UAE Witnesses US$3 Billion Real Estate Tokenization: Dubai’s Sandbox Model Draws Global Attention

Dubai’s real estate tokenization sandbox and a record US$3 billion deal reshape property investment in the UAE. Learn how the regulatory model is driving liquidity and access.

In early 2025, the United Arab Emirates (UAE) achieved a global milestone in property technology with the tokenization of US$3 billion worth of real estate, led by MAG Group in collaboration with MultiBank Group and Mavryk. At the same time, the Dubai Land Department (DLD) launched its Real Estate Tokenization Sandbox, providing a regulatory environment for experimenting with blockchain-based property ownership. These developments mark the UAE’s strategic push to revolutionize real estate investment by integrating blockchain technology within a comprehensive legal and institutional framework.

World’s largest real estate tokenization deal

In a landmark transaction, UAE-based developer MAG signed a US$3 billion agreement with MultiBank Group and blockchain infrastructure firm Mavryk to tokenize high-end properties, including The Ritz-Carlton Residences, Dubai, Creekside and Keturah Reserve. These properties will be digitized on MultiBank.io’s regulated RWA (real-world asset) marketplace, allowing global investors to access Dubai’s real estate market through blockchain tokens.

The initiative is anchored by MultiBank Group’s $MBG token, which will power user access, staking, fee payments, and platform governance. Token holders will earn daily yield and enjoy tiered benefits such as discounted fees and launchpad participation. The transaction includes a buyback-and-burn mechanism tied to platform revenues, encouraging long-term holding. According to MAG’s senior executive vice chairman Talal Moafaq Al Gaddah, this initiative enhances liquidity and stakeholder transparency in the property sector.

Mavryk CEO Alex Davis noted the model transforms landmark developments into borderless, liquid investment opportunities. The goal is to scale the platform to US$10 billion, bringing institutional-grade assets to a globally accessible and digitally compliant environment.

Regulatory sandbox and legal ecosystem

The deal follows the March 2025 launch of Dubai Land Department’s (DLD) Real Estate Tokenization Project, developed in partnership with the Dubai Future Foundation (DFF) and the Virtual Assets Regulatory Authority (VARA). The initiative, housed under the Real Estate Evolution Space (REES) program, positions DLD as the first property registration authority in the Middle East to tokenize title deeds.

DLD ensures tokenized assets comply with Dubai’s property laws; VARA regulates issuance, custody, and trading of virtual assets; and the Central Bank of the UAE integrates the financial oversight. Dubai Law No. 4/2022 establishes VARA’s role, and Administrative Decision No. 1/2023 sets grievance procedures. DFF connects startups with regulators, ensuring alignment with national innovation policy.

Why this matters for investors and the real estate market

This tokenization framework addresses long-standing market limitations:

• Fractional ownership lowers the barrier to entry for high-value real estate;
• Increased liquidity allows investors to trade tokens more easily than conventional property shares;
• Smart contracts reduce reliance on brokers, notaries, and escrow agents, lowering transaction costs;
• Global accessibility opens Dubai’s property market to international investors; and
• Blockchain transparency enhances security, auditability, and investor confidence.

Moreover, programmable smart contracts can automate rental income distribution to token holders in real time, enhancing operational efficiency.

Strategic context and expansion outlook

This tokenization initiative aligns with Dubai’s Real Estate Sector Strategy 2033 and its broader Economic Agenda D33, both of which emphasize innovation-led growth. With an initial inventory worth US$3 billion, the platform is designed to scale up to US$10 billion in tokenized assets. Developers like Damac are also entering the space, with a separate US$1 billion tokenization project in partnership with blockchain platform MANTRA.

Unlike experimental models in Switzerland or the United States, Dubai’s initiative is grounded in a clear legal framework and coordinated regulatory backing. By focusing on real estate as a flagship sector, the UAE aims to create a globally recognized institutional-grade tokenized asset class.

Implications for the global property investment landscape

Dubai’s sandbox is more than a regulatory pilot, it is a transformative economic tool. It integrates public-private collaboration, legal certainty, and technological infrastructure to offer real estate investments with enhanced liquidity, reduced friction, and scalable cross-border reach. For international developers, technology firms, and asset managers, it provides a template for accessing Dubai’s real estate market in a digitally compliant manner.

Takeaway

With the launch of the US$3 billion tokenization deal, Dubai has not only modernized its property investment model but also signaled the maturity of its digital asset strategy. Through seamless integration of legal, financial, and blockchain frameworks, the UAE is establishing itself as a leading global hub for tokenized real estate. The initiative reflects a deliberate and structured effort to blend innovation with institutional integrity—offering a blueprint for real-world asset digitization.

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