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A real estate tokenization initiative is set to be launched in Saudi Arabia, providing access to premium assets with a low entry threshold.
The American firm droppRWA, a branch of Web3 developer droppGroup, in collaboration with real estate developer RAFAL Real Estate Development Company, is initiating a pilot program for real estate tokenization in Saudi Arabia, as reported by Economy Middle East.
As part of this project, droppRWA, alongside prominent consulting firms, will carry out an extensive feasibility study for tokenizing properties from RAFAL’s portfolio. The press release indicates that the intention is to tokenize luxury real estate in Riyadh, the capital of Saudi Arabia. Once the assets are placed on the blockchain, all citizens of the nation will have the opportunity to access them. The minimum investment required will be just 1 riyal (~$0.27).
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The objective of the project is to showcase the technical viability of real estate tokenization in the region and to set a standard for future endeavors in this field. Elias Abusamra, CEO of RAFAL, stated that the initiative will democratize the market by granting access to highly liquid assets to a wider audience, including younger investors who were previously barred from such projects due to significant entry barriers. He also mentioned that Saudi Arabia has the potential to lead in the development of the digital economy, where every citizen can become a co-owner of a tangible asset by investing a minimal sum.
Faisal Al Monai, Co-Founder of droppRWA, noted that the long-term goal of the initiative is to attract foreign institutional investors. He believes that success in this area can only be realized through a transparent digital infrastructure.
This project aligns with the global government strategy Vision 2030, which aims for digital transformation, enhanced financial inclusion, and increased economic opportunities for Saudi citizens. As part of this strategy, the Cultural Universe Metaverse was introduced. As of 2022, there were around 3 million active crypto investors in the country, who executed transactions totaling $48 billion from July 2023 to June 2024.
The message Real Estate to Be Tokenized for First Time in Saudi Arabia first appeared on CoinsPaid Media.
