Owning Property Tokens in Dubai
Dubai has taken a big leap in real estate innovation — and it's opening doors for small investors. Thanks to blockchain-backed tokenisation, even owning a share in Dubai property is now possible.
But while this trend sounds exciting, many UAE-based investors do not fully understand the legal side of it. Vishal Tinani, Corporate Lawyer & Regulatory Affairs Specialist, breaks down what you need to know before investing in tokenised property.
First: What is Tokenised Property?
Tokenised real estate means your share of a property is represented by a digital token, recorded on a blockchain. These tokens can give you rights to a portion of rent, profit, or even future sale value.
But ownership is only legally valid if it’s registered with the Dubai Land Department (DLD).
Invest in Dubai property with just Dh2,000: Step-by-step guide
“The DLD is the first real estate registry in the region to adopt blockchain-based tokenization,” says Tinani. “It now issues legally enforceable Property Token Ownership Certificates linked directly to title deeds.”
This became possible through Dubai’s REES (Real Estate Evolution Space) pilot initiative, run by DLD with support from the Dubai Future Foundation, VARA, and the UAE Central Bank.
Is it regulated?
Yes — and in fact, multiple regulators are involved.
The Dubai Land Department (DLD) governs the property and title registration part.
VARA (Virtual Assets Regulatory Authority) handles digital tokens and platforms.
RERA and SCA step in to protect investor funds and enforce marketing rules.
Tinani explains that tokenised real estate is legal and enforceable in Dubai — but only if the platform is licensed and the token is properly linked to a real title deed or legal ownership structure.
How are investors protected?
If you’re a small investor, you’re not on your own.
Dubai law includes safeguards like:
Escrow accounts to protect money in off-plan projects
Risk warnings and investor profiling
Limits on how tokens are marketed to avoid misleading claims
Tinani adds, “Retail investors must be clearly informed about the risks, and platforms must not misrepresent tokenised offerings as low-risk or guaranteed returns.”
In short: transparency is mandatory.
How does blockchain help?
Blockchain helps by making everything visible and secure. Smart contracts — digital agreements — handle profit-sharing, resale limits, and ownership transfers automatically.
But Tinani cautions that blockchain tech doesn’t replace legal paperwork.
“Only DLD-registered title deeds or approved tokenised certificates confer enforceable ownership rights,” he explains. “Smart contracts must support, not replace, formal title.”
What about foreign investors?
If you’re investing from abroad, here are three legal points to keep in mind:
UAE rights may not apply abroad:
Other countries might not recognise Dubai’s tokenised property rights. If legal trouble arises, you may not be able to enforce ownership outside the UAE.
UAE courts have final say:
All property disputes must go through UAE courts, not your home country — unless there’s a treaty in place.
Offshore platforms = extra risk:
If tokens are held in wallets or managed by platforms outside the UAE, legal protection under UAE laws may not apply if something goes wrong.
Are there legal benefits?
Yes — especially for foreign investors:
Full property ownership in Dubai freehold zones (like Downtown, Marina, Business Bay)
Use of Special Purpose Vehicles (SPVs) and funds in DIFC or ADGM, which follow international common law and recognise digital assets
0% income tax and free capital repatriation
“Dubai is currently at the global forefront of real estate tokenization,” says Tinani. “It offers a legally sound and tech-forward system for investors of all sizes.”
Final takeaway: What should you do?
If you're considering investing in a tokenised property in Dubai, check three things first:
Is the platform licensed by VARA or DLD?
Is the token linked to a real DLD-registered title or legal ownership?
Do you fully understand the risks and structure?
Dubai’s legal system is adapting fast to support digital property, making fractional ownership more accessible than ever. But as with any investment, legal clarity is your best friend.
