The Gulf has USD 500 bn of untapped tokenization potential

The Gulf is sitting on a USD 500 bn untapped potential. According to a recent report (pdf) by management consultancy Kearney, asset tokenization — the process of converting physical and financial assets into blockchain-based digital tokens — is poised to reshape the region’s economy by 2030. This shift promises to unlock fractional ownership, accelerate settlements, and streamline asset transfers within regulated markets.

The breakdown: Private markets represent the largest potential at around USD 154 bn, reflecting persistent liquidity and access constraints. Public equities follow at roughly USD 121 bn, alongside bank deposits at about USD 84 bn, funds (USD 58 bn), real estate (USD 52 bn), and commodities (USD 14 bn).

Digital asset regulation across the GCC is advancing at uneven speeds. The UAE and Bahrain lead with comprehensive frameworks covering tokenization, trading, crypto payments, sandboxes, and virtual asset service providers.

Saudi Arabia is taking a more measured, institutional-first approach. As a comprehensive virtual assets framework is still pending, we launched national real estate tokenization infrastructure in November 2025 while restricting retail crypto and prioritizing productive assets, with broader policy clarity expected in 2026. Qatar and Oman have basic but restrictive frameworks, while Kuwait has yet to show formal regulatory progress.

From pilot to execution: With asset classes identified, meaningful scale emerging, and early regulatory and infrastructure foundations in place, the GCC’s focus is shifting from theory to execution, the report said. Moving beyond pilot projects now depends on resolving structural challenges, particularly regulatory clarity and integrating blockchain systems with existing financial frameworks.

The next phase hinges on the region’s institutional heavyweights — sovereign wealth funds, banks, and large developers — to provide the scale and credibility needed to build liquid markets for tokenized assets. Ultimately, success will depend on how effectively the GCC aligns standards and develops platforms that allow these assets to circulate at scale.