RAK Properties Partners with Hubpay for Cryptocurrency Transactions
RAK Properties, a leading player in the Ras Al Khaimah real estate market, is making headlines with its latest collaboration with fintech company Hubpay, which will allow international clients to purchase properties using cryptocurrencies. Through this partnership, buyers will have the option to pay with popular digital currencies including Bitcoin, Ethereum, and Tether. A report from Gulf Business reveals that these cryptocurrency transactions will be instantly converted into local currency, dirhams, via Hubpay’s platform, ensuring payments are swiftly transferred to RAK Properties’ accounts.
Strategic Initiative and Vision
This strategic initiative forms part of a broader vision to elevate Ras Al Khaimah as a premier destination for real estate investment globally. It underscores RAK Properties’ aim to engage a younger, tech-savvy demographic that is comfortable with digital currencies. Hubpay operates under the regulations of the Abu Dhabi Global Market (ADGM), ensuring that crypto transactions comply with necessary legal frameworks through their licensed partners at the Virtual Assets Regulatory Authority (VARA).
Statements from Leadership
Rahul Jogani, the Chief Financial Officer of RAK Properties, stated that this move demonstrates the firm’s dedication to innovation, marking a significant evolution in their 20-year history.
“By enabling the use of digital assets, we are engaging a new ecosystem of investment-savvy, digital-first clients,”
he noted, signaling an intention to broaden access for international buyers.
Alignment with Ras Al Khaimah’s Vision 2030
This development aligns seamlessly with Ras Al Khaimah’s Vision 2030, an agenda designed to enhance economic diversification, promote infrastructure advancements, and attract increased foreign investment. Accepting cryptocurrencies for real estate transactions is seen as a pivotal step towards integrating affluent digital asset holders into the emirate’s burgeoning property sector.
Industry Impact and Future Prospects
Kevin Kilty, CEO of Hubpay, hailed the partnership as a
“turning point”
for the adoption of crypto in the real estate industry within the region, promising that all transactions would uphold high standards of regulatory scrutiny and security.
The timing of this collaboration is notable, particularly as work progresses on Mina Al Arab, a significant waterfront development in Ras Al Khaimah, which is set to deliver over 800 residential units by the end of the year. The introduction of crypto payment options is anticipated to expand its appeal to a broader investor demographic.
UAE’s Position in the Cryptocurrency Market
Simultaneously, the UAE is reinforcing its position as a hub for blockchain and cryptocurrency innovation, with clear regulations drawing major players in the industry. Notably, there are reports of a state-backed firm in Abu Dhabi planning a $2 billion investment into the crypto exchange Binance, using USD1, a stablecoin associated with the Trump family’s ventures.
As the European Union implements strict regulations for the cryptocurrency market, many firms are exploring opportunities in the UAE, which is considered a favorable environment for crypto operations. The EU’s new Markets in Crypto-Assets (MiCA) regulation imposes considerable challenges, prompting some firms to consider relocating to jurisdictions with looser restrictions.
