Saudi Arabia launches real estate tokenisation infrastructure

The Kingdom’s Real Estate Registry will provide the digital infrastructure to support end-to-end digital transactions in real estate registration, marketplace integration and fractionalisation.

The initiative is regarded as the first national-scale venture of its kind, aiming to introduce new forms of investment and financing into the property market, by moving payment verification and title management onto blockchain technology.

Real estate tokenisation refers to rights in physical property through virtual assets, primarily digital tokens. The rights in a single property can be represented by multiple digital tokens, enabling fractional ownership and broader investor participation.

Jessa White a digital financial regulation expert with Pinsent Masons in the Middle East, said the project could unlock significant opportunities in Saudi Arabia.

“This opens up the potential for a much wider range of investment opportunities, so companies should now be evaluating what the implications will be for them,” she said.

“It is important firms start engaging with the new regulatory framework to get in front of the changes it brings to the sector.”

The launch follows a tokenisation pilot earlier this year as part of KSA’s Vision 2030 strategy to modernise the property sector and increase global investment in the country.

Saudi Arabia aims to build on best practice approaches developed in Europe, Japan and Singapore, adapting them for the Saudi market. The framework incorporates global interoperability standards and Shariah-compliant asset structures to ensure that digital ownership tokens are both legally enforceable and internationally credible.

Under the new system, an integrated regulatory framework will be introduced. The Real Estate Registry will  operate the digital property register, while the Real Estate General Authority (REGA) will oversee supervision and set data governance standards for the real estate market.

In June, KSA launched its own real estate tokenisation pilot under the REGA, while Dubai began a real estate tokenisation project in March through a joint collaboration by the Dubai Land Department and the Virtual Assets Regulatory Authority - the first time a real estate registration authority in the region implemented tokenisation for property title deeds. Qatar is also piloting its own tokenisation programme.

Marie Chowdhry, a fintech expert with Pinsent Masons in the Middle East, said “We’re now seeing the Gulf move from proofs-of-concept to institutional-grade market infrastructure. Saudi Arabia’s initiative, alongside programmes in Dubai and Qatar, points to a regional architecture where digital property rights can interoperate, inviting cross-border investment while maintaining local legal and Shariah integrity”.

“Those interested in exploring business growth opportunities in this space should start by mapping product typologies, custody and settlement flows, and disclosure obligations to the new framework and then pilot investor on-ramps and secondary trading protocols.

“Those who do this groundwork early on will gain a structural advantage over others exploring this new regulatory space.”