Trophy Homes, Tokenised Assets and Crypto: Inside Dubai’s Wealth Shift

Dubai has long symbolized luxury, from high-rise penthouses to superyachts. Yet, beneath the glittering surface lies a profound transformation of wealth management. Over the past decade, capital flows have reshaped the emirate, steering high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) toward both traditional and innovative assets. Beyond villas and yachts, Dubai’s wealthy are increasingly exploring tokenised assets, cryptocurrencies, and curated alternative investments.

The Surge of Wealth in Dubai

In 2025, Dubai is expected to welcome approximately 7,100 new millionaires, adding around $7 billion in fresh capital. While real estate remains a primary investment avenue, the strategy for many HNWIs now goes beyond preservation. They are seeking growth opportunities across multiple asset classes.

Dr Bhaskar Dasgupta, Chair of the Board of Directors at APEX Group, notes, “Everyone you meet in Dubai has a story about a villa they bought, sold, or wished they had. Real estate remains iconic, but wealth strategies are becoming increasingly sophisticated.”

According to the Dubai Land Department (DLD), real estate transactions hit a record AED 761 billion (USD 207 billion) in 2024, surpassing 2023’s strong performance. High-profile investors continue to view property as a stable base for their portfolios. Yet, alongside traditional investments, the wealthy are seeking more liquid, globally connected options.

Tokenisation: Redefining Ownership

Tokenisation is rapidly changing the way assets are owned and traded in Dubai. The Dubai Land Department and Virtual Assets Regulatory Authority (VARA) have piloted tokenised property sales, allowing fractional ownership of real estate. This means investors can buy portions of luxury properties without the traditional constraints of full ownership.

Nicholas Furlong, Senior Manager at FINEXITY, explains, “Tokenisation makes real estate investment accessible and efficient. Investors can diversify globally while remaining compliant with local regulations.”

Several developers, including Mantra, DAMAC, PRYPCO, and FINEXITY, are actively promoting tokenised projects. For HNWIs, these offerings complement traditional real estate rather than replacing it. Fractional ownership, liquidity, and global reach make tokenised assets an attractive supplement to trophy villas and penthouses.

Cryptocurrency: Beyond Speculation

Dubai is also emerging as a hub for regulated cryptocurrency adoption. While digital currencies are not legal tender, they have been formally regulated since 2017. This regulatory clarity has attracted retail and institutional investors alike.

Romain Berry, Chief Risk Officer at Flowdesk, remarks, “More than half the UAE trades in crypto. Though adoption is evolving, frameworks are in place to integrate digital assets into the financial system safely.”

For Indian HNWIs, Dubai provides a unique bridge to the crypto world. With no income or capital gains tax on crypto and a growing fintech ecosystem, Indian investors can explore both speculative and strategic crypto opportunities. Major platforms like Binance, Crypto.com, and Gemini have increased their UAE presence, catering to demand from family offices and wealthy individuals.

Diversification into Alternative Assets

Dubai’s wealthy are also turning to alternative investments beyond real estate and crypto. Art, vintage cars, and collectible timepieces are no longer vanity purchases but strategic assets within diversified portfolios.

• Art funds and auctions: Galleries in DIFC, often run by former private bankers, are treating art as an asset class rather than decoration.

• Luxury collectibles: Indian HNWIs frequently top bidding lists for rare watches and cars, reflecting both cultural affinity and investment intent.

These assets provide portfolio diversification while hedging against market volatility, complementing both traditional and digital holdings.

Indian Wealth Migration

Indian family offices are increasingly using Dubai as a “second balance sheet.” Knight Frank’s Wealth Report 2025 predicts India’s HNWI population will grow from 85,698 in 2024 to 93,753 by 2028, with Dubai absorbing a significant portion of that capital.

Family offices are blending traditional assets like real estate and equities with alternatives such as art, collectibles, and tokenised investments. Structured investment vehicles in Dubai enable compliance with international regulations, allowing Indian HNWIs to diversify globally while maintaining regulatory safety.

The Role of DIFC and Private Banks

Dubai International Financial Centre (DIFC) remains a central hub for wealth management. In 2025, the DIFC cluster hosts 440 asset and wealth management firms, up 19% year-on-year. Private banks such as UBS, Julius Baer, and Emirates NBD are beginning to offer hybrid portfolios that combine conventional assets with tokenised investments and curated alternative assets.

These developments highlight Dubai’s ambition: to provide a single, compliant hub where traditional and digital wealth converge, catering to both domestic and international investors.

Crypto Adoption Trends

Crypto adoption in Dubai is largely concentrated among HNWIs, who leverage digital assets for both speculation and strategic growth.

• Regulated platforms: Trading occurs via brokers regulated by VARA.

• Stablecoins and tokenised assets: Increasingly, investors use stablecoins to manage risk and participate in tokenised real estate projects.

• Institutional participation: Following anticipated Basel regulation updates in 2026, private banks and wealth managers are expected to expand crypto exposure within structured portfolios.

This measured adoption reduces risk while positioning Dubai at the forefront of digital asset innovation.

Global Comparisons

Compared to other global wealth hubs like Singapore, London, and Hong Kong, Dubai offers a unique combination of regulatory clarity, tax efficiency, and access to tokenised and crypto assets. Its openness attracts both family offices and institutional investors, creating a concentrated ecosystem for integrated wealth management.

Looking Ahead

Dubai’s wealth landscape is evolving rapidly. Investors, particularly Indian HNWIs, are strategically diversifying across:

• Trophy real estate and penthouses

• Tokenised property investments

• Cryptocurrencies

• Art, luxury collectibles, and alternative assets

This multi-asset approach reflects a shift from traditional wealth preservation toward sophisticated portfolio management. Dubai’s regulatory framework, combined with its financial infrastructure, is making this shift both feasible and attractive.

By 2026, hybrid portfolios blending digital and traditional assets are expected to become standard for HNWIs, solidifying Dubai’s role as a global wealth management hub.

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