Prime Highlights:
- Saudi Arabia launches a digital system that turns real estate into tokens, making it easier for people to invest and modernising property transactions.
- The Saudi Real Estate Registry will manage the system, including property registration, marketplace access, and shared ownership using blockchain technology.
Key Facts:
- The initiative is part of Saudi Arabia’s Vision 2030 plan to modernise the property sector and attract global investment.
- Similar tokenisation projects are underway in Dubai and Qatar, creating a regional push for digital property markets.
Background:
Saudi Arabia has introduced a digital system that turns real estate into tokens, making it easier for people to invest and improving property transactions.
The Saudi Real Estate Registry will run the system, managing property registration, marketplace access, and shared ownership. It will use blockchain to handle payments and ownership records.
Tokenising real estate means that parts of a property can be represented as digital tokens.
Jessa White, a financial regulation expert, said the project could create many new investment opportunities in Saudi Arabia’s property market.
Jessa White said the system will allow more investors to take part. She noted that companies should consider how the new rules could affect their business and begin understanding the regulations.
The launch comes after a pilot project earlier this year as part of Saudi Arabia’s Vision 2030 plan, which aims to modernise the property sector and attract more foreign investment.
Saudi officials have used examples from Europe, Japan, and Singapore and adapted them to fit local laws and needs.
Saudi Arabia’s move comes amid growing regional momentum. In June, Saudi Arabia ran a pilot for real estate tokenisation through REGA. Earlier this year, Dubai started a similar project with the Dubai Land Department and the Virtual Assets Regulatory Authority, becoming the first in the region to use tokenisation for official property titles. Qatar is also testing its own programme.
Marie Chowdhry, a fintech specialist at Pinsent Masons, said the Gulf region is now transitioning from experimental projects to large-scale, institutional-grade infrastructure.
Marie Chowdhry noted that Saudi Arabia’s project, along with similar efforts in Dubai and Qatar, is creating a regional system where digital property rights can work together. She said this could encourage cross-border investment while keeping local laws and Shariah rules intact.
She added that companies wanting to take advantage of this new market should start adjusting their products, custody methods, transaction processes, and reporting to match the new regulations. Early preparation will give firms an advantage as this market grows.
