Dubai Islamic Bank and Eiffel Management launch Emirates REIT

Company will be governed by the Dubai Financial Services Authority

Dubai Islamic Bank (DIB) and France-based Eiffel Management have launched a new Sharia-compliant Emirates Real Estate Investment Trust (REIT).

Based in the Dubai International Financial Centre, Emirates REIT will be governed by the Dubai Financial Services Authority and will invest exclusively in high-quality, income-producing commercial and residential properties, said DIB.

The company will be governed through a board of directors comprising Abdulla Al Hamli, Adnan Chilwan and Mohammed Al Sharif from Dubai Islamic Bank, along with Sylvain Vieujot from Eiffel Management and Mark Inch from Societe de la Tour Eiffel.

Eiffel Management CEO and vice chairman of Emirates REIT Sylvain Vieujot said that the Dubai's first REIT is being launched at a time of improving confidence in the Emirate's real estate market. As the Middle East economy recovers from the global economic slowdown, international investors, and those in the region, are looking for long-term, low-risk and secure investments in the Middle East. Emirates REIT can offer all of these advantages.

DIB chief of Retail & Business Banking and board member of Emirates REIT Adnan Chilwan said Emirates REIT is a move by Dubai Islamic Bank to help fuel growth in the UAE's real estate market by allowing investors to pool income-producing real estate assets under a common management and receive tradable shares in the REIT.

"The new REIT looks to attract Shariah-compliant properties such as commercial and residential buildings, warehouses, schools, hospitals and car parks and convert its rental income into dividends for investors" Chilwan said.


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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.