A real estate investment trust (REIT) is a company that finances, operates, or possesses real estate properties that generate income across a range of sectors. What makes REIT agencies stand out is that they give any institutional investor the chance to invest in an exhaustive liquid property portfolio that is professionally managed. In order for a certain agency to become a REIT, it has to meet certain criteria. Most REITs trade on major stock exchanges, and investors get a number of advantages from them by diversifying their stock portfolio and receiving dividend-based passive income.
Since the UAE is renowned for having an outstanding property sector that is growing more and more day by day, investors there can take benefit from these REITs. They can obtain income from properties without buying the property itself. If you are an investor who would like to know more about this matter, read about the top REIT agencies in the UAE.
We will start our article with the largest listed Sharia-compliant Real Estate Investment Trust (REIT), namely Emirates REIT. This trust was established to be the first DFSA licensed Real Estate Investment Trust with the aim of creating a strong and stable dividend distribution to its shareholders through long-term rental growth and capital appreciation. Dubai Islamic Bank, Tecom, and Dubai Properties are the seed investors of this trust, which possesses approximately USD 758 million of assets under management in its portfolio as of March 31, 2022.
With Emirates REIT, there is no minimum or a maximum number of shares. However, Investors should know about the legal obligations that could apply once they hold over 5% of the Emirates REIT share capital.
Two years after its launch in the UAE, this REIT Company won two Forbes awards consecutively as the Arab World’s number one Investment Advisory and Brokerage Company. It managed to sell more properties that are all worth more than AED 2 billion.
After this brilliant success, Tamleek, which was established in 2015, began to further specialise and turned into a Global Investment Company whose name became Tamleek REIT & Global Investments in 2018. As a global investor, this company is selective about the assets and projects in which it invests as it aspires to always cement its image as a company, which only deals with the best investors.
With the main goal of generating a regular dividend income for investors, ENBD was established in Dubai. It gives often drives that income from income generated from investing in property, mostly in the form of rent adding to that the opportunity for capital appreciation, and increases in the values of equity. This REIT agency is a subsidiary owned completely by Emirates NBD Bank PJSC.
The Fund Manager of ENDB REIT, Emirates NBD Asset Management, is considered one of the leading asset managers in the region. It possesses approximately US$ 6.1 billion in assets as of 31st December 2021.
If you are looking to invest in ENDB REIT, you should know that the minimum number of shares you could hold in ENBD REIT is one share and there is no maximum number. However, once you become a holder of over 5% of ENBD REIT’s share capital, you will have to know that certain obligations will be applicable.
The Residential REIT
The Residential is another REIT that is Sharia-compliant. This agency distributes at least 80% of its net income to shareholders twice a year. This agency was founded after the grant of an exclusive Emirati decree in October 2016. This decree allows current and future REIT agencies and other collective funds that are managed by Equitativa Group to invest in Ras Al Khaimah onshore real estate.