The Real Estate General Authority (REGA) has completed the first “Real Estate Tokenization” process for a title deed in the Kingdom.
The tokenized asset was traded between NHC and several investors, marking the first innovation of its kind to be conducted under government regulatory oversight as part of REGA’s efforts to lead the future of digital real estate solutions.
Signed under the patronage of the Minister of Municipal and Rural Affairs and Housing and Chairman of the Real Estate General Authority (REGA), His Excellency Majid bin Abdullah Al Hogail, this real estate 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 the “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.
