Real-world asset (RWA) tokenization is experiencing significant growth in the United Arab Emirates, as industry players seek to meet the rising demand for blockchain-based asset trading. This process involves converting financial and tangible assets into tokens on a blockchain, which enhances accessibility and liquidity for traditionally illiquid assets. As of February 3, the cumulative all-time high for onchain RWAs reached $17 billion, establishing the sector as a key narrative in crypto investments for 2025

With the increasing adoption of RWA tokenization, various players in the UAE are observing a surge in the number of assets being tokenized. According to MSN, Scott Thiel, founder and CEO of Tokinvest, a UAE-regulated RWA platform, explained that there is “no lack of demand” for RWAs. He indicated that many developers and major real estate asset owners are keen to explore how tokenization can serve as an alternative method for financing or selling their properties.

Real estate is leading the way in the adoption of RWA tokenization within the UAE, largely due to the rapid growth of the property market, especially in Dubai. Thiel remarked, “Everyone wants real estate. What’s the hottest real estate market in the world? Well, I think today it’s probably Dubai, and so, everyone would like to own a piece of this or to get access to the economic benefits of being a participant in that marketplace.”

On January 9, RWA blockchain firm Mantra signed a notable $1 billion agreement to tokenize properties owned by the Damac Group, one of the largest conglomerates in the UAE. This deal guarantees that Damac’s tokenized assets will be available exclusively on the Mantra chain throughout 2025. Furthermore, Mantra received its license from the Virtual Asset Regulatory Authority (VARA) on February 19, which enables it to expand its operations into the Middle East and North Africa (MENA) region.

Rifad Mahasneh, CEO of OKX MENA, highlighted the significant growth in tokenization of real estate assets in the UAE, asserting that the real estate sector is “absolutely” gaining more traction. He pointed out that industries such as fashion and finance, along with venture capital firms, are also experiencing increased interest in RWAs. Mahasneh noted that the convergence of the crypto and real estate sectors is a natural evolution given the rising interest in both fields.

Despite the current focus on real estate, Mahasneh believes that RWA tokenization has the potential to expand into other sectors. He expressed that the real opportunity lies in tokenizing assets like carbon credits or intellectual property and integrating those with blockchain technology.

Thiel, who played a role in shaping VARA’s regulatory framework in 2022, praised the UAE for its proactive stance on digital asset regulations. He noted that many global jurisdictions are still grappling with the development of clear guidelines for tokenized assets. Thiel stated, “The problem has been: how do I bring a tokenized RWA to market legally and compliantly?” He emphasized that the UAE’s commitment to establishing clear guidelines prompted him to relocate to the region, where Tokinvest received its full market license from VARA on January 14.

Thiel further explained that the enthusiasm of UAE regulators for providing clearer rules has “de-risked” many crypto activities in the area. Mahasneh echoed this view, underscoring the benefits of operating in the UAE due to its forward-thinking regulatory approach that facilitates the expansion of RWAs.

Additionally, John Patrick Mullin, CEO of Mantra, pointed out that the UAE and the broader MENA region possess unique advantages for the adoption of RWA tokenization. He noted that the region is abundant in oil, gas, and minerals, and many local residents are digitally native, indicating their comfort with technology and Web3. Mullin emphasized that the curiosity of the younger generation is likely to transform how markets across the region operate.