going forward, the project will support secondary trading of tokens and improve overall liquidity. Apart from rising compliance standards, tokenized properties offer fractional ownership, allowing a wide range of retail investors to dabble in Dubai's high-end real estate market.
According to DLD, the tokenized real estate industry will grow to account for 7% of Dubai's real estate market by 2033. The report pins the rating of the niche, which has grown at AED 60 billion (US$16 billion) in 2033.
The Deloitte Report predicts the global tokenized real estate market to reach a $4 trillion valuation in 2035. The next spike will be supported by government agencies towards the niche as Nigeria and Israel have already integrated into the land registration business.
Air Arabia walks with Dirham-assisted Stablecoin
Meanwhile, Air Arabia has confirmed its plans to accept Dillaham-assisted Stablecoin, AE Coin, for flight bookings and other grants.
The company is working with digital banking giant Al Maryah Community Bank (MBANK) to support AE coin payments. Stablecoin payments will be processed through Mbank's AEC wallet app, solidifying the location of Air Arabia as the first regional airline to adopt Stablecoins.
Released in late 2024, Mbank's AE Coin will sign final approval from the UAE financial regulator and will maintain a 1:1 peg in Dirham.
For Air Arabia customers, integrating Stablecoins into flight bookings offers many benefits. Adel Ali, CEO of Air Arabia's group, has revealed that the Stablecoin option will accommodate clients' demographics and offer perks of flexibility and convenience.
“New payment options introduced through AEC wallets reflect our ongoing commitment to adopting smart solutions that bring great value, choice and flexibility to our growing customer base,” Ali said.
Consumers keen to book flights using Stablecoins should download Mbank's AEC wallet and fund the wallet using existing payment options. Apart from the perks of flexibility, Stablecoin also offers low transaction fees and price stability.
“By integrating AE Coin into flight bookings, we simplify traveler payment experiences and enable a seamless cashless solution that aligns with the growing digital economy,” said Ramez Rafeek, general manager of AE Coin.
The latest products follow the development of clear Stablecoin regulations in the UAE. In 2024, authorities gave a green light for Dirham-supported stubcoins, seizing the opportunity for several entities to launch their products.
The Abu Dhabi International Holdings Company and other UAE-based entities have cooperated to float Dhiraham-supported stubcoins.
The United Arab Emirates is doubling its efforts to revolutionize the financial environment with emerging technologies. Apart from Dirham-supported stubcoin, the country's regulators nodded to US dollar-supported stubcoin products like USDC after the watertight licensing process.
In addition to pursuing stubcoin, the central bank is also investigating the feasibility of digital dirhams to enhance existing payment options. The central bank hints at the commercial expansion of digital dirhams in the last quarter of the year, months after the central bank's digital currency (CBDC).
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