UAE's $17B RWA market fuels regulatory innovation

The United Arab Emirates (UAE) is emerging as a hub for real-world asset (RWA) tokenisation, driven by proactive regulations and increasing demand for blockchain-based asset trading.

As of February 3, 2025, onchain RWAs reached $17 billion, solidifying the sector's role in crypto investment.

The UAE's Securities and Commodities Authority (SCA) is drafting regulations to establish a legal framework for issuing and trading tokenised assets.

The goal is to balance innovation and market protection, making the country a hub for digital finance.

The authorities are examining key aspects such as compliance requirements for token issuers, investor protection and transparency in transactions, and rules for the custody and exchange of tokenised assets.

According to Scott Thiel, founder and CEO of Tokinvest, there is "no lack of demand" from real estate developers and asset owners interested in tokenisation.

Thiel noted that the UAE stands out for its clear guidelines on tokenised assets, which have "de-risked" Web3 activities.

Real estate is leading RWA adoption, particularly in Dubai, where the property market is booming.

In January, Mantra (CRYPTO:OM) signed a $1 billion deal with Damac Group to tokenise properties.

Mantra also received a license from the Virtual Asset Regulatory Authority (VARA), facilitating expansion into the Middle East and North Africa (MENA).

OKX MENA CEO Rifad Mahasneh confirmed the "significant growth in tokenisation of real estate assets" in the UAE.

Mahasneh believes that RWA tokenisation will diversify and expand to other industries, such as carbon credits and intellectual property.