On Monday, the Dubai Financial Market witnessed a ceremony to ring the bell to start trading on the occasion of the listing of the first REITs in the market, which is the “Al Mal Capital REIT” fund (trading symbol: AMCREIT), affiliated with Al Mal Capital, in a step in line with the market’s strategy to diversify products and categories Assets and provide diversified investment opportunities for its huge and growing base of local and international investors.
Khalid bin Kalban, Vice Chairman and Chief Executive Officer of Dubai Investments Company and Chairman of Al Mal Capital Company, rang the market opening bell in the presence of Issa Kazim, Chairman of the Board of Directors of Dubai Financial Market, Hassan Al Serkal, CEO of the Dubai Financial Market, Nasser Al Nabulsi , Vice Chairman and CEO of Al Mal Capital, and Hamed Ali, CEO of Nasdaq Dubai and Executive Vice President of the Dubai Financial Market.
The listing of the fund follows the completion of the initial public offering of its units by Al Mal Capital, a subsidiary of Dubai Investments, in November 2020, when the fund raised 350 million dirhams. The company intends to invest the proceeds in a diversified portfolio of income-generating real estate assets that are compatible with Islamic law in multiple sectors, including health care, education and industrial assets, with a targeted annual return of 7%.
Issa Kazim: A critical step that strengthens the product diversification strategy
Issa Kazim, Chairman of the Dubai Financial Market, said: “The start of trading REITs in the market through the inclusion of the Al-Mal Capital REIT fund is an important addition to the list of traded financial instruments, and it also strengthens the market’s strategy in the field of diversifying products and providing new investment opportunities. In our estimation, this step is an important starting point for this new class of assets, which is expected to gain greater momentum in the coming stage, in line with the strong presence of real estate investment funds in global markets, and in a way that reflects the great momentum of the real estate sector in Dubai as one of the most important real estate markets. At the regional and global levels, which enhances the opportunities for establishing and listing more real estate investment funds in the coming stage. We welcome Al Mal Capital REIT as the first real estate investment fund in the market, and we look forward to listing more real estate investment funds in the next stage, as this category of assets has promising opportunities for growth and development thanks to the attractive listing and trading environment that the market has succeeded in developing in accordance with international best practices and in a way that achieves aspirations. All categories of customers.
Khaled bin Kalban: We seek to enhance value and stimulate growth plans
Khalid bin Kalban, Vice Chairman and Chief Executive Officer of Dubai Investments and Chairman of Al Mal Capital, said: “We are very excited to celebrate the launch of Al Mal Capital REIT on the Dubai Financial Market as the first initial public offering of a real estate investment fund in the market in a very important step considering That the market has a strategic prominent position in the core of the GCC region. There is no doubt that this achievement will give us an opportunity to provide better services to investors across the local and regional markets, as it will allow them to benefit from the promising and diversified investment opportunities that exist in the various business sectors in the United Arab Emirates. This step will achieve benefits for all concerned parties, especially Al Mal Capital REIT, because it will be the starting point for the Fund to achieve its ambitions and strategic priorities in enhancing the value of capital in the long term and providing added value to all concerned parties.
It is worth noting that the Dubai Financial Market has cooperated with the Securities and Commodities Authority and the Dubai Land Department to develop a package of regulatory and legislative rules that would open the horizons of the money market to real estate companies in general, and REITs in particular, by facilitating the inclusion of categories Assets related to real estate, as the market signed a memorandum of understanding with the department that provides a general framework for coordinating efforts in this regard. It also cooperated with the Authority to prepare regulations that encourage the establishment, listing and trading of real estate investment funds.
Statistics indicate that the real estate investment funds sector has recorded an increasing growth in recent years, as its market value is close to two trillion dollars, and these funds are traded in 35 countries around the world. These funds provide investors, especially those who find it difficult to directly invest in real estate, an appropriate mechanism to take advantage of the growth opportunities and returns achieved in this sector by owning the fund units.