UAE Leads Real-World Asset Tokenization Boom

The United Arab Emirates (UAE) has emerged as a global leader in the real-world asset (RWA) tokenization boom, driven by proactive regulations and increasing demand for blockchain-based asset trading. As of Feb. 3, 2025, cumulative onchain RWAs reached an all-time high of $17 billion, solidifying the sector's role as a major crypto investment narrative.

UAE-based firms are witnessing strong interest from asset owners in RWA tokenization, which involves converting financial and tangible assets into blockchain-based tokens, enhancing accessibility and liquidity. Scott Thiel, founder and CEO of Tokinvest, a UAE-regulated RWA platform, noted the market's enthusiasm: "There’s no lack of demand. Many developers and large real estate asset owners are exploring tokenization as an alternative means of financing or selling their properties."

Real estate is leading the adoption of RWA tokenization, largely due to Dubai's booming property market. Thiel highlighted this trend: "Everyone wants real estate. What’s the hottest real estate market in the world? Today, it’s probably Dubai. Everyone wants a piece of it." This sentiment is echoed by recent high-profile deals, such as Mantra's $1 billion agreement with Damac Group to tokenize properties, ensuring Damac's tokenized assets remain exclusive to the Mantra chain throughout 2025.

The UAE's regulatory support has fueled the growth of RWA tokenization. Mantra's expansion into the Middle East and North Africa (MENA) region was bolstered by receiving its Virtual Asset Regulatory Authority (VARA) license on Feb. 19. As the UAE continues to support RWA tokenization, experts predict more asset classes will be tokenized, further solidifying the country's position as a global leader in blockchain finance.