Bitcoin News Today: UAE Real Estate Takes Digital Leap with Crypto-Powered Deals

RAK Properties, a leading real estate developer in the Ras Al Khaimah emirate of the United Arab Emirates (UAE), has announced it will now accept cryptocurrency payments for international property transactions. The company will accept Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and other major digital assets as part of a strategic partnership with Hubpay, a fintech firm licensed under the Abu Dhabi Global Market (ADGM) and Dubai’s Virtual Asset Regulatory Authority (VARA). The initiative is aimed at attracting a new demographic of digitally savvy and globally mobile investors into the UAE’s real estate market.

Under the new payment system, all crypto transactions will be instantly converted into UAE dirhams (AED) via Hubpay’s regulated platform before being deposited into RAK Properties’ accounts. This ensures that the developer does not directly handle or store digital assets, maintaining full compliance with the UAE’s financial regulations. The partnership is designed to streamline high-value international real estate transactions and enhance security and transparency for both buyers and sellers.

The move aligns with the UAE’s broader strategy to position itself as a global hub for digital asset adoption. The country has seen rapid growth in both retail and institutional crypto activity, supported by a clear regulatory framework and the absence of capital gains taxes on crypto profits. According to Chainalysis, UAE-based crypto activity saw over 75% year-over-year growth in small retail transactions as of June 2024. Chase Ergen, a board member of DeFi Technologies, forecasted that crypto could become the UAE’s second-largest economic sector within five years [2].

RAK Properties is leveraging this momentum to expand its reach, particularly through its flagship Mina beachfront community. The company expects that the new crypto payment option will enhance the appeal of its developments to international investors. More than 800 units in Mina are set to be delivered by year-end, with additional developments planned as part of its 2025 expansion strategy. The company reported a 39% year-over-year increase in net profit, reaching 281 million dirhams in 2024, demonstrating its strong financial performance and growth trajectory [1].

The partnership with Hubpay also reflects RAK Properties’ commitment to innovation and accessibility in the real estate sector. CFO Rahul Jogani emphasized that the move is part of a broader strategy to engage with a new ecosystem of digitally and investment-savvy customers. Kevin Kilty, CEO of Hubpay, added that the collaboration enables secure and seamless transactions, helping RAK Properties remain a trusted and forward-thinking brand in the region.

The adoption of crypto payments by RAK Properties is a significant development in the UAE’s real estate market, which continues to attract global interest. As the country advances its Vision 2030 goals of economic diversification and technological innovation, the integration of digital assets into real estate transactions is likely to play a key role in further solidifying the UAE’s position as a leading destination for Web3 and fintech-driven investments.

Source:

[1] UAE's RAK Properties to accept Bitcoin, crypto for real ... (https://cointelegraph.com/news/uae-rak-properties-accept-bitcoin-cryptos-real-estate)

[2] RAK Properties Enables Cryptocurrency Payments ... (https://www.rakproperties.ae/news/rak-properties-enables-cryptocurrency-payments-through-innovative-new-partnership-with-hubpay)

[3] RAK Properties to Accept Bitcoin and Crypto for Real ... (https://coincentral.com/rak-properties-to-accept-bitcoin-and-crypto-for-real-estate-in-uae/)