Latest news with #UAECentralBank
Khaleej Times
6 days ago
- Business
- Khaleej Times
Dubai's tokenised property revolution reshapes global real estate investing
Dubai's real estate market is entering a new era, powered by blockchain and tokenisation, as it emerges as a global hub for digital property investment. The city's second fully tokenised property sale, completed earlier this month via the Dubai Land Department's (DLD) pilot platform, sold out in under two minutes and drew investors from more than 30 countries — signaling a seismic shift in how the world views access to real estate. Tokenisation allows physical real estate assets, such as office buildings, residential towers, and mixed-use developments, to be split into digital tokens. These tokens represent fractional ownership and can be traded via blockchain platforms. For individual investors, it offers access to high-value property markets like Dubai without the need for significant capital. For developers, it opens up new capital-raising channels, diversifying investor bases and speeding up transactions. Dubai's Real Estate Tokenisation Project, launched under the Real Estate Evolution Space (REES) initiative, is spearheaded by the Dubai Land Department in collaboration with the UAE Central Bank, the Virtual Assets Regulatory Authority (VARA), and Dubai Future Foundation. This coordinated push marks a regional first in the Middle East and places Dubai among the world's pioneers in integrating blockchain into mainstream property transactions. 'As global investors seek smarter, more transparent, and agile models, Dubai's bold steps in real estate tokenisation are not only driving its property boom — they are redefining the very mechanics of property ownership for the digital age,' says Jayakrishnan Bhaskar, CEO of Ozon Marketing, a real estate consultancy. While the technology itself is not new, Dubai's embrace of tokenised real estate is unfolding faster and at greater scale than in most global cities. The success of the pilot project reflects the emirate's ability to pair technological experimentation with pragmatic regulatory frameworks, creating an ecosystem where both retail and institutional capital feel increasingly secure. According to PP Varghese, head of Professional Services at Cushman & Wakefield Core, 'Dubai's leadership in tokenisation reflects its ability to combine regulatory innovation with strong market fundamentals. As institutional investors assess emerging models, the long-term opportunity lies in delivering professionally managed, transparent platforms that meet both governance standards and global capital expectations.' Analysts say tokenisation could dramatically increase market participation by lowering barriers to entry. Traditionally, real estate investment in Dubai required large capital outlays, which restricted access primarily to high-net-worth individuals and institutional buyers. Tokenisation now allows everyday investors to acquire fractional stakes in income-generating properties — such as offices in Business Bay or apartments in Downtown — enabling broader participation in one of the world's most dynamic real estate markets. Data from CBRE and JLL show that Dubai's real estate investment volume has surged over the past 18 months, with over Dh160 billion in transactions recorded in the first five months of 2025 alone. Tokenised offerings, though still small relative to the overall market, are beginning to play a meaningful role in sustaining investor momentum, particularly among younger, tech-savvy international buyers looking for digital-first opportunities with attractive yields. However, experts caution that tokenisation does not override traditional real estate principles. Asset location, tenant quality, maintenance, and long-term viability remain critical to returns. Tokenisation merely reconfigures ownership structure and access — it does not alter the performance fundamentals of the underlying asset. Cost structures are also more layered than they appear. Unlike traditional property deals that involve clear broker and registration fees, tokenised investments often come with blockchain-related transaction costs, compliance expenses, and ongoing platform management charges. As platforms evolve, there is growing pressure to streamline these costs to maintain competitiveness and investor confidence. Another key risk is valuation volatility. Because tokens can be traded in real-time, their prices may fluctuate independently of the actual performance of the physical asset. For example, a commercial tower's value should reflect rental income, occupancy, and lease terms, but in a tokenised structure, it might also be influenced by broader market sentiment, platform liquidity, or speculative trading — posing risks to long-term capital providers. Still, the benefits are clear. Blockchain-based models offer unmatched transparency, real-time auditing, automated compliance, and operational efficiency — features that increasingly align with the expectations of global investors. Dubai's regulatory willingness to support these models through initiatives like the DLD pilot adds credibility and signals that the city is preparing for a future where hybrid investment structures — part traditional, part digital — will dominate. Institutional interest is growing. Sovereign-backed developers and property funds in Dubai are reportedly exploring ways to tokenise portions of their portfolios, particularly office buildings, logistics assets, and branded residences that are already professionally managed and income-generating. These entities are better positioned to meet the stringent regulatory and governance demands that institutional investors expect. As countries across Europe and Asia cautiously experiment with real estate tokenisation, Dubai's early success may offer a blueprint. The city's agile regulatory environment, investor-friendly tax policies, and world-class infrastructure make it a natural testing ground for blockchain-based innovation. With the UAE also rolling out its broader virtual asset framework under VARA, the future of tokenised investment appears well-aligned with the nation's long-term digital economy vision. Realty pundits believe that tokenisation is unlikely to replace traditional real estate entirely. Instead, it will increasingly complement it — especially in markets like Dubai where global capital, innovation, and infrastructure converge. 'The path forward may lie in hybrid investment structures that combine the best of both worlds: the institutional security of professionally managed assets and the digital ,' they said.
Khaleej Times
6 days ago
- Business
- Khaleej Times
UAE: Bank fined Dh3 million for violating anti-money laundering law
The authority said that it works to ensure that all banks and their staff abide by local laws and regulations A bank has been fined Dh3 million by the UAE Central Bank for failing to comply with anti-money laundering laws. The bank failed to keep up with the rules stipulated in Decree Federal Law No. (20) of 2018 on Anti-money Laundering and Combating the Financing of Terrorism and Illegal Organisations and its amendments, the authority said on Thursday. The authority said that it works to ensure that all banks and their staff abide by local laws and regulations to safeguard the transparency of the banking sector and the UAE financial system.
Economic Times
20-06-2025
- Business
- Economic Times
UAE rule, wary I-T to deter dodgy crypto deals
Mumbai: In the lane to launder money, the skill to move cryptos to control companies and properties in Dubai has been honed over the past few years. But treading that alley would soon become tougher. Dual, albeit unrelated, developments in India and the UAE would force money movers to devise new tricks. First, Income tax (I-T) officials, hunting for illicit homes of Indians over the past six months, now strongly suspect that some property purchases were made with cryptocurrencies; second, a new regulatory regime in the Middle East country, would soon end payment in cryptos, other than stable coins, to freely buy goods and services. "When Indian residents use crypto to purchase real estate, they bypass Indian banking channels and FEMA scrutiny. But, under the new UAE regulations (expected from August), merchants would no longer accept crypto directly. Only entities licensed by the UAE Central Bank would be allowed to convert stablecoins to AED after collecting full KYC. While this framework ensures the buyer's identity is recorded, it remains unclear whether such data would be shared under the India-UAE tax treaty," said Purushottam Anand, founder of the law firm Crypto raiding a leading UAE developer having roots in Mumbai and clients across India, a northern office of the I-T department found that more than 460 buyers in the 650-odd property deals have no record of having remitted money through banks to acquire the properties. According to findings which were shared with other I-T centres two months ago, the arm of the UAE realtor which brokered the deals was aided by a network of 86 sub-brokers who later shared details with the tax office. According to tax circles, some of the clients had paid in cryptos, probably under the belief it would go untraced. Earlier this year, the department had found that hundreds of mule accounts were opened by a few persons in Kerala to deposit cash, use the money to buy cryptos -either on local platforms or through peer-to-peer transactions-and then move the coins to other wallets before encashing the them in UAE, or buying assets like properties, or transferring them to third parties. "When digital assets move from exchanges to P2P platforms or private wallets, monitoring becomes difficult, creating opportunities for illegal activities such as ransomware attacks, laundering, tax evasion, and potentially terrorist financing. Although the exchanges are required to report 'suspicious transactions', including withdrawals, with the Financial Intelligence Unit-India, such risks can be further addressed through stricter enforcement of TDS provisions, i.e. Sections 194S or 195, ensuring tax compliance for all crypto transactions, whether conducted on or off exchanges. Additionally, specifying the reporting entities and the format for disclosures under Section 285BAA will improve traceability," said Ashish Karundia, founder of the CA firm Ashish Karundia & Co. 'PAYMENT TOKEN REGULATIONS' The new 'Payment Token Services Regulation' lays down the rules and conditions established by the UAE Central Bank for granting a licence or registration for payment token services-which include payment token issuance, token conversion, and token custody and transfer. Under the rules no merchant or anyone in the UAE selling goods or services can accept a virtual asset unless it's a dirham payment token issued by a licensed issuer. Also, a bank cannot act as a payment token issuer. UAE is working on Dirham-linked stable coin (like USDT or Tether which is pegged to the dollar)."This would have implications for India which has close economic and financial ties with the UAE. By bringing digital assets such as payment tokens under a structured licensing and anti-money laundering framework, the regulation adds a layer of safety and transparency to cross-border digital financial flows. For Indian individuals and businesses engaging in the UAE's digital economy, on one hand this means greater clarity, reduced risk of fraud, and alignment with global best practices; on the other hand, the clear prohibition on anonymous crypto instruments like privacy tokens reinforces the global trend toward traceable and regulated digital transactions. This is something India is also actively pursuing through its own financial intelligence mechanisms. This would deter transactions in property, high value luxury products bought by Indians in UAE using crypto tokens," said Siddharth Banwat, partner at CA firm Banwat & Associates dealers said the UAE rules are not entirely fool-proof as coins can be routed through platforms in multiple jurisdictions whose cooperation would be vital to spot the trail. But the very presence of licensed intermediaries collecting and storing information would deter money movers.
Irish Daily Mirror
15-06-2025
- Business
- Irish Daily Mirror
Kinahan cartel in new battle to keep laundered drug money
The Kinahan cartel are in a new battle to keep their laundered drug money. The Central Bank of the United Arab Emirates in Dubai where Christy Kinahan Snr and his sons Christy Jnr and Daniel are all living has started a new war against money laundering. Six foreign exchange houses were fined millions in recent weeks for breaching the rules. But now the crackdown has spread across several sectors previously untouched by the regulator – property, gold and jewellery trading plus auditing and corporate service providers. The UAE Central Bank confirmed it is now working hand in hand with the Dubai police to increase and tighten up surveillance on suspicious transactions across all businesses. They have created new data sharing channels so they can identify the true individuals behind corporate structures and financial dealings. The Dubai regulator and government said there is now zero tolerance for institutions who fail to protect their financial system from abuse. Two foreign banks were also fined along with individual executives caught breaking the rules. A senior Garda source said: 'This move will put serious financial pressure on the Kinahans and all their business interests in Dubai. 'They own a portfolio of properties in the Gulf with many held in the names of other people plus a number of so called legitimate businesses. The authorities in Dubai are cleaning up their act and no longer want to be a heaven for various international criminals.' The UAE has also come under pressure from various other countries including both the EU and the United States to meet global financial and business compliance standards. The latest crackdown comes after the extradition from Dubai back to Ireland over a week ago of top Kinahan gang member Sean McGovern – a right hand man of the family. He is currently being detained at the maximum security Portlaoise Prison on murder charges. Last Monday, the Garda Commissioner Drew Harris warned the notorious crime family that they were coming from them. Both he and the Government are increasingly confident they can get the three Kinahans back home to stand trial for a variety of serious charges. The United States is also after them and has five million dollars each for their capture. Mr Harris was speaking on Monday – 12 days after Daniel Kinahan's key confidant Sean McGovern was sent back from Dubai to face serious charges in his native Dublin, including murder. He added: 'They should be worried. Ourselves and other law enforcement are fixed on them, and we are fixed on bringing them all to justice.' Speaking at Garda HQ in Dublin's Phoenix Park, Mr Harris warned the leaders – who like McGovern were hit with sanctions by United States authorities in April 2022 – were the subject of an unprecedented international law enforcement operation. He said: 'They should have been worried now for a number of years because there's huge effort, huge investigative effort, and international effort, has gone into the investigation of the overall Kinahan organised crime gang. 'A lot of things which they said couldn't be done, have been done. So following on from the sanctions, the work that we've undertaken with the UAE, and the work that specifically we've undertaken with the police in Dubai has been very fruitful. 'They have been very active partners with us in terms of investigation, providing us information, and obviously, UAE authorities have worked to support the extradition. And you see an individual then extradited back to Ireland to face justice here, and that's the correct thing to do.' The sanctions also saw each of the Kinahan trio have a bounty of $5million placed on their heads. And Mr Harris told other members of the gang that they should consider turning their bosses in and taking the reward money. He added: 'I would also point out the other senior lieutenants within the Kinahan Organised Crime group who are now facing justice or are imprisoned, and the sanctions and the rewards still stand. 'And I would point to there's $15million there of reward money through the federal law enforcement authorities of the US, so that is still in play as well. 'I just want to remind others in the Kinahan Organised Grime Gang of the perilous position that they're now in. Ourselves and other law enforcement are fixed on them, and we are fixed on bringing them all to justice. 'So all of them should be worried, and they should be thinking about the choices, serious life choices that are now ahead of them, in respect of what to do over the coming months. Our work with the Dubai police obviously carries on.' The Gardaí and international police forces and intelligence agencies are watching the cartel leaders in case they try to make a run from Dubai. The Kinahans have been living the high life in the Gulf since they fled Marbella in Spain in 2017 and are running their worldwide drugs operation from there. The Garda source added: 'If they run out of money, they will be easier to catch.'
Khaleej Times
20-05-2025
- Khaleej Times
Dubai: Asian passenger gets 2-year jail term, Dh100,000 fine for smuggling controlled medication
A 45-year-old Asian man has been sentenced to two years in prison and fined Dh100,000 by the Dubai Criminal Court after being caught with hundreds of capsules of restricted medication in his luggage. The passenger was intercepted at Dubai International Airport when customs officers found 480 capsules during a baggage inspection. Lab analysis confirmed the pills contained a controlled substance that cannot be brought into the country without a valid prescription. Investigations revealed the man did not have any medical documents to justify possession. The man told authorities that he had transported the medication from his home country to deliver it to someone in the UAE. In addition to jail time and a fine, the court ordered the man's deportation after serving his sentence. He is also banned from transferring or depositing money to others, directly or indirectly, without approval from the UAE Central Bank and the Ministry of Interior for a period of two years after release. Dubai
