REITs in GCC

Executive Summary

What is this report about?
REITs are not popular in the GCC as in advanced countries despite the fact that the region is home to wealthy individuals and large institutional investors. Lack of regulatory framework for listing and operation of REITs remains a major hindrance for its development in the region. However, capital markets authority in the region have started revamping regulations to pave way for the development of alternative investments. The future looks promising for REITs in GCC, especially with the new class of investors looking for investment products to diversify their portfolios in the local markets. Islamic REITs can be a preferable option for traditional investors who wish to invest in Sharia compliant products in different asset classes such as real estate.

Who will benefit and why?
The report will benefit investors, regulators, real estate companies and academicians in the finance domain. This report would help these entities to gain in-depth understanding about the landscape of REITs in GCC.

How exhaustive is this report?
The objective of this report is to highlight the benefits that REITs offer to investors and the economy on a risk-return perspective and specifically to the real estate sector. The report covers in detail, nuances of REITs in various parts of the world as well as in the GCC, the recent listing of REITs in the region alongside presenting a regulatory perspective from an individual country standpoint in the GCC. The regulatory hassles that impeded the growth of REITs in the GCC have been spotlighted and measures that could be adopted for propelling its listing have been discussed.