Emirates: Following the launch of the pilot phase of the ‘Real Estate Tokenisation,’ one of the initiatives under the umbrella of the ‘REES Real Estate Innovation Initiative,’ Dubai Land Department (DLD) and the Dubai Virtual Assets Regulatory Authority (VARA) signed a collaboration agreement aimed at enhancing Dubai’s global position as a leading hub for investment and innovation in the real estate sector. 

This agreement seeks to improve the regulatory environment related to virtual assets in real estate transactions In line with the strategic directives of the UAE and the vision of its leadership to position Dubai as a global hub for innovation and investment.

This agreement, the first of its kind on a global scale in linking the real estate registry with property tokenisation through a governance system that enhances market liquidity and improves the efficiency of property management companies, was signed in the presence of Marwan bin Ghalita, Director General of the Dubai Land Department, and Helal Al Marri, Director General of the Dubai Department of Economy and Tourism. The agreement was signed by Majid Al Marri, Executive Director of the Real Estate Registration Sector at DLD, and Matthew White, CEO of VARA.

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. Additionally, it focuses on 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 expected to play a significant 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 Dh1 trillion in transactions, growing by 70% in value.

As Dubai experiences increasing demand for innovative real estate solutions, this agreement serves as a framework for coordinating efforts between DLD and VARA to strengthen 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 maximise economic benefits.

The agreement also emphasises enhancing digital infrastructure in the real estate sector to meet investor needs. It includes 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 encourages cooperation with technology companies interested in contributing to the development of Dubai’s real estate sector through virtual asset integration.

Helal Almarri, DG of DET and DWTCA commented: “This partnership reflects the future-focused innovation that is Dubai’s DNA – guided by our leadership, it is engrained in the way regulatory and legislative policy makers enable the next stage of economic growth. Real Estate and Virtual Assets are key pillars of the D33 Economic Agenda D33 and by joining forces DLD and VARA will be creating the blueprint for RE 2.0 in a Decentralised Future Economy. 

Eng. Marwan bin Ghalita, Director General of the Dubai Land Department, stated:  “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 centralisation, 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 underscores Dubai’s commitment to fostering 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.