Qatar has opened a public consultation on a draft law and accompanying executive regulations intended to regulate the tokenisation and trading of real estate assets. The proposed legislation, made available on the government’s Sharek consultation platform, invites comments from stakeholders over a 10-day period.

The draft law aims to establish a comprehensive legal framework for converting ownership interests in real estate into tradable digital tokens, a process known as tokenisation. This approach is designed to facilitate fractional investment in property, thereby reducing entry costs for investors and allowing more flexible transfers of ownership, all within a regulated environment.

Development of the draft involved collaboration among multiple government entities, including the Council of Ministers’ Secretariat, the Ministry of Justice, the Qatar Central Bank, and the Qatar Financial Markets Authority. These bodies have worked jointly to ensure the proposed regulations promote transparency, protect investors, and uphold legal clarity in property transactions conducted via tokenisation.

The law requires licensing for all parties engaged in activities related to real estate tokens, such as tokenisation itself, trading, custody services, and promotional efforts. Importantly, the token system preserves a legally binding connection between the digital tokens and the underlying real estate through an electronic token register. This register will be synchronized with the official property registry, which remains the definitive source for legal property details.

Regarding foreign ownership, existing restrictions are maintained. Tokens can only represent properties located in areas where foreign ownership is permitted. Additionally, eligibility criteria for tokenisation include clear legal title, absence of encumbrances without creditor consent, compliance with demarcation and zoning requirements, and full insurance coverage.

Certain categories of properties are explicitly excluded from the tokenisation framework. These include state-owned land, subsidised housing reserved for Qatari citizens, waqf (endowment) properties, and assets subject to expropriation or urban redevelopment plans.

The public consultation marks a significant step in Qatar’s efforts to integrate emerging financial technologies into its real estate sector while ensuring proper regulatory oversight and legal safeguards. The government’s coordinated approach aims to balance innovation with the protection of property rights and market integrity.