Real-world asset (RWA) tokenization presents a significant opportunity for the GCC, with a potential market size of nearly $500 billion by 2030. The report highlights the benefits of tokenization, including increased liquidity, accessibility, transparency, distribution efficiency, and cost reduction.
The global RWA tokenization market is experiencing high-velocity growth, with the on-chain market size expanding from $1.1 billion at the start of 2023 to nearly $20 billion in January 2026, representing a compound annual growth rate (CAGR) of over 160%. Investor participation has also surged, with more than half a million tokenized asset holders by January 2026. Key asset classes driving growth include US Treasury debt, commodities, institutional alternative funds, private credit, and stocks.
For the GCC, the most fertile ground for tokenization lies in private markets, funds, and bank deposits. The report estimates that by 2030, nearly $500 billion of assets across the GCC could be represented on-chain. Specifically:
- Private markets: Representing the largest opportunity, with potential tokenization value of $154 billion by 2030. Tokenization can expand access to private companies, reduce barriers to entry, and automate governance and reporting processes.
- Funds: Tokenization offers benefits for both fund managers and investors, including enhanced liquidity, streamlined operations, and greater portfolio visibility. The UAE's Virtual Assets Regulatory Authority (VARA) recently granted in-principle approval for Laser Digital to tokenize its flagship Laser Carry Fund.
- Bank deposits: Tokenization can enable real-time institutional settlement, optimized treasury operations, and programmable commercial payments. Several GCC banks are exploring tokenized bank deposits as an alternative to stablecoins.
- Real estate: Tokenization facilitates fractional ownership and enhanced liquidity. The Dubai Land Department and Ctrl Alt have launched a Real Estate Tokenization Project, aiming to bring AED 60 billion worth of assets onto the platform by 2033. Saudi Arabia has also launched a national real estate tokenization infrastructure.
- Commodities: The UAE, a global hub for commodities trading, is actively pursuing commodity tokenization. Tokenized products like Tether Gold and PAX Gold have demonstrated significant traction. Opportunities exist for tokenizing precious metals, gems, oil and gas, and carbon credits.
For tokenization to thrive, three key elements are essential:
- Clear laws and regulations: The report identifies fragmented approaches, diverging protection standards, and inconsistent safeguards as major challenges. The introduction of the CLARITY Act in the US could potentially shape global standards.
- A strong, integrated technology foundation: Integration with existing asset ownership systems and ensuring interoperability between different blockchains are critical challenges.
- Robust market infrastructure: The development of reliable mechanisms for issuance, trading, settlement, and asset servicing is crucial for scalable tokenization.
The GCC is well-positioned to support tokenization at scale due to its progress in developing regulatory frameworks, technological infrastructure, and market infrastructure. The region's strong central banks, concentrated financial ecosystems, and ambitious digital agendas hold the promise of faster coordination and collaboration. Financial institutions, asset managers, and sovereign investors are expected to be the primary catalysts for adoption, with banks focusing on tokenized deposits, capital markets institutions exploring tokenized funds and securities, and sovereign wealth funds considering tokenized structures for their allocations.
The next phase will involve executing on the vision, turning pilots into live markets, aligning stakeholders around shared standards, and investing in the platforms that allow tokenized assets to circulate at scale. The GCC has the potential to play a leading role in the future of tokenization, reshaping how capital is issued, traded, and allocated.
