First Tokenized Property Deal: Real Estate Tokenization Arrives in Saudi Arabia

Jun 19, 2025

The first-ever tokenised real estate transaction in Saudi Arabia has shown that the nation is making a brave entry into the blockchain era. The step is a significant stride in its Vision 2030 agenda to diversify the economy, increase financial inclusion, and adopt digital innovation.

Key Highlights:

First-Ever Tokenised Real Estate Deal in Saudi Arabia
Ultra-Low Entry Point for Investors
Retail & Institutional Participation
Aligned with Vision 2030
Blockchain-Powered Transparency
Global Capital Attraction
Pilot Phase Underway

What’s Happening

Rafal Real Estate, a Saudi developer, has teamed up with U.S.-based Web3 company droppRWA to roll out a pilot project that will enable retail as well as institutional investors to purchase fractional ownership in high-value properties as low as 1 Saudi riyal- approximately €0.23.

The project is not subject to the old paradigm, where one has to invest large sums to gain access to the highly profitable property business in Saudi Arabia, but rather democratises it by allowing investment in Saudi Arabia with as little as a nominal investment.

Why It Matters?

Democratized Investment: With the entry barriers reduced to 1 riy, small investors and regular citizens may now enter the arena, no longer restricted to high-net-worth individuals or institutional investors.
Digital Transformation: The pilot project uses the tokenisation of real-world property through blockchain smart contracts, providing an open ledger of ownership history and enabling quick and easy transactions.
Economic Diversification: In line with Vision 2030, the initiative boosts plans to cut the oil dependency, improve technological infrastructure, and increase foreign investment.
Global Capital Flow: The ability to do fractional ownership on top of blockchain platforms unlocks foreign institutional investment, which brings liquidity and diversity to the local market.

As stated by Rafal and DroppRWA, the tokenisation plan involves carrying out feasibility studies on the properties owned by Rafal to select appropriate assets that will be offered in the future digitally

What’s Next?

Pilot Launch: The tokenised asset has not been announced yet; however, the pilot is supposed to be launched very soon.
Scaling the Model: Should this be successful, it can be implemented in the large real estate industry in Saudi Arabia.
Regulatory Support: Regulatory frameworks will likely appear as the financial authorities in Saudi Arabia keep an eye on the results of their efforts, following the initial steps that have already been made in the UAE, Dubai, and other countries focused on blockchain.

Final Thoughts:

The tokenisation of a property in Saudi Arabia is not just another technology experiment, but it is a real game-changer in the real estate investment sphere. This pilot has the potential to transform ownership structures in Saudi Arabia, as well as placing the country on the global PropTech radar, due to allowing ultra-low entry, facilitating transparency, and openness to international investors.