Investors can now buy share of Dubai property for Dh2,000

25-05-2025

Investors can pay as little as Dh2,000 for a slice of Dubai's tokenised real estate project after the Dubai Land Department (DLD) officially launched the pilot phase on Sunday. The sum will buy investors tokenised shares in ready-to-own properties in Dubai, with only UAE dirhams accepted for all transactions, the DLD said. Cryptocurrencies will not be accepted during the pilot phase. Currently, only Emirates ID holders will be able to invest in the project before it opens up to international investors. 'The platform is set to expand globally in the near future, with additional platforms to be integrated in later phases,' the Dubai government body said. The initiative is being implemented by Prypco Mint platform, in collaboration with Dubai's Virtual Assets Regulatory Authority (Vara), the UAE Central Bank and the Dubai Future Foundation (DFF) through the Real Estate Sandbox. Zand Digital Bank has been appointed as the banking partner for the project's pilot phase. A partnership agreement between DLD, Prypco and Ctrl Alt Solutions will focus on attracting specialised asset tokenisation companies, while safeguarding investor rights. While the pilot phase of the project includes only two authorised companies, Prypco and Ctrl Alt, there are plans to open the market to other qualified firms in the future, DLD said. The project, announced in March, focuses on converting real estate assets into digital tokens recorded on blockchain, helping to streamline the process of buying, selling and investing. Real estate tokenisation enables fractional property ownership, where each asset is divided into shares based on investors' budget and financial strategy. This allows investors to acquire a portion of a property without fully purchasing it. Dubai's real estate tokenisation market is forecast to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate's total property transactions, according to government data. Through the digital platform mint.prypco.com, investors can find information about property details ranging from pricing, risk factors, and technical specifications to the minimum investment required. The real estate tokenisation project is jointly managed by the DLD, as the regulator of physical real estate assets, and Vara as the regulatory body for digital assets to ensure a transparent regulatory framework, the DLD said. During the current phase, the CBUAE will oversee the opening of corporate accounts linked to real estate tokenisation through the Client Money Account (CMA), as part of a system designed to safeguard investor funds. Under this system, an investor's money is deposited into the CMA and not transferred to the tokenisation company until the purchase process is fully completed, to ensure security and transparency. The project's initial phase is limited to ready-to-own properties, and tokenisation is allowed only through companies licensed by the Vara, while DLD is responsible for reviewing and validating the fairness of property pricing before any listing is approved. 'Investors will benefit from both rental income and capital appreciation resulting from the property's appreciation, while holding a legally documented ownership share issued by Dubai Land Department – ensuring a transparent and secure investment experience without the complexities of traditional property management,' the DLD said. The latest announcement comes as Dubai's property market continues to perform strongly amid government initiatives such as residency permits for retired and remote workers, the expansion of the 10-year golden visa programme and strong economic growth and diversification efforts. The emirate recorded real estate deals worth Dh761 billion last year, up 20 per cent compared to 2023, with the total number of transactions for the year increasing by 36 per cent to 226,000, according to data provided by the Dubai Media Office. It also achieved a record in the sale of homes valued at more than $10 million last year, real estate consultancy Knight Frank said in a report last month. The emirate recorded 435 home sales valued at more than $10 million, up from 434 home sales in 2023 in the same category, with the total value of deals reaching $7 billion.

Hashtags

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Mideast Stocks: Gulf markets mixed as strong earnings offset US tariff concerns

Zawya

14 minutes ago

Zawya

Mideast Stocks: Gulf markets mixed as strong earnings offset US tariff concerns

Stock markets in the Gulf ended mixed on Monday, as investors weighed positive corporate earnings against concerns over U.S. trade policy changes. The European Union is exploring broader counter-measures against the U.S. as prospects of an acceptable trade agreement with Washington fade, according to EU diplomats. Investors had been hoping for some progress in trade talks ahead of U.S. President Donald Trump's August 1 tariff deadline; Commerce Secretary Howard Lutnick is still confident a deal could be reached with the EU. Saudi Arabia's benchmark index gained 0.2%, ending a nine-day losing streak, led by a 1.6% gain in sharia-compliant lender Al Rajhi Bank and a 1.2% increase in Saudi National Bank, as the duo reported a rise in quarterly net profit. But International Petrochemical Company declined 5.7%, after the firm turned to losses in the second quarter. If upcoming earnings reports are broadly positive, the market may rebound, Osama Al Saifi, managing director for MENA at Traze, said. Dubai's main share index dropped 0.8%, easing from a multi-year high, hit by a 3.7% slide in top lender Emirates NBD. Profit-taking weighed on the market, with noticeable pressure on the financial sector, Saifi said. "Investors could secure their profits after a long period of strong momentum ahead of the Q2 earnings releases." Air Arabia leapt 4.8% to a fresh record high after securing a bid to operate a new Saudi low-cost national airline, set to launch by 2030. In Abu Dhabi, the index fell 0.2%. Oil prices dipped slightly, with the latest European sanctions on Russian oil expected to have minimal impact on supplies while U.S. tariffs ensure demand concerns remain. The Qatari index closed 0.7% higher, with the Gulf's biggest lender Qatar National Bank gaining 1.5%. Outside the Gulf, Egypt's blue-chip index edged 0.2% higher, hitting a new record high. SAUDI ARABIA rose 0.2% to 10,981 Abu Dhabi fell 0.2% to 10,262 Dubai dropped 0.8% to 6,045 QATAR gained 0.7% to 11,022 EGYPT added 0.2% to 34,130 BAHRAIN was down 0.3% to 1,938 OMAN rose 1.5% at 4,743 KUWAIT was up 0.1% to 9,302 (Reporting by Ateeq Shariff in Bengaluru; Editing by Sahal Muhammed)

RAKBank profit after tax rises 26.1% to Dh1.374 billion for first half

Khaleej Times

14 minutes ago

Khaleej Times

RAKBank profit after tax rises 26.1% to Dh1.374 billion for first half

RAKBank on Monday announced that profit after tax rose 26.1 per cent to Dh1.374 billion for the first of the year, driven by non-interest income growth and robust asset quality. For the second quarter, profit after tax stood at Dh669 million, reflecting an increase of 22 per cent year on year. The bank recorded an operating profit of Dh1.68 billion, up 7.7 per cent year on year on the back of strong growth in balance sheet and continued non-interest income momentum. Operating expenses rose 12.9 per cent vs last year driven by continued investments in technology, data, people and customer experience. Cost to income ratio (CIR) at 34.6 per cent vs. 33.6 per cent for the first half of 2024. Total assets grew by 18.1 per cent year on year to Dh95 billion, with gross loans and advances increased to Dh51.3 billion, an increase of 17.4 per cent year on year. Growth in loans driven by all segments, with wholesale banking loans growing by 33.0 per cent year on year, aligning with the bank's diversification strategy. The current and savings accounts (Casa) deposit base grew to Dh40.4 billion, up 12.2 per cent year on year, with Casa1 ratio of 66 per cent, one of the highest in the industry Portfolio credit quality remains robust with net impairment charge to average loans and advances ratio at 0.7 per cent against 1.7 per cent during the same period last year, resulting from a strategic shift in business mix towards secured, low risk assets as well as favorable economic and credit environment. The impaired loan ratio for the first half of 2025 improved to 1.9 per cent against 2.4 per cent for the first half of 2024 while 'provisions to gross loans' ratio was 5.2 per cent compared to 6.2 per cent as of the first half of 2024, providing adequate coverage. Shareholder returns improved with return on equity (ROE) of 22.1 per cent against 20.4 per cent in the first half of 2024 and return on assets (ROA) of 3.1 per cent against 2.9 per cent in the first half of 2024. The bank remains well capitalised with capital adequacy ratio (CAR) of 18.8 per cent as at the first half of 2025 against 18.0 per cent as at the first half of 2024. Strong liquidity position was reflected by an eligible liquid asset ratio of 15.1 per cent vs. 15.5 per cent at the first half of 2024 and lending to stable resources ratio at 80.7 per cent vs. 79.4 per cent at the first half of 2024. Operating income for the first half of 2025 amounted to Dh2.6 billion, a 9.5 per cent increase vs the first half of 2024. Operating Income for the second quarter was Dh1.3 billion, an increase of 7.4 per cent year on year. Net interest income rose 0.8 per cent compared to the first half of 2024 due to growth in total assets by 18 per cent year on year, despite interest income being impacted by 100 bps rate cut in the second half of last year. Despite external pressures on the net interest margin, on a risk adjusted basis, RAKBank's net interest margin improved by 37 bps to 3.3 per cent in the first half of 2025 compared to 2.9 per cent in the first half of 2024, as the bank shifts toward secured, low-risk assets. Non-interest income increased by 35.6 per cent from last year to Dh795 million, driven by the bank's efforts to diversify its fee income, forex income and episodic gains in investment income. Net impairment charges fell 52.5 per cent compared to the same period last year to Dh173 million, as the bank's portfolio quality improved with impaired loan ratio dropping to 1.9 per cent from 2.4 per cent as at the first half of 2024. Net impairment charge to average loans and advances ratio was at 0.7 per cent for the first half of 2025 compared to 1.7 per cent during the same period last year. Raheel Ahmed, Group Chief Executive Officer, RAKBank, said: 'We have, once again, achieved strong balance sheet growth and fee income. This growth reflects the strength of our diversified business model and continued balance sheet momentum. Portfolio credit quality remains robust with cost of risk improving to 0.7 per cent in H1 2025 from 1.7 per cent in H1 2024. On the back of the UAE's strong economic fundamentals, we remain confident in delivering a solid performance in the second half of 2025, supported by our strategic execution and sustained business momentum. However, we remain cautious about the geopolitical and global economic uncertainties, including the loosening of monetary policy across key economies and its impact on margins.'

Emiratisation gathers pace with more than 150,000 UAE nationals working in private sector

The National

44 minutes ago

The National

Emiratisation gathers pace with more than 150,000 UAE nationals working in private sector

The number of Emiratis working in the private sector has surpassed 152,000, the Ministry of Human Resources and Emiratisation announced on Monday. It marks an increase from 100,000 in May 2024, with UAE citizens now working across 29,000 companies in the Emirates. The figures are from June 30, the deadline set for achieving Emiratisation targets for the first half of the year. Emirati citizens are currently employed across six main economic sectors, the ministry said. These are business services, financial intermediation, trade, repair services, construction and manufacturing. The UAE has embarked on a major push to encourage more domestic talent to join the private sector in recent years. The Nafis programme was introduced in September 2021 with a mission of ensuring 10 per cent of all jobs in the private sector are taken up by citizens by the end of 2026. Companies must increase their Emirati workforce by 1 per cent every six months as part of the nationwide scheme. Employers in the UAE with at least 50 members of staff were required to meet a 4 per cent target by the end of 2023. As a result, the Emirati employment rate will increase to 8 per cent by the end of 2025, and 10 per cent in 2026. Last month, private sector companies were urged to develop long-term strategies to attract and retain top domestic talent and guard against seeking to merely 'fulfil a quota' to hit strict Emiratisation targets.