Latest news with #VARA
Crypto Insight
a day ago
- Business
- Crypto Insight
Why crypto millionaires are moving to the UAE (these 5 reasons explain everything)
With no personal income or capital gains tax and recent VAT exemptions on crypto transactions, the UAE provides an unmatched financial incentive for crypto investors. Dubai's VARA and Abu Dhabi's FSRA lead with retail and institutional frameworks, while RAK, Sharjah and others are developing tailored zones and policies for Web3 innovation. Free zones like DMCC, ADGM and DIFC offer business-ready ecosystems, while high-speed internet, 5G and cloud services make the UAE a plug-and-play hub for crypto firms. The Golden Visa, safety, global connectivity and smart city living combine to offer crypto millionaires not just financial freedom but a secure, luxurious home base. In recent years, the United Arab Emirates (UAE) has emerged as a magnet for crypto millionaires. Across all seven emirates — from cosmopolitan Dubai and Abu Dhabi to rising hubs like Ras Al Khaimah and Sharjah — the UAE offers an enticing mix of zero taxes, clear regulations, cutting-edge infrastructure, visionary government support and an unrivaled lifestyle. Specifically, a growing number of high-net-worth crypto investors are calling Dubai and Abu Dhabi home. This trend is significant: The UAE is now the world's top destination for migrating millionaires, with an estimated 9,800 millionaires projected to move to the UAE in 2025 alone. The country's appeal is fueled by strategic government choices: regulatory reforms, favorable tax policies and even long-term residency options like the Golden Visa. In other words, a combination of business-friendly policies and an enviable living environment is driving this UAE crypto migration. Below, this article breaks down five key policies and factors behind this phenomenon. 1. Tax-free crypto profits: Zero taxes on income and gains The UAE's zero-tax policy on crypto gains — no income tax, no capital gains tax — is a prime draw for global crypto investors. Crypto millionaires in the UAE enjoy 100% tax-free crypto profits, as the nation imposes no personal income tax or capital gains tax on individuals. This means Bitcoin billionaires, non-fungible token (NFT) moguls and startup founders can cash out or reinvest their digital wealth without handing a cut to the taxman — a stark contrast to high-tax jurisdictions in Europe or North America. Even after the UAE introduced a 9% federal corporate tax in 2023, personal crypto holdings remain untaxed and tax-free crypto profits are fully legal. Crucially, the government has gone a step further by exempting most crypto transactions from the 5% value-added tax (VAT). In late 2024, the UAE's Federal Tax Authority announced that cryptocurrency transfers and conversions would be VAT-exempt effective Nov. 15, 2024 (retroactively applied to transactions since 2018). This VAT exemption covers crypto trading and exchange services, treating them on par with other financial services. The result is a virtually tax-free environment for crypto market participants, whether they are mining Bitcoin, trading on exchanges or realizing gains from token investments. Industry insiders highlight that the UAE's combination of clear regulations and zero capital gains tax has created the 'perfect environment for crypto growth.' Did you know? Over 74% of UAE residents aged 25-34 are interested in crypto, and 21% plan to enter the market within the next 12 months. 2. Regulatory clarity: World-leading crypto frameworks in Dubai, Abu Dhabi and beyond Clarity and certainty in regulation are paramount for crypto entrepreneurs, and the UAE delivers with pioneering frameworks. Dubai: Retail-focused clarity Dubai led the charge by establishing the Virtual Assets Regulatory Authority (VARA) in 2022, the world's first regulator dedicated exclusively to virtual assets. Backed by Dubai's new virtual asset law, VARA provides clear licensing regimes for exchanges, crypto platforms and token issuers, instilling confidence for companies setting up shop. Major crypto exchanges such as Binance and have obtained VARA licenses, reflecting Dubai's attractiveness under well-defined rules. Abu Dhabi: Institutional-grade compliance Meanwhile, Abu Dhabi was an early mover in crypto oversight through the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). As far back as 2018, the FSRA introduced a comprehensive regulatory framework for virtual assets, the first of its kind in the Gulf Cooperation Council region, covering everything from exchange licensing to custody rules. This regulatory clarity in the ADGM has drawn institutional players; by late 2023, global firms such as Copper, Paxos and eToro had expanded into Abu Dhabi under the FSRA's purview. Abu Dhabi's approach typically targets institutional and high-capital crypto activities, complementing Dubai's more retail-focused market. Crucially, the UAE is working to harmonize crypto regulations federally: Dubai's VARA and the UAE's Securities and Commodities Authority (SCA) struck an agreement on mutual recognition, allowing VARA-licensed firms to operate across the UAE. This means a crypto exchange licensed in Dubai's free zone can serve customers in other emirates, further integrating the national market. Ras Al Khaimah: Specialized Web3 jurisdiction Other emirates are also advancing regulatory initiatives. Ras Al Khaimah (RAK) made headlines by launching the RAK Digital Assets Oasis (RAK DAO), touted as the world's first free zone exclusively for digital asset companies. Established by law in 2023, RAK DAO is a specialized zone with independent authority under the new Department of the Future, granting it financial and legislative autonomy to craft crypto-friendly rules. It targets Web3 and virtual asset service providers, from metaverse builders to NFT platforms, offering them a tailor-made, common-law regime. This bold move positions RAK as a future-focused jurisdiction keen to attract blockchain business. Sharjah, Ajman, UAQ, Fujairah: Emerging frontiers Likewise, Sharjah has shown interest in blockchain applications. Umm Al Quwain and Ajman are exploring fintech and digital economy initiatives, signaling that every emirate is embracing innovation. While Dubai and Abu Dhabi set the regulatory gold standard, the unified theme is clarity, clear rules, specialist regulators and proactive laws, which gives crypto investors and companies the confidence to relocate to the UAE knowing where they stand legally. Did you know? Telegram founder Pavel Durov has called Dubai home since 2017 and is now a UAE citizen. Once named the richest expat in the UAE, he ranked as the world's 120th richest person in 2024. 3. Cutting-edge infrastructure: Crypto zones, hubs and innovation ecosystems A supportive infrastructure underpins the UAE's crypto appeal. Across the emirates, there's a network of free zones, hubs and accelerators purpose-built for fintech and digital assets. Dubai In Dubai, the Dubai Multi Commodities Centre (DMCC) has established a renowned Crypto Centre, a comprehensive ecosystem hosting over 650 blockchain and digital asset companies as of mid-2025. Within this hub, crypto startups find co-working spaces, incubators and a supportive community, alongside access to DMCC's business services. Similarly, the Dubai International Financial Centre (DIFC), while traditionally focused on finance, now accommodates a thriving fintech and crypto scene through its Innovation Hub and the DFSA's regulatory sandbox for digital tokens. Abu Dhabi In Abu Dhabi, the ADGM on Al Maryah Island has become a crypto and blockchain innovation hub in its own right. ADGM operates under English common law and boasts a robust fintech ecosystem (Hub71) that, in 2023, launched a $2-billion+ initiative to fund Web3 and blockchain startups. Over 5,000 Special Purpose Vehicles (SPVs) for wealth and business structuring have been set up in ADGM, a meteoric rise from just 46 SPVs in 2016. This signals how many family offices, investment funds and crypto project founders are choosing Abu Dhabi's infrastructure to park assets and build new ventures. Even Binance's ex-CEO, Changpeng 'CZ' Zhao, and other global billionaires have established holding companies in ADGM, leveraging its robust legal framework and crypto-friendly regulations. Sharjah and beyond Sharjah, known for its academic prowess, is contributing to infrastructure by nurturing human capital and innovation. The emirate hosts the Sharjah Research, Technology and Innovation Park and recently launched a blockchain academy in partnership with layer-1 blockchain Sui at the American University of Sharjah. Through such initiatives, Sharjah is building a pipeline of blockchain talent and startups, complementing the physical infrastructure with intellectual infrastructure. Further east, Fujairah is developing tech-friendly free zones (like Fujairah Creative City) and exploring blockchain use cases in sectors such as supply chain and finance, aiming to diversify its economy with digital ventures. Ajman and Umm Al Quwain, while smaller, also offer cost-effective free zone licenses and supportive business environments for crypto-related startups, ensuring that entrepreneurs have options beyond the big cities. Importantly, the UAE's world-class digital infrastructure, ubiquitous high-speed internet, 5G networks and cloud data centers provides the backbone for any crypto or blockchain operation. Whether in Dubai's bustling crypto co-working spaces or RAK's new digital assets zone, crypto investors find a plug-and-play infrastructure ready to support their endeavors. 4. National blockchain and metaverse ambitions of visionary government The UAE's emergence as a crypto hub is no accident; it's the product of deliberate, forward-looking government vision. The country's leadership has woven blockchain and digital assets into its broader national strategies for innovation. Strategic national goals As early as 2018, the UAE unveiled Blockchain Strategy 2021, aiming to transfer 50% of government transactions onto blockchain platforms by 2021. This push not only streamlined public services but also signaled to the world that the UAE was serious about adopting crypto's underlying technology at scale. Building on that momentum, Dubai launched an ambitious Dubai Metaverse Strategy in 2022, with the goal of making the emirate one of the global top 10 metaverse economies. The strategy targets adding 4 billion UAE dirhams ($1.1 billion) to the economy in five years and creating 40,000 virtual jobs by 2030. Initiatives under this plan include attracting 1,000 blockchain and metaverse companies (Dubai already had 1,000 firms in this space by 2022) and integrating metaverse tech into tourism, education and government services. In practice, this means Dubai's government is actively experimenting with NFTs, virtual real estate and immersive digital services, fostering a climate where crypto-related ideas are welcomed rather than shunned. Federal support At the federal level, the UAE has a National AI Strategy and a Digital Economy Strategy, under which blockchain and crypto are key components for diversifying beyond oil. High-level ministers (such as the minister of state for artificial intelligence, digital economy and remote work) champion crypto and metaverse projects, ensuring policy support at the top. Regional alignment Each emirate is finding its niche under this vision. Abu Dhabi, for instance, through Hub71 and ADGM, focuses on big-ticket Web3 investments and institutional adoption (including a government-backed $2-billion fund for Web3 startups). Dubai focuses on retail crypto adoption, blockchain in everyday services and emerging tech like tokenized assets and AI integration in finance. Ras Al Khaimah's creation of the RAK Digital Assets Oasis aligns with the national vision to become a 'global crypto capital,' enabling RAK to specialize in nurturing early-stage Web3 innovators in a sandbox-like environment. Even Sharjah's emphasis on education (like the American University of Sharjah Blockchain Academy) echoes the strategic goal of building human infrastructure for a blockchain-based economy. The government's pro-crypto vision is also evident in international partnerships; for example, Dubai's leadership has inked agreements with global crypto firms (like a recent deal with to develop blockchain solutions for real estate transactions) to pilot new use cases. All these efforts, including blockchain strategies, metaverse roadmaps and tech parks, create a clear message: The UAE sees crypto and digital assets as integral to its future. This vision and openness reassure crypto entrepreneurs that by relocating to the UAE, they are aligning with a country that wants their industry to thrive. Did you know? The TON Foundation's offer of UAE golden visas to Toncoin stakers was quickly denied by local regulators, exposing a legal misstep . Despite support from influencers, including Telegram's Pavel Durov, the plan clashed with strict UAE crypto marketing laws, highlighting the need for proper legal reviews. 5. Residency opportunities: Golden visas and an elite global lifestyle Beyond the formal policies, the UAE offers an enviable lifestyle and residency benefits that strongly attract wealthy individuals, including crypto millionaires. Key highlights include: The UAE's Golden Visa program, a long-term 10-year residency visa, has been a game-changer for investors, entrepreneurs and talented professionals. Crypto founders who qualify (for example, by investing in UAE businesses or real estate or by attaining success in the tech sector) can obtain a Golden Visa, securing a decade of residency for themselves and their families with no local sponsor required. The Golden Visa's allure is its stability and simplicity: It lets expatriates safely base themselves in the UAE, open bank accounts, buy property and even sponsor family members with ease. In 2024, the government expanded the visa categories dramatically, introducing new sponsor-free residency tracks for everyone from digital content creators to even luxury yacht owners. This inclusive approach signals that innovators of all stripes are welcome. A crypto hedge fund manager or blockchain developer can move to Dubai or Abu Dhabi, knowing they can secure long-term residency as easily as a more traditional investor. The lifestyle advantages of the UAE are equally compelling. Dubai and Abu Dhabi consistently rank among the safest cities globally, with low crime and high political stability, a 'safe haven status' that wealthy families highly value. Modern infrastructural amenities abound: world-class hospitals, international schools and universities, luxury malls and restaurants, and vibrant arts and culture scenes. For crypto millionaires used to international travel, the UAE's strategic location is a boon: Dubai and Abu Dhabi are major aviation hubs with direct flights connecting Europe, Asia and Africa within eight hours. This global connectivity allows investors to manage businesses across continents while enjoying a home base in the emirates. Moreover, the quality of life is bolstered by cutting-edge smart city initiatives. For instance, UAE cities are investing in smart governance (you can pay government fees in crypto for select services and digital amenities, such as high-speed 5G, widespread crypto ATMs and even real estate deals via blockchain). The day-to-day lifestyle, from sunny weather and luxury real estate to five-star entertainment and outdoor recreation, is often compared to a perpetual vacation. Such perks have not gone unnoticed by the crypto elite: Numerous crypto conferences (like Token 2049), blockchain summits and networking events now take place in Dubai annually, reinforcing the sense of a thriving community. Crucially, the UAE also offers comfort on the legal and financial front: strong banking infrastructure with private banking services tailored to high-net-worth individuals and new family-friendly legal reforms (like secular options for marriage/inheritance) that provide expatriate families more certainty. The crypto future is being built in the emirates The UAE presents crypto millionaires not just a place to do business, but an upscale, convenient lifestyle and a secure home. It's a combination of tax-free crypto profits by day and luxury living by night that is hard to match elsewhere. From Dubai's bold metaverse ambitions to Abu Dhabi's institutional-grade infrastructure and Ras Al Khaimah's Web3-first regulatory sandbox, each emirate plays a unique role in shaping the UAE as a comprehensive crypto haven. With visionary governance, cutting-edge infrastructure and a welcoming environment for innovators, the UAE isn't just accommodating crypto — it's actively shaping its global future. In 2025 and beyond, the UAE's message to crypto entrepreneurs is clear: Bring your ideas, bring your capital and build your future here. It's a call that's resonating around the world and one that continues to draw the blockchain elite to this crypto-friendly oasis in the desert. Source:
Arabian Business
2 days ago
- Business
- Arabian Business
Dubai eyes tokenised gold and DeFi after success of real estate tokenisation pilot
Dubai is mulling tokenised gold and decentralised finance (DeFi) investment projects, following the success of recent real estate projects. The news emerges as the Dubai Virtual Assets Regulatory Authority (VARA) revealed it has so far issued 36 full licences to entities operating in the virtual assets sector. Matthew White, CEO of VARA, said several hundred entities are currently at various stages of the licensing process, and new applications continue to be received from global firms seeking to expand in Dubai. VARA looks to expand Dubai crypto investment options He noted that the ecosystem now includes more than 400 registered entities involved in activities ranging from proprietary trading to blockchain technology services and other supporting operations. White highlighted VARA's strategic partnership with Dubai Land Department, launched in early 2025, aimed at enabling an innovative regulatory initiative that allows for fractional ownership of real estate through tokenised assets. He explained that this fractional ownership model enables individuals to own a share of a property without purchasing it in full, broadening access to real estate investment for those unable to buy entire properties. This model has reinforced Dubai's position as a global hub for real estate innovation and digital assets. The pilot phase of the project successfully listed two properties under the fractional ownership framework, attracting around 300 investors, 70 percent of whom were first-time property owners in Dubai. This, White said, demonstrates the project's appeal to new local and international investor segments. He expects that tokenised real estate will soon be included on trading platforms, enabling more accessible and liquid exchange of such assets. White also revealed that VARA is currently working on new pilot projects involving gold and decentralised finance (DeFi) products, which are being evaluated as digital alternatives to traditional finance. He stressed that VARA is committed to building a fully integrated regulatory environment that fosters innovation while ensuring the highest standards of legal certainty and investor protection. White noted that VARA's core responsibilities include establishing an enabling and supportive regulatory framework, promoting Dubai as a global centre for virtual assets, enhancing cooperation with international and local entities, and developing intelligent oversight tools to ensure compliance. The Authority also plays a key role in driving the growth of the digital economy. He affirmed that VARA does not operate in isolation but works in coordination with other regulatory bodies in the UAE, including: Securities and Commodities Authority Central Bank of the UAE Dubai Police Department of Economy and Tourism Other government institutions White added VARA has adopted a comprehensive supervisory and inspection framework, which begins with issuing clear and simplified regulatory guidelines. These include a detailed marketing rulebook with visual examples to help companies understand acceptable and non-compliant practices. Companies are also required to submit detailed data such as customer profiles, transaction records and funding sources, enabling VARA to analyse them using both automated and manual tools to ensure compliance. He added that VARA maintains a dedicated enforcement track, which investigates violations identified by supervisory teams and refers cases for actions such as issuing warnings, imposing fines, or revoking licences. He confirmed that VARA actively monitors and addresses any unauthorised activity within the emirate. White said the Authority employs a 'horizon scanning' system to detect unlicensed operations online or via other media, allowing legal action to be taken against violators, including closure of activities and seizure of proceeds if potential harm to the market is confirmed. Speaking about VARA's future legislative strategy, White described the Authority as a flexible regulator operating experimental regulatory programmes that allow it to assess risks from emerging business models and establish preliminary regulatory frameworks under direct supervision before integrating them into the full regulatory ecosystem. He noted that the establishment of VARA in 2022 marked a strategic milestone in line with the Dubai Economic Agenda D33, which aims to double the size of the emirate's economy over the next decade. He emphasised that VARA, as the world's first specialised regulator for virtual assets, was created not only to ensure a sound regulatory environment, but also to act as a key engine for sector growth, bolstering investor confidence and encouraging specialist entities to choose Dubai as their base.
Hi Dubai
2 days ago
- Business
- Hi Dubai
Dubai's Virtual Assets Regulatory Authority Issues 36 Licences as Virtual Asset Sector Expands
Dubai's Virtual Assets Regulatory Authority (VARA) has granted 36 full licences to entities in the digital asset sector, marking a major step in the city's bid to become a global hub for virtual finance and innovation. According to VARA CEO Matthew White, several hundred more firms are currently navigating the licensing process, with applications continuing to arrive from international players eager to enter the Dubai market. The ecosystem now spans over 400 registered entities involved in blockchain services, proprietary trading, and related fields. White highlighted a groundbreaking partnership between VARA and the Dubai Land Department that enables fractional ownership of real estate through tokenised assets. This initiative, launched in early 2025, has already attracted 300 investors—70% of whom are first-time property owners in Dubai—via the successful listing of two properties. Looking ahead, VARA plans to expand tokenised real estate offerings to trading platforms, enhancing accessibility and liquidity. The Authority is also piloting projects in tokenised gold and decentralised finance (DeFi), signalling further integration of digital alternatives into mainstream finance. Established in 2022, VARA plays a central role in advancing the Dubai Economic Agenda D33 by fostering innovation, ensuring investor protection, and building a regulatory environment that supports the growth of the digital economy. White reaffirmed VARA's commitment to enforcement and oversight, noting the use of data-driven supervision tools, detailed marketing guidelines, and proactive measures against unauthorised activity. The Authority works closely with other UAE regulators to ensure market integrity and consumer trust. News Source: Emirates News Agency
Zawya
2 days ago
- Business
- Zawya
VARA developing new pilot projects in gold, decentralised finance: CEO
The Dubai Virtual Assets Regulatory Authority (VARA) has so far issued 36 full licences to entities operating in the virtual assets sector. Matthew White, Chief Executive Officer of VARA, told Emirates News Agency (WAM) that several hundred entities are currently at various stages of the licensing process, and new applications continue to be received from global firms seeking to expand in Dubai. He noted that the ecosystem now includes over 400 registered entities involved in activities ranging from proprietary trading to blockchain technology services and other supporting operations. White highlighted VARA's strategic partnership with Dubai Land Department, launched in early 2025, aimed at enabling an innovative regulatory initiative that allows for fractional ownership of real estate through tokenised assets. He explained that this fractional ownership model enables individuals to own a share of a property without purchasing it in full, broadening access to real estate investment for those unable to buy entire properties. This model has reinforced Dubai's position as a global hub for real estate innovation and digital assets. The pilot phase of the project successfully listed two properties under the fractional ownership framework, attracting around 300 investors, 70 percent of whom were first-time property owners in Dubai. This, White said, demonstrates the project's appeal to new local and international investor segments. He expects that tokenised real estate will soon be included on trading platforms, enabling more accessible and liquid exchange of such assets. White also revealed that VARA is currently working on new pilot projects involving gold and decentralised finance (DeFi) products, which are being evaluated as digital alternatives to traditional finance. He stressed that VARA is committed to building a fully integrated regulatory environment that fosters innovation while ensuring the highest standards of legal certainty and investor protection. White noted that VARA's core responsibilities include establishing an enabling and supportive regulatory framework, promoting Dubai as a global centre for virtual assets, enhancing cooperation with international and local entities, and developing intelligent oversight tools to ensure compliance. The Authority also plays a key role in driving the growth of the digital economy. He affirmed that VARA does not operate in isolation but works in coordination with other regulatory bodies in the UAE, including the Securities and Commodities Authority, the Central Bank of the UAE, Dubai Police, and the Department of Economy and Tourism, as well as other government institutions. On the topics of oversight and enforcement, White said VARA has adopted a comprehensive supervisory and inspection framework, which begins with issuing clear and simplified regulatory guidelines. These include a detailed marketing rulebook with visual examples to help companies understand acceptable and non-compliant practices. Companies are also required to submit detailed data such as customer profiles, transaction records and funding sources, enabling VARA to analyse them using both automated and manual tools to ensure compliance. He added that VARA maintains a dedicated enforcement track, which investigates violations identified by supervisory teams and refers cases for actions such as issuing warnings, imposing fines, or revoking licences. He confirmed that VARA actively monitors and addresses any unauthorised activity within the emirate. White said the Authority employs a "horizon scanning" system to detect unlicensed operations online or via other media, allowing legal action to be taken against violators, including closure of activities and seizure of proceeds if potential harm to the market is confirmed. Speaking about VARA's future legislative strategy, White described the Authority as a flexible regulator operating experimental regulatory programmes that allow it to assess risks from emerging business models and establish preliminary regulatory frameworks under direct supervision before integrating them into the full regulatory ecosystem. He noted that the establishment of VARA in 2022 marked a strategic milestone in line with the Dubai Economic Agenda D33, which aims to double the size of the emirate's economy over the next decade. He emphasised that VARA, as the world's first specialised regulator for virtual assets, was created not only to ensure a sound regulatory environment, but also to act as a key engine for sector growth, bolstering investor confidence and encouraging specialist entities to choose Dubai as their base.
Crypto Insight
4 days ago
- Business
- Crypto Insight
Dubai won the real estate tokenization play
Opinion by: Irina Heaver, crypto lawyer The crypto markets are undergoing a hard reset. The speculative hype of 2021 is now a thing of the past. Memecoins and DeFi derivatives no longer move markets like they used to. Investors are no longer chasing vapor; they are looking for substance. They want tangible assets, real returns and real infrastructure. This is precisely where real-world assets (RWAs) come into play. In a market that's tired of pumps and dumps and desperate for durability, tokenizing assets like real estate, luxury goods and commodities offers a rare trifecta: tangible value, yield and access. No white paper fiction with mostly fake advisers, no tokenomics that benefit insiders and early VCs — just good old bricks, gold and oil, but onchain. In the UAE in particular, among all the RWA categories, real estate stands out as the most promising, and it's not hard to see why. RWA tokenization in Dubai For the first time, owning a piece of prime Dubai real estate no longer demands massive upfront capital. Tokenization has opened the gates, allowing anyone with a smartphone and a few hundred dollars to buy fractional shares in a luxury villa, a downtown apartment or a high-yield rental property in JVC. The promise of democratized investing, an idea that has been circling the industry for years, is no longer just theoretical but a framework grounded in law. In May, Dubai's Virtual Assets Regulatory Authority (VARA) introduced updated rules. The regulator created a new category of virtual assets: Asset-Referenced Virtual Assets (ARVAs), specifically designed to allow the compliant tokenization of real-world assets like real estate. Tokenized real estate in Dubai This new framework enables the issuance and trading of tokenized real estate on regulated exchanges or through regulated brokers. Issuers must obtain a Category 1 VARA license, meet capital requirements, undergo audits, publish white papers and make proper disclosures. It is a regulated, secure framework designed to support a new generation of global capital. And it's already delivering results. Last month, the Dubai Land Department, together with VARA and leading developers, oversaw the tokenization and sale of two apartments. The entire offering sold out within minutes. Buyers came from over 35 countries, and remarkably, 70% of them were first-time real estate investors in Dubai. This was not an institutional play; it was global retail, arriving with crypto wallets in hand, ready to purchase property onchain. Tokenization made it possible. The benefits aren't limited to investors. Developers finally have an alternative to traditional funding channels. Tokenization enables them to access global capital markets without relinquishing equity, incurring excessive debt with banks, or navigating painstakingly slow fundraising processes. Investors now can diversify across multiple properties rather than committing all their capital to a single deal. And with Dubai's rental yields consistently outperforming those of most major global cities, the value proposition speaks for itself. So why now? What's driving this surge in interest around RWAs? UAE's regulatory clarity around RWA tokenization In uncertain macroeconomic conditions, capital seeks hard assets. Commodities such as gold, oil and natural gas are beginning to look increasingly attractive. The UAE now offers both regulatory clarity and real market and infrastructure access. This was not always the case. The St. Regis Aspen Resort tokenization project, launched in 2018, raised $18 million and was among the first SEC-compliant real estate offerings onchain. It faced numerous challenges. The tokens were not listed on exchanges until 2020, which caused delays for investors seeking liquidity. Even after listing, trading volume remained low, and the token price dropped significantly from $1.32 to $0.85 by early 2022. Access to the offering was limited to accredited investors, and the project's switch from Ethereum to Tezos introduced additional complexity. Although many initially viewed the project as a failure, by 2024 the Aspen tokens had recovered and surged over 200%, indicating that the early struggles were more a result of the growing pains of a new model than a flawed concept. One of the most high-profile early attempts at real estate tokenization — the attempted tokenization of The Plaza Hotel in New York, powered by the same blockchain platform (Harbor) — never made it to market. Despite raising $28 million in venture funding and generating significant buzz, the project was ultimately shelved due to a web of operational, legal, and stakeholder complexities. These early setbacks revealed an uncomfortable truth: While the vision was sound, the surrounding ecosystem, technological, legal, and financial, simply was not ready. The US attempted to regulate 21st-century innovations with a legal framework built in the 1930s. It did not work. Founders looked elsewhere. And Dubai finally stepped up. The UAE didn't try to bend old rules to accommodate new tech. It built something new and that has made all the difference. Suppose you're a founder building a tokenization platform, a VC looking to back infrastructure plays, a family office allocating toward alternative assets, or a builder looking for the next high-impact vertical — if the UAE's RWA tokenization is not already on your radar, you're behind. The rails are built. The market is live. And while they used to say 'Habibi, come to Dubai' — now, Dubai is coming to you wherever you are, in the form of tokenized real-world assets. Opinion by: Irina Heaver, crypto lawyer Source:
