New law to introduce REITs to Dubai
Legislative moves to introduce a Real Estate Investment Trusts (REIT) under the jurisdiction of the Dubai International Financial Centre (DIFC) are reportedly underway by the Dubai Financial Services Authority (DFSA), the independent regulator of the DIFC.
"The proposed Investment Trust Law introduces a new investment vehicle for use by Funds to facilitate the establishment and operation of Real Estate Investment Trust (REITs) products," said DFSA's CEO, David Knott, according to Khaleej Times.
REITs are companies that invest its assets in real estate holdings.
"This is in line with DFSA's policy to adopt international standards and best practice wherever possible,” Knott added.
On its website, DFSA issued two Consultation Papers, Number 33 and Number 34, which seek public comment on a number of enhancements to the Collective Investment Funds regime, introduced by the DFSA in April 2006.
Media reports in January reported DIFC's plans to allow the registration and eventual listing REITs on Dubai International Financial Exchange (DIFX).
The new REITS, market experts believe, will help Dubai’s booming real estate sector be more liquid and allow greater accessibility to international investors wishing to invest in the lucrative market.
“The REITs specific proposals are designed to ensure that liquidity and other risks inherent in real estate investments are adequately addressed in a manner consistent with the international standards adopted for REITs,” said a DFSA statement