Executive Summary
Global REITs have underperformed global equities over the past five years, largely due to the uncertainty of the current interest rate cycles of central banks across the world. This trend is also mirrored in the GCC markets, where the five-year annualized return of the S&P GCC Composite Shariah Index stood at +9.66%, while the average annualized return of GCC listed REITs was -1.55% during the same period.
The GCC REIT market was nascent before 2016. However, improved financial market efficiency and clearer regulatory frameworks have resulted in a gradual increase in REIT listings over the past decade. Saudi Arabia is the front runner in the region, accounting for 19 of the 26 REITs in GCC, powered by key regulatory updates and Vision 2030 initiatives. UAE is next in line, notably hosting the region's largest REIT, Dubai Residential REIT, which was listed in May 2025 and has a market cap of USD 4.4 billion.
With anticipated 30% increase in urban populations by 2030, coupled with rising numbers of expats and tourists, real estate sector, and consequently the REIT market, is set for significant growth in GCC region.
