Posted by Neil King
Dubai's first Real Estate Investment Trust (REIT) has launched as a joint venture between Dubai Islamic Bank (DIB) and Eiffel Management, a pioneer of REITs in France.
Named Emirates REIT and based in the Dubai International Financial Centre, the trust will invest exclusively in high-quality, income-producing commercial and residential properties, the companies said in a statement.
It was also pointed out that a key feature of Sharia-compliant Emirates REIT is that at least 80 per cent of the company's net income must be returned to shareholders annually in the form of dividends.
The trust will be regulated by the Dubai Financial Services Authority and governed by a board of directors comprising Abdulla Al Hamli, Dr Adnan Chilwan and Mohammed Al Sharif of DIB as well as Sylvain Vieujot from Eiffel Management and Mark Inch from Societe de la Tour Eiffel.
"DIB is proud to support Emirates REIT, which will have a positive impact not only for the real estate sector but also the UAE's overall economic environment," said Mr Al Hamli.
Emirates REIT will seek to attract investors through a number of channels while owners of real estate may also invest by contributing their assets in exchange for shares in the REIT, or by making cash contributions that will be used to acquire further assets.