RAK Properties is bringing the UAE real estate market into a new era of crypto payments! In the future, foreign buyers will be able to purchase properties from RAK Properties using crypto assets. This real estate company, headquartered in Ras Al Khaimah, has partnered with UAE fintech company Hubpay to accept digital money such as Bitcoin, Ether, and Tether's USDT. Hubpay is responsible for converting the crypto assets into UAE Dirhams and depositing the funds directly into RAK's account.

This cooperation marks RAK Properties' efforts to attract global buyers into the real estate market of Ras Al Khaimah. RAK Properties' Chief Financial Officer Rahul Jogani stated that this partnership further advances the company's innovation and accessibility strategies, making investments in Mina and Ras Al Khaimah easier and more attractive.

Since its listing on the Abu Dhabi Securities Exchange in 2005, RAK Properties has reached a market capitalization of approximately 4.7 billion dirhams (around 1.3 billion USD). To date, the company has planned 12 new projects, with a launch scheduled for mid-2025. The company's net profit has risen to 281 million dirhams (76 million USD), a 39% increase compared to 2023, thus adding more payment methods is aimed at attracting a larger international customer base.

Jogani stated that the shift to Crypto Assets payments is aimed at attracting investment-savvy digital consumers and positioning RAK Properties as a technologically advanced and trustworthy developer. Hubpay's CEO Kevin Kilty shares the same view, emphasizing that Hubpay's regulatory environment can protect large real estate transactions from compliance or security risks.

Hubpay is regulated by the Abu Dhabi Global Market (ADGM) and often collaborates with licensed entities from the Virtual Assets Regulatory Authority (VARA) to ensure the secure conduct of crypto transactions.

UAE companies are continuously venturing into the encryption field. For example, Abu Dhabi's National Investment Fund MGX plans to invest $2 billion into mainstream market platforms through USD1—a stablecoin operated by World Liberty Financial (a Trump-supported project).

Chase Ergen, a board member of DeFi Technologies, even predicts that within five years, crypto assets may become the second largest industry in the country.

Overall, crypto activities are increasing across various trading scales in the UAE, with small and medium-sized retail transactions expected to grow by over 75% year-on-year by 2024. Analysts predict that as restrictions tighten in Europe, more and more crypto businesses are choosing to turn to the UAE, as the recent MiCA regulations have caused significant pressure in Europe.

The MiCA framework requires issuers and CASPs to implement measures such as transparency disclosures, anti-money laundering checks, and authorizations. Small stablecoin issuers are required to keep 30% of their reserves in low-risk European banks, while larger companies, such as Tether, must place over 60% of their reserves. As a result, some companies are considering repositioning.