New Era: Saudi Approves 9 Firms for Real Estate Tokenization. Digital Revolution?

Investing in Saudi real estate has always been associated with a high entry barrier; you either possess millions to buy a complete asset, or you simply watch from afar. But now, the rules of the game have changed completely. In a move described as the "boldest" in the history of the Saudi real estate market, the General Authority for Real Estate announced giving the green light to 9 technology companies to actually start Real Estate Tokenization operations.

This is not just passing news, but an official announcement of the start of the "real estate democratization" era. Investing in luxury assets is no longer exclusive to major institutions or the wealthy; small investors can now enter the market through fractional and documented digital shares. But how does this technology work? Who are the nine licensed companies? And most importantly: How do you ensure you are putting your money into a winning "token" and not just a digital bubble?

In this comprehensive report, we put in your hands everything you need to know about this historical shift in Saudi real estate, and how you can benefit from it safely with the help of experts at Skyline Holding.

Decision Details: 9 New Gateways to Digital Real Estate

The official spokesperson for the Real Estate Registry, Yazeed Al-Yahya, revealed in recent press statements that nine technology companies have been allowed to tokenize real estate and sell it as digital shares, within the Regulatory Sandbox supervised by the General Authority for Real Estate. This step comes as a culmination of efforts that have continued since late 2024 to prepare the legislative and technical infrastructure.

Who Are the Nine Licensed Companies?

According to the official announcement, the list includes promising technology platforms that will play the role of "digital broker" between the property owner and the small investor. The list includes:

1. Ghanem
2. Jozo
3. Sahl
4. Madak
5. Nola
6. HissaTech
7. Hseel Tech
8. Dropp
9. Gamma Assets

These companies will currently operate under the umbrella of "legislative experimentation," which means they are subject to strict supervision to ensure the protection of investors' rights and test the efficiency of systems before the full launch of the final regulations expected in mid-2026.

What is Real Estate Tokenization?

Simply put, real estate tokenization is the process of converting the physical property title deed (building, land, commercial mall) into millions of small digital units called "Tokens," registered via Blockchain technology.

Example:

Let's assume there is a commercial building in the Al-Malqa neighborhood in Riyadh worth 100 million Riyals.

• In the past: Selling it required finding a single buyer who owns this huge amount.
• With Tokenization: The property is divided into 100,000 digital tokens, the value of each token is 1,000 Riyals.
• The Result: You can buy only 5 tokens (with an investment of 5,000 Riyals), become an official partner in the property, get your share of annual rents, benefit from the asset's value appreciation when sold, and you can also sell your tokens (your share) via real estate tokenization platforms.

For more technical details about the mechanism, you can review our previous guide on Real Estate Tokenization in Saudi Arabia: How to Safely Own Digital Real Estate Shares?.

Why is this Decision Considered a "Turning Point" for Saudi Real Estate?

The Saudi real estate market is going through an unprecedented stage of maturity, especially with the entry into force of the new foreign ownership law in January 2026. The entry of tokenization technologies enhances the market's attractiveness for three main reasons:

1. High Liquidity

Real estate is an excellent investment but "heavy"; selling a building may take months. As for real estate tokens, they can be sold in seconds via licensed platforms, just like selling stocks.

2. Absolute Transparency

Every real estate token is linked to a digital deed documented with the Real Estate Registry. There is no room for manipulation in ownerships or double selling, as blockchain technology and General Authority for Real Estate authentication guarantee the validity of every transaction.

3. Investment Portfolio Diversification

Instead of putting all your savings in one apartment (and bearing the risks of the neighborhood or tenant), you can distribute the same amount across 10 different properties (residential in Riyadh, commercial in Jeddah, logistics in Dammam) via real estate token trading and selling platforms.

How to Protect Yourself Before Buying a Token?

Here we reach the core point that many overlook amidst the tech enthusiasm. The digital token is nothing but a mirror of the real real estate asset. If the property is bad, its token will be a loser, no matter how advanced the technology platform is.

At Skyline Holding, we see that our advisory role has become more important today than ever. We do not sell tokens, but we help you analyze the real estate asset before you make the decision to buy via these platforms.

How Do We Help You?

• Evaluating Property Location: Is the property offered for tokenization located in a growth area (like Green Riyadh project areas) or a recession area?
• Rental Yield Analysis: Are the platform's promises of returns (e.g., 8% or 10%) realistic compared to current market average prices? (Check our analysis on real estate price decline and market correction).
• Due Diligence: For large investors wishing to tokenize their assets, we offer the service of preparing the property and raising its efficiency to be attractive when launched on tokenization platforms.

Golden Advice: Do not buy the token just because the technology is dazzling. Buy the token because the property behind it has real value.

Challenges and Risks: The Other Side of the Coin

Despite the optimism, the investor must be aware that we are still in the "Sandbox Environment." Here are the most prominent points to pay attention to:

• Price Volatility: Real estate tokens may be subject to speculation in the secondary market, which may temporarily decouple the token price from the real value of the property.
• Regulatory Framework: Final regulations will be issued in June 2026. Investing now is safe because companies are licensed experimentally, but updates to trading conditions may occur.
• Operational Management: Investment success depends on the efficiency of the "Property Manager" who maintains the building, collects rents, and distributes them to token holders.

Practical Steps: How to Start Investing in Real Estate Tokenization?

If you wish to undergo the experience with one of the nine companies (like "Sahl" or "HissaTech" or others), follow the steps below to ensure your rights:

1. Verify the License: Always ensure that the platform carries the "General Authority for Real Estate" logo and an active license number within the Sandbox Environment.
2. Read the Prospectus: Every tokenized property has a "prospectus" clarifying the building's condition, age, current lease contracts, and operational expenses.
3. Consult Experts: Before placing a large amount, contact your advisor at Skyline Holding. We can give you an unbiased opinion about the property's area and its investment future.
4. Diversification: Do not put all your capital in one property. The advantage of tokenization is fractionation, so use it to spread risks.

Are We Facing the "Bitcoin" of Real Estate?

The decision to allow 9 companies to tokenize real estate is not just a technical update, but a restructuring of the concept of ownership in Saudi Arabia. We are moving from a market relying on "major landlords" to a market where everyone participates. Opportunities are very promising, especially with the massive government support for the real estate tech sector.

But always remember: Technology is a means, and real estate is the asset. Success in this investment requires the mindset of an expert real estate investor, supported by digital age tools.

Are you ready to enter the world of digital real estate? The Skyline Holding team is ready to provide advice to you, whether you are an investor looking for the best opportunities, or a property owner wishing to explore the possibility of tokenizing your assets.