A real estate tokenization project will be implemented in Saudi Arabia, opening access to premium assets with a minimal entry threshold.
American company droppRWA, a subsidiary of Web3 developer droppGroup, in partnership with real estate developer RAFAL Real Estate Development Company, is launching a pilot program for real estate tokenization in Saudi Arabia, reports Economy Middle East.
As part of the initiative, droppRWA, with the participation of leading consulting firms, will conduct a comprehensive feasibility study for tokenizing properties from RAFAL’s portfolio. According to the press release, the plan is to tokenize luxury real estate in Riyadh, the capital of Saudi Arabia. After placing the assets on the blockchain, all citizens of the country will have access to them. The minimum investment amount will be only 1 riyal (~$0.27).
The project aims to demonstrate the technical feasibility of real estate tokenization in the region and serve as a benchmark for future initiatives in this area. According to Elias Abusamra, CEO of RAFAL, the initiative will democratize the market by providing access to highly liquid assets to a broad audience, including young investors who were previously excluded from such projects due to high entry barriers. He also added that Saudi Arabia could become a leader in developing the digital economy, where every citizen can become a co-owner of a real asset by investing a minimal amount.
Faisal Al Monai, Co-Founder of droppRWA, said that in the long term the initiative aims to attract foreign institutional investors. In his view, success in this context can only be achieved through a transparent digital infrastructure.
The project is part of the global government strategy Vision 2030, which envisages digital transformation, improved financial inclusion, and expanded economic opportunities for Saudi citizens. As part of this strategy, the Cultural Universe Metaverse was launched. As of 2022, there were approximately 3 million active crypto investors in the country, who completed transactions totaling $48 billion from July 2023 to June 2024.
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