REIT funds are attractive mechanism to strengthen the real estate market in the UAE

Saleh Tabakh, the expert in investment portfolio management

REIT funds are attractive mechanism to strengthen the real estate market in the UAE

Dubai, United Arab Emirate, January 20, 2023: Saleh Tabakh, the expert in investment portfolio management, stated that launching the real estate investment trust (REIT) funds are a good step, as these funds are considered an attractive mechanism to strengthen the real estate market in the UAE. Tabakh also highlighted that he welcomes the recent declaration of the Securities & Commodities Authority “SCA” regarding the simplification and facilitation of the local REIT funds’ rules within the frame of offering attractive & diversified investment mechanisms.

“These funds can make a qualitative leap in the available financing means within the real estate market”, Tabakh, the CEO of Al-Andalus Courtyard Real Estate Developer said. He stated that the UAE has one of the best real estate markets regionally & globally, amidst huge abilities, attractive opportunities, and unprecedented facilities offered by the real estate sector in the country, as well as the modern investment tools that became common within the UAE during the recent years, such as investment in REIT funds, as these tools meet the aspirations of real estate investors.

Tabakh noted that Dubai currently witnesses unrivalled turnout from the part of local & foreign investors, simultaneously with the listing of some Dubai’s public governmental institutions in stock exchanges, as they launched initial public offering “IPO”. He underscored the fact that real estate is deemed among the significant investments which benefit from the unprecedented investment vigor, let alone that it is the most secure investment, as it yields fixed returns & also due to the rise of assets’ values. Accordingly, the role of REIT funds emerged as an investment platform which provides the investors with alternative options for investment in stocks, not to mention that it offers also financing opportunities to participate in the development of megaprojects, increase the turnover of developers, and provide the real estate liquidity. 

“REIT funds are financial vessels which collect money from their investors and shareholders, with the aim of investing this money in the real estate sector, against the issuance of investment units of equal values & rights for these investors”, Tabakh explained.

“The percentage of ownership for any investor or shareholder in the REIT fund is calculated according to the number of units that he owns, as compared to the total number of units in the fund. These funds enable individuals & institutions of accessing a diversified portfolio of real estate assets, such as residential towers, with the main goal of bringing profits, besides saving huge profit when the price or value of real estate increases, in a manner which assures a staple income that adds diversified capital earnings”, he added.  

Tabakh stressed that the first REIT fund in the Middle East was launched since 13 years only, and was in the UAE.

As for the working mechanism of REIT funds, Tabakh advised that these funds are established by a listed company, bank, or financial investment company. “The entity which establishes the REIT fund determines the investment opportunities in the same, after studying the projects, setting their goals, capitals, the plans of their implementation, and the targeted entities for real estate contribution”, he noted.

“The real estate units are offered in public contribution according to the terms prescribed by the entity which established the REIT fund, and the terms differ from a fund to another. So, it is necessary for the potential investors in REIT funds to check the terms of each fund and identifying the best ones, before taking the final decision”, Tabakh added.

He stated that investment in REIT funds brings many benefits, e.g. providing the investors with the opportunity to invest within a portfolio that includes various real estate assets, which in turn bring high income, as this portfolio is supported by rent contracts of long rental terms and high amounts, as well as the participation in the real estate market inside and outside the UAE, a matter which helps increase the added value, trough bringing a capital return on the long run.

Tabakh indicated that REIT funds enable the investors of acquiring the properties of single rents within sectors of rabid growth, e.g. educational & health properties. Moreover, REIT funds enjoy professional administrations, which can assess the risks & identify the best investment ways & tools, he continued.

He added that SCA one month ago disclosed its intention to launch soon the new scheme of investment funds, which aims to strengthen this industry locally, as it is deemed one of the investment tools that matches the investors in the securities sector.

 “The new scheme aims to alleviate the investment constraints and requirements of investment policies of the public funds, in a manner which meets the best international practices, simplify and facilitate the rules of local REIT funds, and also add new types of specialized funds, e.g. family funds, constructive REIT funds, direct financing funds, investment in precious alloys, environmental, social, and governance “ESG” funds, capital protection funds, charitable investment funds, and qualified goods investment funds ”, Tabakh concluded.

About Saleh Tabakh:

Saleh Tabakh, who has extensive experience in the real estate market exceeding 18 years, has been CEO of Al Andalus Courtyard Real Estate Developer in Dubai since November 2020.

He was an adviser to the CEO and Head of Trade, Development and Operations in the “MAG Real Estate Development” between 2019 and 2020, on the board of “GLG”, a consultant based in New York City, between 2016 and 2021, CEO of the “Delta International” real estate company between 2014 and 2019 and General Manager for Middle East  at the “United Excellence”group between 2013 and 2014.

He held several positions in the Dubai Properties Group over a period of ten years, including: Chief Commercial Officer between 2010 and 2012, Director of Marketing and Communications between 2009 and 2010, Senior Executive Officer of Marketing and Communications between 2007 and 2009, and Property Executives between 2006 and 2007. During his career he contributed to important projects such as the “Jumeirah Beach Residence” , “Business Bay”, “Sunrise and Sunset Mirdif”, “Layan” and “Al Waha” projects in Dubailand, “Al Khail Gate” and “The Villa”.

Saleh Tabakh supervised and contributed to more than 18 important real estate projects in the Emirate of Dubai, and participated with the Dubai Land Department in launching initiatives, the most important of which is the crowdfunding initiative, collective ownership, and other important initiatives.

He began his professional career in the field of building materials, where he worked in the technical support department in the “National Paints” factories between 2003 and 2006.

He holds a master’s degree in business development in 2015 from the Open University in the United Kingdom, a master’s degree in risk management in 2010 from the University of Bradford, and a bachelor’s degree in entrepreneurship in 2003 from the University of Greenwich.

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