Oman government has finalised a draft regulation for listing real estate investment trust (REIT) funds and is now awaiting final approval from certain ministries, such as the Ministry of Housing, said a report.
The whole issue will be resolved shortly and the regulation will be announced this year, reported the Times of Oman, citing a top official at the Capital Market Authority (CMA).
REITs are securities that sell like a stock on the bourse and invest in real estate directly, either through properties or mortgages. It provides investors an opportunity to participate in real-estate projects even with a small fund size and offers regular income and capital appreciation.
“From our side, the draft is ready. We need to talk to certain government entities like the Ministry of Housing because there are certain legal issues that prevent companies and funds from owing properties. We need to resolve this issue with the Ministry of Housing,” stated Sheikh Abdullah bin Salim Al Salmi, executive president of CMA.
The new regulation, which was approved by Tanfeedh, will be for both conventional and Sharia compliant REITs. “This will be another venue for Sharia-compliant issue,” he added.
Some of the key Gulf states have already launched the REITs owing to the demand from real estate developers and investors. The UAE introduced it sometime back followed by Saudi Arabia and Bahrain.