UAE Leads Global RWA Tokenization Boom, Reaching $17 Billion

The United Arab Emirates (UAE) has emerged as a global leader in real-world asset (RWA) tokenization, driven by proactive regulations that have fueled a boom in blockchain-based asset trading. As of February 3, cumulative onchain RWAs reached an all-time high of $17 billion, positioning the sector as a key crypto investment narrative in 2025.

Industry players in the UAE have expressed strong demand for RWA tokenization, with real estate leading the adoption. Scott Thiel, founder and CEO of Tokinvest, a UAE-regulated RWA platform, noted that developers and large real-estate asset owners are exploring tokenization as an alternative means of financing or selling their properties. The booming property market in Dubai, in particular, has attracted significant interest in RWA tokenization.

On January 9, RWA blockchain firm Mantra signed a $1 billion deal to tokenize properties belonging to the Damac Group, one of the largest conglomerates in the UAE. Mantra received its license from the Virtual Asset Regulatory Authority (VARA) on February 19, allowing it to expand its operations into the Middle East and North Africa (MENA) region.

Rifad Mahasneh, CEO of OKX MENA, confirmed the significant growth in tokenization of real estate assets in the UAE. He attributed this trend to the evolving nature of real estate and the convergence of crypto and RWA industries. Mahasneh believes that RWA tokenization will diversify and expand to other industries, such as carbon credits and intellectual property.

The UAE's proactive approach to digital asset regulations has been crucial in driving the RWA tokenization boom. Thiel, who helped shape VARA's regulatory framework in 2022, noted that the UAE stands out for its clear guidelines on tokenized assets, de-risking many crypto activities in the region. The UAE's forward-thinking regulatory approach has allowed organizations to expand the use of RWAs.

Beyond regulation, the UAE and the wider MENA region have other advantages for the adoption of RWA tokenization. The region is rich in natural resources such as oil, gas, and minerals, and many of its population are digitally native, comfortable with technology and Web3. This curiosity and familiarity with technology are expected to lead to a rework of how markets across the region operate.