Dubai Land Department to soon issue new rules for REITs

The authority also plans to introduce fees for investors when they enter and exit REITs



Dubai Land Department will soon introduce new regulations governing real estate investment trusts (REITs) and time shares.

Speaking on stage at a conference in Dubai, the CEO of the Real Estate Regulatory Authority (RERA) Marwan Bin Ghalita said both listed and unlisted REITs would soon need to register with the Dubai Land Department.

The authority also plans to introduce fees for investors when they enter and exit REITs after signing agreements with Nasdaq Dubai and Dubai International Financial Centre.

The new regulation comes amid expectations of a significant increase in the number of REITs in the country.

The first listed vehicle, Emirates REIT arrived on the Nasdaq Dubai in 2014 and was followed in March this year by a REIT from bank Emirates NBD.

Abu Dhabi Financial Group also announced plans to list a $816.7m Shariah-compliant REIT this year and FIVE Holdings, formerly SKAI, is planning a $570m REIT for its hospitality assets.

Read: GCC real estate eyes return to form

The UAE market alone could support anywhere between seven and 10 REITs, Glyn Gibbs, regional head of business development for the Middle East and North Africa at ENBD REIT administrator Apex Fund Services, told Gulf Business in a recent interview.

Other new regulations will govern timeshare properties in Dubai and introduce greater oversight for owners associations in the emirate, with different regulatory guidelines for developers, medium sized and smaller property associations.

Comments

comments