DFM inaugurates REITs trading with the listing of “Al Mal Capital REIT”
January 18,2021

H.E. Essa Kazim: “Significant milestone that reinforces DFM’s diversification strategy, providing investors with new products and investment opportunities”

Khalid Bin Kalban: “Through the listing, we aim to deliver on our high aspirations and strategic priorities of driving long-term value and growth to our stakeholders”

Dubai Financial Market (DFM) today hosted a bell ringing ceremony to celebrate the commencement of Real Estate Investment Trusts (REITs) trading with the listing of Al Mal Capital’s REIT, (trading symbol: AMCREIT). The introduction of REITs is a key milestone in DFM’s journey to diversify product offering and asset classes, broadening the scope of opportunities offered to its vast investor base of local and international investors.

Khalid Bin Kalban, Vice Chairman and CEO of Dubai Investments and Chairman of Al Mal Capital, rang the market opening bell in the presence of His Excellency Essa Kazim, Chairman of DFM, Hassan Al Serkal, CEO of DFM, Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital and Hamed Ali, CEO of Nasdaq Dubai and Deputy CEO of DFM.

The listing culminates the successful floating of the new fund by Al Mal Capital, a subsidiary of Dubai Investments, in November 2020. The AED 350 million proceeds of this fund will be invested by the company in a Sharia-compliant diversified portfolio of income generating properties that serve different sectors such as; healthcare, education and industrial assets, with a target annual return of 7%.

H.E. Essa Kazim, Chairman of DFM said: “The commencement of REITs trading through the listing of Al Mal Capital REIT reinforces DFM’s product offering diversification strategy, providing investors with new opportunities. Today’s listing is a key foundation for this new asset class and we are looking forward to see it gaining momentum during the coming period in line with REIT’s strong presence globally and to truly reflect the magnitude, quality and expansion of the real estate sector in Dubai by encouraging the establishment and listing of more REITs in the future. We are pleased to welcome Al Mal Capital REIT as DFM’s first REIT listing and look forward to welcoming additional REIT listings on the market, as this asset class has a promising growth potential supported by DFM’s world-class listing and trading regulations in line with international best practices and requirements of various market participants.”

Khalid Bin Kalban, Vice Chairman and CEO of Dubai Investments and Chairman of Al Mal Capital said: “We are excited to bring to the market and celebrate the successful listing of the first REIT IPO on DFM. The listing on DFM is pivotal to Al Mal Capital REIT, as the exchange is strategically located in the heart of the GCC. This provides us with the opportunity to better serve investors across local and regional markets, while allowing them to capitalize on the various investment prospects available in the UAE’s diverse sectors. The ceremony marks an important milestone for everyone involved, especially Al Mal Capital REIT as it allows it to start delivering on its aspirations and strategic priorities towards delivering long-term capital appreciation and driving significant value to stakeholders.”

The comprehensive framework for listing and trading of REITs on DFM is the outcome of a wide-ranging cooperation between DFM, the Securities and Commodities Authority (SCA) and Dubai Land Department (DLD). These regulations streamline property companies’ accessibility to the market by founding and listing REITS. The DFM has signed an MoU with the DLD as a general framework for their collaboration as well as drafting attractive rules for creation, listing and trading of REITs in collaboration with the SCA.

Statistics show that REIT markets around the globe have been registering strong growth in recent years. The cumulative market capitalization of REITs is approaching $2 trillion, as 35 countries now have active REITs legislation. REITs provide investors, mainly those who aren’t able to directly invest in the real estate sector, with the suitable vehicle to participate in the opportunities and returns of this sector by acquiring units of a REIT fund.