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Real Estate Investment Trust in Dubai

Real Estate Investment Trust in Dubai

Interested in a real estate investment trust in Dubai? This type of investment is subject to certain rules and requires specialized assistance. If you are a foreign investor and want to find out how to establish a REIT in Dubai, we invite you to talk to our company formation agents in Dubai. Our specialists can also help you with company formation in Dubai, depending on your plans. In the following lines, you can find out what a real estate investment trust means in Dubai and what are the conditions and rules for this type of fund.

What is REIT in Dubai?

REIT in Dubai is a type of fund with long-term investments in real estate, with the help of ownership, leasing and even purchasing mortgages. With the help of a REIT in Dubai, investors enjoy share price appreciation, reliable dividends, and better diversification to proficiently access rental revenue streams from real estate properties.

The REIT mechanism

The real estate investment trust in Dubai involves a rather interesting mechanism for local and foreign investors. REIT in the UAE allows investors to protect shares in real estate portfolios, packed with commercial real estate. The focus is on specific real estate sectors and many entrepreneurs decide on REIT in Dubai strictly from this point of view.

Also related to the REIT mechanism in Dubai, they can trade on main securities exchanges, letting access to liquid tools for investors to buy and sell. Information about REIT in Dubai, but also about how to set up a company in Dubai, you can find out from our local agents, with experience in the field.

Types of REITS in the UAE

There are three categories of REITS in the UAE, as follows:

  • Equity REITs – They are the most used and appreciated due to the possibility of easily managing revenues generated from real estate properties. Equity REITs offer investors a profit share without the hassle of real estate property management. Diversification is also appreciated because you can invest in retail/commercial/residential/industrial properties.
  • Mortgage REITs – The focus of this type of investment trust is on providing loans. With these, specialized assistance can be offered for entities and natural persons complicated in estate and generating income from the difference between interest rates on loans and the expenses acquired for funding the loans. Profitability can be affected by interest rates and market fluctuations.
  • Hybrid REITs – They are combinations between equity and mortgage REITs in the UAE, they are versatile and allow property ownership while holding mortgages. With this type of trust, the portfolio can be diversified and attempts are made to capitalize the interest rate and rental income.

If you want to open a company in Dubai and you need specialized help in matters of investments, you can contact one of our consultants with confidence.

What are the benefits of REIT in Dubai?

REIT in Dubai comes with a series of advantages for local and foreign investors. For example, these are optimal alternatives for portfolio diversity and tangible assets investment. On the other hand, REIT in Dubai is appreciated for long-term and stable returns. One can easily sell and buy real estate properties for tactical asset allocation purposes, among others. Here are some interesting figures about the economy of the UAE if you want to set up a company in Dubai:

  • Around 3.7% was the GDP growth recorded in the UAE in 2023.
  • In the first 6 months of 2023, non-oil economy growth of approximately 5.9% was recorded.

In addition to setting up a REIT, those interested can ask for information on how to start a business in Dubai. We are also at the disposal of those interested in assistance for immigration to Dubai. We invite you to contact us for specialist advice for company incorporation in Dubai.