This article is from the Australian Property Journal archive
Dubai is following the footsteps of Australia, United States and Japan in allowing investors to invest in real estate investment trusts.
Yesterday, the Dubai Financial Services Authority announced rules to permit the operation of REITs within the Dubai International Finance Centre with effect from August 06, 2006.
The Rules follow the approval on August 01, 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.
“In many of the world’s major capital markets REITs have become the most favoured method for attracting public ownership in property investments,” DFSA chief executive David Knott said.
“They provide a convenient form for listed and tradable property ownership with transparent pricing and liquidity.
“The REITS industry attracts widespread investor support in countries including United States of America, Australia, Canada and Hong Kong,” he added.
“Under these Rules it will be possible to issue REITS for the first time in this region, utilizing the facilities of the DIFX. It will add a significant new dimension to the UAE’s property market,” Knott said.
Dubai is the second largest and wealthiest emirate in the United Arab Emirates.
Meanwhile, the region’s construction industry continues to boom thanks to the tourism industry and the sector shows no signs of abating.
According to the Dubai Department of Civil Aviation, Dubai will overtake Heathrow Airport in passenger traffic by 2011 at the current growth rate. In 2005, the airport recorded 14.4% growth in passenger traffic to 24.7 million passengers.
Dubai International Airport would be capable of handling 70 million passengers when the current $4.1 billion expansion involving the construction of Concourse 2 and 3, along with the new underground Terminal 3 is complete.
The tourism boom has also led to increases in retail, housing and office developments. The city-state now has about 300 hotels, 30 shopping malls.
By Adam Parsons
