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.