To keep pace with the rising interest in real estate tokenization, Dubai has strategically positioned itself to unveil a groundbreaking investment opportunity in the region. The Dubai Land Department (DLD) has recently announced a first-of-its-kind initiative for investors looking to engage in this emerging sector.
The DLD revealed in its official statement that residents of the UAE can now invest in tokenized real estate projects via the Prypco Mint platform, an investment initiative powered by blockchain technology.
Prypco Mint is a collaborative project involving several key entities including Dubai’s Virtual Assets Regulatory Authority (VARA), Dubai Future Foundation (DFF), and the Central Bank of the United Arab Emirates (CBUAE). Currently in its pilot phase, this innovative venture is in partnership with Zand Digital Bank, ensuring that the integration of digital assets adheres to the highest regulatory standards.
For investors wishing to participate, holding a national ID will be essential, providing an accessible entry point to invest in tokenized real estate projects throughout Dubai. Once the pilot phase concludes, plans are in place to expand this initiative beyond the local market, both regionally and globally.
As stated in the press release, “The platform enables users to generate returns and own a share in a prime real estate project in Dubai.” With a minimum investment threshold set at AED 2,000 (approximately US$544), the Prypco Mint platform is designed to provide opportunities for a broad range of investors. Notably, while it leverages blockchain technology, all transactions on the platform will operate in UAE Dirhams rather than in cryptocurrency or other digital assets.
The groundwork for tokenized real estate options was laid as early as April, with both the DLD and VARA establishing a regulatory framework to facilitate this offering. By mid-May, VARA updated its regulations, allowing real-world asset (RWA) tokens to be traded on secondary markets, providing much-needed regulatory support for Prypco Mint.
Looking ahead, the project is set to support the secondary trading of tokens, significantly enhancing liquidity in the market. This new model not only elevates compliance standards but also democratizes access to high-value real estate markets, allowing a diverse range of smaller investors to own fractional shares in prestigious properties across Dubai.
According to the DLD, tokenized real estate could account for 7% of Dubai’s overall real estate market by 2033, with the niche anticipated to reach a valuation of AED 60 billion (around US$16 billion). Furthermore, a Deloitte report forecasts that the global spread of tokenized real estate could surge to a staggering $4 trillion valuation by 2035. This growth is likely to be fueled by governmental agencies entering the space, as evidenced by movements in countries like Nigeria and Israel, which are already integrating tokenization into their land registry frameworks.
Air Arabia Embraces Dirham-Backed Stablecoin
In a parallel development, Air Arabia has announced plans to accept AE Coin, a dirham-backed stablecoin, for various transactions including flight bookings. This significant move makes Air Arabia the first regional airline to adopt stablecoin technology, thereby embracing the growing digital economy across the Middle East.
To facilitate this integration, the airline is collaborating with digital banking powerhouse Al Maryah Community Bank (Mbank), which will support AE Coin transactions for flight bookings through its AEC Wallet app. The stablecoin, which was launched in late 2024, has received the green light from the UAE’s financial regulators and is pegged at a 1:1 ratio with the dirham.
By providing stablecoin payment options, Air Arabia aims to cater to an evolving customer base that increasingly values flexibility and convenience when booking travel. Adel Ali, the group chief executive of Air Arabia, remarked that this initiative reflects the airline’s commitment to adopting innovative solutions that enhance value for their customers.
Customers wishing to utilize stablecoins for their travels will need to download the Mbank AEC Wallet and can fund their accounts through established payment methods. The incorporation of stablecoins not only allows for reduced transaction fees but also offers the added benefit of price stability, crucial for both the airline and its customers.
“The rollout of AE Coin for flight bookings is designed to streamline the payment experience for our passengers, presenting them with a frictionless cashless solution that aligns perfectly with the burgeoning digital economy,” stated Ramez Rafeek, General Manager of AE Coin.
This progressive leap follows the introduction of regulations governing stablecoins in the UAE. In 2024, officials endorsed the establishment of dirham-backed stablecoins, prompting various enterprises to pursue innovative payment solutions, including the launch of the Abu Dhabi International Holding Company’s own dirham-backed stablecoin.
As the UAE steps up its efforts to revolutionize its financial ecosystem using emerging technologies, regulators have also permitted stablecoin projects backed by the U.S. dollar, such as USDC. Furthermore, the Central Bank is actively researching and exploring the viability of a digital dirham, aiming for a potential commercial launch later this year.
