The UAE authorities are at pains to attract investors from all over the world through a variety of means, decisions, and plans, such as the Dubai Financial Market’s (DFM) scheme to list real estate investment trusts (REITs).
Earlier in July, the DFM signed a memorandum of understanding (MoU) with the Dubai Land Department (DLD) for the facilitation of the listing of REITs and real estate companies in general.
The offering of REITs will boost the market, as this type of business is different from listed companies and eager for investments in highly profitable real estate assets, Wadah Al-Taha, member of the National Advisory Board of Chartered Institute for Securities &Investments (CISI), commented.
The UAE markets are expected to see more REITs listings in 2018 and 2019, Al-Taha added.
Investing in REITs is less risky than the direct investment in real estate market, senior financial analyst at Mena Corp Issam Kassabieh said.
We may see the first listing ever of REITs on the DFM this year, chief market analyst at Century Financial Brokers Vijay Valecha noted.
Huge trusts, especially insurance and pension funds, could be the first investors in REITs following their listing, the analyst told Mubasher.