The Rise of RWA Tokenization in the UAE
Real-world asset (RWA) tokenization is gaining momentum in the United Arab Emirates (UAE) as industry players position themselves to meet increasing demand for blockchain-based asset trading.
RWA tokenization involves converting financial and tangible assets into blockchain-based tokens, enhancing accessibility and liquidity. On Feb. 3, onchain RWAs reached a cumulative all-time high of $17 billion, cementing the sector’s role as a major crypto investment narrative in 2025.
Strong Demand for Tokenization
With RWA tokenization on the rise, UAE-based firms are witnessing increasing interest from asset owners. Scott Thiel, founder and CEO of Tokinvest, a UAE-regulated RWA platform, emphasized 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 Leads the Adoption
Thiel highlighted real estate as the leading sector adopting RWA tokenization, largely due to Dubai’s booming property market. He noted:
“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. On Jan. 9, RWA blockchain firm Mantra signed a $1 billion agreement to tokenize properties owned by the Damac Group, one of the UAE’s largest conglomerates. This deal ensures Damac’s tokenized assets remain exclusive to the Mantra chain throughout 2025.
Regulatory Support Fuels Growth
Mantra’s expansion into the Middle East and North Africa (MENA) region was further bolstered by receiving its Virtual Asset Regulatory Authority (VARA) license on Feb. 19. The regulatory approval underscores the UAE’s commitment to fostering blockchain adoption and financial innovation.
As the UAE continues supporting RWA tokenization, experts predict more asset classes will be tokenized, further solidifying the country’s position as a global leader in blockchain finance.
