Kearney reveals tokenization is a $500 billion opportunity in Gulf Countries

Kearney, a global management consulting firm in its recent report noted that the potential and projected growth for tokenization uptake in the GCC countries ( Gulf Cooperation Countries) is close to $500 billion worth of assets. It notes that the most fertile grounds are private markets, funds, and bank deposits, and those who will be primary catalysts are financial institutions, asset managers and sovereign wealth funds.

As per the report, private markets represent the largest tokenization opportunity for the GCC because of clear demand among investors for transparent ways to participate. It is also projected to grow from $4.5 trillion in 2024 to $6 trillion in 2030. Tokenization can expand access to private companies and create a more open, cost effective way for investors to build and manage private market portfolios. This is especially important in Dubai and Riyadh were there is a strong pipeline of high growth start-ups and unicorns.

On-chain RWAs (excluding stablecoins) have grown from approximately $1.1 billion in early 2023 to nearly $20 billion by January 2026.

Additionally Kearney sees tokenization will be quite strong in GCC stock markets, such as KSA’s Tadawul and Dubai Financial Market. By tokenizing listed securities this could simplify cross-border access and reduce intermediary layers while opening up fractional ownership for easier participation. Aramco with a market cap of $1.5 trillion could utilize this by allowing investors to take part in smaller ticket sizes.

Kearney also discusses how bank deposits can adopt tokenization enabling them to offer real-time institutional settlement, optimized treasury operations, and more. The report notes that already banks in KSA, Qatar, and UAE are exploring tokenized bank deposits as an alternative for stablecoins.

As for Funds, Kearney notes that progress has been stalled in the GCC due to regulatory approvals or lack of. If massive sovereign wealth funds such as Saudi Arabia’s Public Investment Fund, which has $913 billion in AUM, do tokenize, it will create a more efficient structure for their fund, enhanced liquidity options, streamline operations and greater visibility.

When it comes to real estate, Kearney views this as a compelling asset class for governments and mass public. There are two advantages, the fractional ownership, the enhance liquidity with potential for secondary trading. Kearney mentions the Prypco, Ctrl Alt tokenization project in Dubai UAE under VARA regulated ecosystem.

Robert Farquhar, Chief Executive Officer, MENA at Ctrl Alt. stated, “Across the GCC, and particularly in the UAE, we are seeing a level of regulatory openness and institutional engagement that is accelerating real adoption of digital assets. Clear frameworks, proactive regulators, and a willingness to collaborate with industry are enabling tokenization to be deployed in live, regulated market environments at scale. This approach is attracting global innovators and positioning the region as a hub for the next generation of capital market infrastructure.”

It also mentions the Saudi Arabian launch of the national real estate tokenization infrastructure project which has been enabled by SettleMint as the tokenization platform and implementor.

The analysis, touches on commodity tokenization, mentioning gold in specific as well as gem tokenization mentioning diamonds and then oil and gas. Interestingly for oil and gas they see investors accessing the market beyond traditional equities and ETFs such as tokenized futures, and direct commodity exposure.

In Conclusion, all these asset classes which can be tokenized represent close to $500 billion opportunity by 2030. The report explains, ” This suggests a fundamental shift in market dynamics, and explains why governments, financial institutions, and asset managers are beefing up their digital asset strategies.”

Is GCC ready for tokenization?

According to the report, the most important question is how ready the GCC is to support tokenization discussing the three major challenges as well.

Firstly in terms of regulatory landscape, while there are moves to build regulatory frameworks that support tokenization and digital financial and trading systems, the countries that are leading in this respect are the UAE and Bahrain with Kuwait currently not doing anything in this area.

“Tokenization will scale where market infrastructure and regulation evolve in step,” said Jeroen Gillekens, Principal at Kearney Middle East & Africa – Digital & Analytics Practice. “Issuance, custody, settlement, and secondary trading must function as an integrated system, with digital asset capabilities embedded into core operating models. That alignment is what enables durable, institutional-grade markets.”

Another challenge facing the GCC is how to utilize and integrate the technology, blockchain DLT and digital assets. Kearney research notes that for tokenization to be viable at an institutional level, enterprise-grade infrastructure will need to align with existing operational and regulatory processes.. This includes support for issuance structures, custody, settlement, payments, regulatory integration, on- and off-ramps, cap table management, and valuation processes, alongside analytics and reporting tools that provide visibility and auditability, both vital to maintain stakeholder trust.

Adam Popat, CEO of SettleMint commenting on the report states, “When it comes to tokenization and the adoption of blockchain technology in production and at real scale, you need technologies which are robust, proven and able to easily integrate with institutions’ existing core operating systems. Anything else, will be a non-starter.”

Also important is market infrastructure. Without reliable mechanisms for issuance, trading, settlement, and asset servicing, tokenized assets struggle to move beyond isolated pilots. Settlement capabilities, custody solutions, secondary markets, digital registries, payment connectivity, and data and identity standards are not yet consistently aligned between markets or institutions. This fragmentation creates friction, limiting liquidity and restricting cross-border distribution.

Who will lead tokenization in the GCC?

According to the report, financial institutions, asset managers, and sovereign investors are likely to be the primary catalysts for tokenization projects within the GCC. They will shape both supply and demand for tokenized instruments.

Andrew Forson, President of DeFi Technologies, which recently opened its offices in UAE, commenting on this statement, says, ”Absolutely Financial institutions will be the catalyst because they stand at the intersection of availability capital and the need for capital and their lifeblood is to execute transactions amongst providers of capital and consumers of capital.”

He adds, ” Tokenized assets represents the advancement of technology that enables anybody anywhere to participate in capital markets any time. This means an automatic increase of TAM (Total addressable market) for the innovative financial institution.”