The Dubai Virtual Assets Regulatory Authority (VARA) issued a consumer and marketplace alert on market communications about Dubai’s Real Estate Tokenisation Pilot and tokenised real estate products offered in or from Dubai. VARA confirmed that the pilot’s initial phase has been completed and that the initiative has moved into a controlled testing and evaluation phase, while reiterating that any offering, marketing, or facilitation of tokenised real estate products requires the appropriate regulatory approvals. Phase 1 validated the core technological architecture, regulatory framework, and operational feasibility for tokenising real estate assets in Dubai. Phase 2 is focused on testing additional functionalities, including secondary-market mechanisms, and on determining the scope, sequencing, and conditions for any future expansion, under close oversight and continued coordination between the Dubai Land Department and VARA. VARA also cautioned that some entities may be referencing the pilot in promotional materials or marketing claims without the necessary approvals or implying participation beyond what has been formally authorised; market participants are directed to rely only on formal VARA communications and to verify firms via VARA’s Public Register. The alert reiterates that virtual asset activities in or from Dubai are regulated under VARA’s Rulebooks and cannot be conducted without the required licence or approval under Dubai Law No. (4) of 2022 and Cabinet Resolution No. 111/2022. Further updates are expected from the relevant authorities as the evaluation phase progresses and subsequent steps are formally confirmed.

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