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ubai's Land Department is pioneering a blockchain-based real estate revolution, breaking new ground in the Middle East. The initiative, launched in collaboration with Virtual Assets Regulatory Authority and Dubai Future Foundation, seeks to democratize access to property investments by harnessing the power of tokenization.

    By 2033, the department forecasts that tokenized real estate will account for a significant 7% of Dubai's total property transactions, valued at a staggering 60 billion dirhams ($16 billion). This ambitious goal reflects Dubai's commitment to becoming a global technology hub and its determination to stay ahead in the rapidly evolving landscape.

    The integration of blockchain into traditional markets is gaining momentum worldwide. Real-world assets like bonds, funds, and credit are being brought onto crypto rails, enabling fractional ownership and transferability on the blockchain. This innovation has the potential to lower entry barriers for investors and boost market liquidity.

    Unlike crowdfunding, which pools investor funds for property purchases, tokenization offers a more structured ownership model. However, real estate may face slower growth in adoption due to operational hurdles, according to a recent McKinsey report.

    The Dubai Land Department's director general, Marwan Ahmed Bin Ghalita, is confident that the initiative will "simplify and enhance buying, selling, and investment processes" in local real estate. As the project continues to evolve, technology firms are being engaged to refine and scale up the platform.