DFSA introduces Real Estate Investment Trusts
The Dubai Financial Services Authority (DFSA) announced today, that rules to permit the operation of Real Estate Investment Trusts (REITS) within the DIFC have been introduced with effect from 6th August 2006.
The rules follow the approval on 1st August 2006, of the Investment Trust Law, DIFC Law No. 5 of 2006, by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai.
Commenting on the new rules, DFSA Chief Executive, David Knott said: “In many of the world’s major capital markets, REITS have become the most favoured method for attracting public ownership in property investments. They provide a convenient form for listed and tradable property ownership with transparent pricing and liquidity.”
Knott added: “The REITS industry attracts widespread investor support in countries including United States of America, Australia, Canada and Hong Kong. Under these rules, it will be possible to issue REITS for the first time in this region, utilising the facilities of the DIFX. It will add a significant new dimension to the UAE’s property market.”