Dubai REITs as an Alternative Property Investment Option
According to the managing director of Al Mal Capital REIT, REITs provide investors liquidity of publicly listed stocks in addition to reduced entrance expenses. They also let purchasers benefit from expert management, he said.
Still, any chance of recovery for REITS in Dubai would take place against a world market in despair. A private equity behemoth had to face real estate problems that affected its second-quarter results. The company had to deal with increasing redemptions in the middle of the year.
Locally there have also been difficulties. The Dubai Financial Services Authority investigated Emirates REIT four years ago for its corporate working, and after some period the government body penalised the management. The car market as well as ENBD REIT have both shown losses in recent years because they failed to match the rise in Dubai property prices.
But this time there are important differences. Long-term visas for property investors and loosened regulations on foreign ownership among United Arab Emirates' changes have produced a more welcoming field for international capital, therefore allowing REITs to profit from a larger hub of investors.
A number of new REITs would support the government's efforts to grow domestic capital markets, a major objective for the emirate whose stock market has been among the very active in the world and has lately hosted a boat of listings.
Supported by good sponsors who will introduce good working procedures, The regional co-head of investment banking HSBC Holdings Plc, sees a chance for REITs to flourish in the United Arab Emirates.








