Under the patronage of His Excellency the Minister of Municipal and Rural Affairs and Housing and Chairman of the Real Estate General Authority (REGA), Mr. Majid bin Abdullah Al Hogail, REGA announced the successful completion of the first "Real Estate Tokenization" process for a title deed in the Kingdom, and its trading between NHC and a number of investors, marking the first innovation of its kind to be implemented under governmental regulatory supervision. This is part of “Authority’s” efforts to lead the future of digital real estate solutions.
The Authority affirmed that tokenization addresses one of the biggest challenges facing the real estate sector: the immense value of the asset and the difficulty of fractionalizing it. Tokenization grants the ability to convert large ownerships into small, tradable digital units, allowing investors to own shares in a single asset, expanding the investor base, increasing market liquidity, and accelerating the financing process for real estate projects.
The Authority clarified that the Kingdom is considered one of the first countries globally to work on regulating real estate tokenization and setting the first official tokenization standards for converting ownerships into encrypted, machine-readable digital tokens and linking them to official real estate registers. This move is designed to enhance the reliability of transactions and preserve the rights of all parties. The Real Estate Registry Company has worked to raise the readiness of the technical infrastructure by adopting the latest global practices, incorporating advanced technologies, and building international partnerships to enable the Real Estate Registry to comply with digital transformations and provide reliable data to real estate platforms, thereby supporting the growth of the digital asset market in the Kingdom.
The Authority further indicated that "Real Estate Tokenization" represents a qualitative leap in real estate regulations. It enables the building of a more efficient and transparent market by converting real estate assets into digital formats capable of immediate processing and integration with governmental systems, thereby enhancing governance and raising the level of compliance.
REGA noted that, as part of supporting the sector's digital infrastructure, it will publish the technical specifications for the tokenization standards at the beginning of 2026. This is intended to empower real estate technology companies and digital solution providers—through the Regulatory Sandbox Environment, one of the initiatives of the Saudi PropTech Hub (SPH)—to build innovative products that are compatible with national standards, support data integration, and enhance market readiness for the transition towards digital assets.
It is noteworthy that this direction falls within Authority’s continuous endeavors to enable real estate investment, develop supportive legislation, expand financing tools, and build a more attractive, transparent, and sustainable real estate market, reflecting the Kingdom's leadership in adopting future technologies for the real estate industry.