KINGDOM OF CHANGE: SAUDI’S TRANSFORMATIVE VISION

In 2016, Saudi Arabia unveiled Vision 2030, an ambitious economic and societal transformation plan aimed at diversifying the Kingdom’s economy beyond oil. It promised a future driven by innovation, entrepreneurship, and digital infrastructure. Nearly a decade later, one of the vision’s most potent enablers may be tokenization – a subject that was not widespreadly discussed when the plan launched. As the global financial system moves toward programmable assets and decentralized ownership models, tokenization stands out as a revolutionary force which Saudi Arabia is uniquely positioned to advance.

Vision 2030 rests on three main pillars: a vibrant society, a thriving economy, and an ambitious nation. At its heart lies a goal to make Saudi Arabia a global investment powerhouse and a center of technological innovation.

To deliver this, the Kingdom has launched a range of Vision Realization Programs (VRPs), including the Financial Sector Development Program, which promotes financial innovation, and the National Transformation Program, focused on government digitization and private sector growth.

The tokenization process, converting rights to an asset into a digital token on a blockchain, supports nearly every major theme of Vision 2030. Firstly, financial inclusion and democratized access to investment. Secondly, the attraction of global capital into local markets and thirdly, the development of a digital-first regulatory and entrepreneurial ecosystem.

FOUNDATION FOR SUCCESS Saudi Arabia is no longer watching from the sidelines – it’s building the infrastructure and policy willpower to be a pioneer.

The Saudi Central Bank (SAMA) has signaled its openness to distributed ledger technology (DLT). Its collaboration with the UAE Central Bank on Project Aber, a cross-border CBDC trial, was among the world’s first successful digital currency tests between two central banks.

At the same time, the Capital Market Authority (CMA) has been actively supporting fintech through regulatory sandboxes and licenses for blockchain-based securities platforms.

As well as being a driving force behind Vision 2030’s mega-projects like NEOM and The Line, Saudi Arabia’s Public Investment Fund (PIF) is also a major player in technology investment. The PIF has funneled billions into gaming (via Savvy Gaming Group) and artificial intelligence, and is now turning its eye toward blockchain and tokenized capital markets.

With over SAR 500 billion ($133 billion) in capital, the National Development Fund (NDF) is increasingly exploring alternative financing models, including tokenized infrastructure funding.

In 2024, droppGroup launched a $250 million Hashgraph DeepTech Venture Studio in Riyadh, in partnership with the Ministry of Investment and Hedera Hashgraph. The studio aims to build out tokenized and Web3-native businesses for real estate, carbon markets, smart cities, and fintech.

The Kingdom is also attracting international players like Animoca Brands, now partnered with Saudi Arabia’s SDAIA and KACST, to support Web3 gaming and NFT infrastructure.

POTENTIAL FOR TOKENIZATION

Real estate is often cited as the most natural candidate for tokenization, offering the possibility of fractional ownership. This would enable global investors and Saudi citizens to invest in high-value developments, such as Saudi Arabia’s $500 billion NEOM project, that would otherwise be inaccessible. A push towards tokenized real estate would support Vision 2030’s goals of financial inclusion and international capital attraction. Energy and Green Assets

Saudi Arabia is the world’s largest oil exporter, but its future includes a massive push toward renewables. Tokenizing energy assets – whether oil reserves or solar capacity – can provide transparent, tradeable units of energy. Furthermore, startups like TGE are working on tokenized carbon credit platforms that tie directly into Vision 2030’s environmental goals.

Tokenization can also fund infrastructure – from roads to data centers – by allowing global investors to buy digital shares in income-producing assets. In smart cities like The Line, tokenized microgrids and municipal bonds could redefine how public-private partnerships work.

The Kingdom has become an increasingly attractive destination for international investment as Vision 2030 comes to life. Larry Fink, CEO of BlackRock

Saudi Arabia now controls 45% of the MENA gaming market and is investing $38 billion through the PIF into the global gaming sector. Tokenized in-game assets, e-sports sponsorships, and cultural NFTs will soon be a part of this economy. The presence of Game software company Animoca in Riyadh underscores this shift, as does the country’s embrace of NFTs for digital art, cultural preservation, and fundraising.

THE ROAD AHEAD

In order for the Kingdom to fully utilise the potential of tokenization, a number of hurdles need to be navigated. Despite sandbox advances, regulatory caution exists and Saudi Arabia still bans cryptocurrency trading for individuals. Retail involvement in tokenized markets remains limited pending broader legal reform. The Kingdom also needs to accelerate talent development in Blockchain and Web3, despite promising initiatives like SDAIA’s 1 million-person AI training program. Further, public trust in crypto markets needs to be built through strong education campaigns, institutional-grade custody, and AML/KYC enforcement.

Tokenization isn’t just a tech upgrade. It’s a structural shift that aligns with Vision 2030’s mandate to build a diversified, inclusive, and high-growth economy. Faisal Al Monai, Co-Founder of droppRWA

To fully harness tokenization, Saudi Arabia should focus on clear imperatives. Firstly, enacting clear regulations for tokenized securities, property, and green assets. Secondly, expanding Project Aber into more use cases, especially in cross-border real estate and energy. Further, it must invest in digital infrastructure and developer training, through SDAIA, KACST, and Alat, and use sovereign wealth (from PIF, NDF) to anchor and scale tokenized ventures and platforms. Last but not least, it must establish standards and collaborate with other forward-leaning jurisdictions like Singapore and Hong Kong.

The potential for tokenization within Saudi Arabia’s Vision 2030 is unquestionable. With proper regulatory guidance and public-private synergy, tokenization can democratize access to high-value assets for citizens and invite foreign investors into previously closed markets. It can create new liquidity for mega-projects like NEOM and build a programmable, traceable economy aligned with ESG goals.

As Vision 2030 accelerates into its second decade, Saudi Arabia is not simply transforming its economy – it’s reimagining the infrastructure of ownership, access, and capital formation itself. Tokenization offers the tools to realize this vision, not only for Saudis but for a connected world watching closely.

With its smart cities and sovereign funds, the Kingdom has the intent and resources to be a global innovator. The question is no longer if tokenization will play a role in Vision 2030, it’s how big a role Saudi Arabia will play in shaping the tokenized world.