Saudi Arabia completes the world’s first tokenised property deed transaction. This deal marks a major step in using blockchain for real estate. It happens between the National Housing Company and the Real Estate Development Fund.
Key Players Involved
Majed Al Hogail, the Minister of Municipalities and Housing, leads this effort. The National Housing Company transfers the property title to the Real Estate Development Fund. droppRWA runs the blockchain platform that connects to Saudi Arabia’s Real Estate Registry.
The platform creates a digital token that matches the official property record. Developers then issue another token to pass ownership. Smart contracts check all rules and settle the deal in seconds.
How It Works
In this system, buyers and sellers finish transactions right away. No more waiting days for paperwork. The tokenised deed follows Saudi real estate laws built into the blockchain code.
This setup turns property into easy-to-trade assets. Investors can now program shares or fractions of buildings. It opens doors for more money from outside Saudi Arabia. Saudi leaders push this under Vision 2030. They want a modern real estate market with tech like PropTech and AI. No other country in the G20 has coded its property rules this way first.
Benefits for Market
Settlement times drop from days to seconds. This speeds up deals and cuts costs. Liquidity rises as properties become like stocks; anyone can buy or sell fast.
Foreign cash flows in more easily. It helps build more homes and projects. The government aims to list trillions in real estate assets on global markets. Faisal Al Monai, CEO of droppRWA, says the tech includes full standards for tokens and payments. It skips old methods that lacked real legal backing.
Leader’s View
Majed Al Hogail says this tokenised property deed transaction changes the game. It draws more people to invest in and own property. Financing gets quicker, and new tech firms grow in special zones. He points out that Saudi Arabia leads the world in this shift. The country builds a digital real estate system from the ground up. Future deals will use this nationwide.
Road Ahead
Plans call for rolling out this tech across the country. It covers homes, offices, and big developments. Special economic zones get priority to test and scale up.
This digital token fits Vision 2030 goals for a cashless, digital economy. Saudi Arabia sets a model for others to follow in real estate tokenisation. More transactions are coming soon to boost growth and jobs. The deal proves blockchain works with local laws. It brings trust and speed to a huge market. Saudi Arabia stays ahead in the global PropTech race.
