The Kingdom is entering the final countdown for its June 2026 real estate tokenization rollout, moving to turn its skyline into a digital asset class by trading physical deeds for programmable code. Using an approach that would see regulators, businesses, and technology providers align and exchange ideas, Saudi Arabia wants to bypass the traditional friction of capital markets by creating a direct digital reflection of the national land registry.

We sat down with Saleh Alghamdi, CEO of Ghanem, and Adam Popat, CEO of SettleMint, to look under the hood of Saudi Arabia’s top-down approach to digitizing, tokenizing, and eventually fractionalizing the entire property market. Ghanem is among the proptechs licensed to operate in the Real Estate General Authority's tokenization sandbox, and Settlemint is the tokenization infrastructure provider for the Real Estate Registry (RER).

Uh, Enterprise… What's a token? Think of a token as a digital certificate of ownership that lives in a decentralized ledger (called a blockchain) rather than in a filing cabinet. Real estate tokenization takes an asset — like an office tower — and slices it into mns of identical digital units, similar to how a company issues shares of stock. Tokens are “programmable,” meaning the rights attached to them are baked into the code: a token can represent a direct fraction of the property deed or simply a right to a share of the rental income.

The pitch

Adios, middlemen: Selling an asset can take days to settle in traditional capital markets. That lag disappears on the blockchain, according to Popat. The blockchain eliminates intermediaries and settlement delays, allowing transactions to happen instantaneously because the parameters are pre-programmed into smart contracts. “You don't need the backend settlement infrastructure. You don't need the various third parties,” Popat said.

The investor’s journey is automated under the system, starting with purchasing the token via the app. Investors will then receive updates and rental income via the app, and can choose to exit via a trading platform or at the end of the property’s timeline.

It’s a deed, just digitally dressed up: A digital token will hold the same legal weight as a physical piece of paper, according to Alghamdi. Tokens will be visible on government platforms like Absher and Tawakkalna. The token label is simply a way to manage high numbers of investors and collective voting rights, Alghamdi says.

Could tokenization drive up prices? Alghamdi isn’t concerned, pointing to well-informed Saudi investors and a proactive regulator. With no trading platforms yet, authorities still have room to set pricing and premium controls to safeguard the market. Popat agrees, arguing that tokenization is a net positive — lowering barriers for middle-class and foreign investors while supporting liquidity, even in risk-off periods.

Playing in the sandbox

The REGA Regulatory Sandbox serves as a high-tech laboratory where firms like Ghanem stress-test the limits of current laws before the full framework goes live. Currently fully integrated with the RER, the firm is operating at scale while awaiting the final approval of the national tokenization law.

What it takes to graduate: Alghamdi says the path to a permanent license has two stages — sandbox testing and full graduation. Participants submit weekly reports and undergo continuous audits, but Alghamdi describes the relationship as a “two-way street” — firms comply with strict rules while pushing regulators to expand what’s allowed.

Final approval hinges on the new tokenization law and meeting two key criteria — proving a viable business model — think profitability, local hiring, and governance — as well as ensuring investor protection.

Democratizing the skyline

Historically, premium Saudi real estate was the playground of high-net-worth individuals (HNWIs). Tokenization changes the math, allowing new players to pump capital into and reap the rewards of these assets, Alghamdi argues.

This creates a new demographic of Saudi property owners, according to Alghamdi. Diversifiers look to spread risk across multiple assets rather than one large property. Ghost investors want real estate exposure without the headache of brokers, WhatsApp messages, and property management. Micro investors can now enter the market with as little as SAR 1k.

Ghanem is also positioning its fractional real estate platform as a tool for developers to unlock capital faster. “Instead of paying SAR 2 mn for the property, you can pay only SAR 50k and get part of the property and benefit from distributions and rental income,” Alghamdi explains.

Meshing with reforms

With the Foreign Ownership Law on the horizon, the infrastructure is being built with compliance in mind. The system uses geo-fencing and eligibility tiers to enforce national restrictions automatically.

That means “no-go” zones can be baked into the system: The platform can be programmed to recognize a user’s residency or religion and automatically block transactions in restricted zones if the user does not meet the criteria. “If the regulation says foreigners must not be able to own property in various places [like Makkah or Madinah], then that can be programmed directly into the tokens,” Popat explains.

Ready this year? Despite these necessary guardrails, the opening of the gates is expected to bring a massive surge of global liquidity. Alghamdi expects non-Saudi investor capabilities to launch within the next five months.

Looking ahead

Ghanem wants to move into the off-plan frontier: While it is currently focusing on ready-made properties, Alghamdi tells us his firm is exploring tokenizing off-plan properties with the regulator. On the tech side, Popat tells us the capability is already there. “The technology could handle [off-plan] today,” Popat notes, pointing instead to the need to “flesh out the rules… in a tokenized environment.” The platform can already support conditional minting and escrow tied to construction milestones, leaving regulation as the final hurdle.

Settlemint is also beta testing the marketplace: The current focus is on developing the "marketplace" side, including pricing feeds and escrow arrangements. Popat noted that while compliance is built into the smart contracts, the specific rules for marketplace governance are still being discussed with REGA and will likely be reflected in the next six to 12 months.

Could we see a regional (GCC) tokenized market? Popat believes a regional market is technically feasible if technical and regulatory standards are harmonized, though no formal political discussions have started yet.

Tags: