Dubai Financial Market (DFM) on Monday (January 18) hosted a bell ringing ceremony to celebrate the commencement of Real Estate Investment Trusts (REITs) trading with the listing of Al Mal Capital’s REIT.
The introduction of REITs is a key milestone in DFM’s journey to diversify product offering and asset classes, broadening the scope of opportunities offered to its vast investor base of local and international investors.
Khalid bin Kalban, the Vice Chairman and CEO of Dubai Investments and Chairman of Al Mal Capital, rang the market opening bell in the presence of senior DFM officials including Chairman Essa Kazim and CEO Hassan Al Serkal in addition to Al Mal Capital Vice Chairman and CEO Naser Al Nabulsi and Nasdaq Dubai CEO and DFM Deputy CEO Hamed Ali.
The listing culminates the successful floating of the new fund by Al Mal Capital, a subsidiary of Dubai Investments, in November last year.
Al Mal Capital will use the fund's proceeds totalling AED350 million ($93.2 million ) for investment in a sharia-compliant diversified portfolio of income generating properties that serve different sectors such as; healthcare, education and industrial assets, with a target annual return of 7 percent.
Kazim said the commencement of REITs trading through the listing of Al Mal Capital REIT reinforces DFM’s product offering diversification strategy, providing investors with new opportunities.
"Today’s listing is a key foundation for this new asset class and we are looking forward to see it gaining momentum during the coming period in line with REIT’s strong presence globally and to truly reflect the magnitude, quality and expansion of the real estate sector in Dubai by encouraging the establishment and listing of more REITs in the future," he added.
On his part, Kalban said: "We are excited to bring to the market and celebrate the successful listing of the first REIT IPO on DFM. The listing on DFM is pivotal to Al Mal Capital REIT, as the exchange is strategically located in the heart of the GCC."
"This provides us with the opportunity to better serve investors across local and regional markets, while allowing them to capitalise on the various investment prospects available in the UAE’s diverse sectors," he added.
The comprehensive framework for listing and trading of REITs on DFM is the outcome of a wide-ranging cooperation between DFM, the Securities and Commodities Authority (SCA) and Dubai Land Department (DLD).
These regulations streamline property companies’ accessibility to the market by founding and listing REITS.
Statistics show that REIT markets around the globe have been registering strong growth in recent years with their cumulative market capitalisation approaching $2 trillion.-TradeArabia News Service