Real Estate Tokenization... From Ownership by Stone to Ownership by Token
Real Estate Tokenization... From Ownership by Stone to Ownership by Token
Dr. Imad Al-Abdulrahman Dr. Imad Al-Abdulrahman
Amidst the major transformations that the Saudi economy is experiencing in the light of the good vision 2030, the real estate sector is heading to a pivotal stage that is no less important than the ownership boom or housing programs. It is the stage of «digitizing real estate ownership» through what is known globally as “Real Estate Tokenization«, a qualitative shift that carries with it unprecedented economic and investment dimensions and opens a wide door to diversify the sources of national income, beyond the concept of real estate as a mere fixed asset or means of housing. We can define real estate tokenization as a way to diversify the sources of national income.
<We can define a real estate token as »a digital unit that represents an ownership stake in an actual real estate, which is traded on approved investment platforms supported by blockchain technology«. This means that a property worth SAR 10 million can be divided into 100,000 tokens, each of which can be legally owned, sold and inherited, without the need to buy the entire property or go through cumbersome traditional procedures.» Token is a digital unit that represents an ownership stake in a physical property, which is traded on certified investment platforms backed by blockchain technology.
<For the first time in the history of the real estate market, young people, middle-income earners, and even foreign investors will be able to enter the Saudi real estate market for as little as 1,000 riyals.
<The result will be a major shift in the philosophy of ownership from «individual monopoly» to «collective participation». Real estate tokenization is an opportunity to move stagnant liquidity, increase the depth of the market, and expand the circle of beneficiaries of real estate returns.
In economic terms, "real estate tokenization" is a promising tributary in the system of diversifying non-oil sources of income by: Creating a new market.
Creating an entirely new market for real estate trading through digital tokens, which creates new financial flows for the state from trading fees, value tax and registration.
<Encouraging foreign direct investment without the need to own the entire property, which increases the attractiveness of the Saudi real estate market under the new ownership laws.
Enabling tech startups in the fields of blockchain, cybersecurity, digital real estate finance, creating job opportunities and boosting local content. Enabling tech startups in the fields of blockchain, cybersecurity, digital real estate finance, creating job opportunities and boosting local content.
<In addition to improving the efficiency of real estate assets by operating and trading them instead of leaving them closed or frozen. In this equation, real estate is transformed from a silent asset to an active economic engine that boosts GDP and feeds the national economy with sustainable digital tributaries.
Economic writer
