The United Arab Emirates (UAE) is emerging as a powerhouse in real-world asset (RWA) tokenization, driven by progressive regulations and increasing demand for blockchain-based financial solutions. Tokenization—converting physical assets into digital tokens—has reached an all-time high of $17 billion, setting the stage for a major investment trend in 2025.

Scott Thiel, CEO of Tokinvest, a UAE-regulated RWA platform, stated that developers and major real estate firms are aggressively exploring tokenization as an alternative financing method. Dubai, known for its booming property market, has become a hotspot for blockchain-powered real estate investments.

In January, blockchain firm Mantra secured a $1 billion deal to tokenize properties from the Damac Group, a UAE-based conglomerate. This deal cements Mantra’s dominance in the region, especially after securing its Virtual Asset Regulatory Authority (VARA) license on Feb. 19. OKX MENA CEO Rifad Mahasneh confirmed that real estate is leading the UAE’s tokenization boom, with rising interest from finance, fashion, and venture capital sectors.

Despite real estate’s dominance, experts predict diversification into other assets like carbon credits and intellectual property. Regulatory certainty has played a crucial role in the UAE’s success, with Thiel highlighting how global markets like the U.S. and Europe still lack clear guidelines for RWAs.

John Patrick Mullin, CEO of Mantra, believes the UAE’s tech-savvy population and resource-rich economy provide a unique advantage. He predicts that younger generations will drive the adoption of tokenization, transforming traditional markets across the region.

With the UAE leading the charge, RWA tokenization is no longer a niche trend but a defining force in the future of blockchain-based finance.