Trading began in Emirates REIT on Tuesday on NASDAQ Dubai following its initial public offering (IPO), in the first listing of a Real Estate Investment Trust (REIT) on an exchange in the GCC.
Emirates REIT raised $175 million in its IPO and was 3.5 times oversubscribed. Proceeds of the IPO will primarily be used to fund future acquisition opportunities, while a portion will go towards investment in existing assets.
Abdul Wahed Al Fahim, chairman of NASDAQ Dubai, said: “Through Emirates REIT, investors now have access to a new type of attractive asset class for the first time in the region.
"The listing demonstrates Dubai’s ability to provide an efficient platform for capital-raising for a wide variety of issuers seeking global visibility and first class regulation.”
Hamed Ali, chief executive of NASDAQ Dubai, added: “As Dubai’s economy maintains strong growth, the exchange is preparing for expansion with new listings of equities as well as innovative alternative asset classes.
"Through its close links to investors around the world, NASDAQ Dubai offers issuers all the advantages of an international exchange from a base in the business and financial hub of the region.”
Emirates REIT invests in Sharia’a-compliant real estate assets.
REITs are a type of property fund. Investors receive income from the properties in which the REIT invests, through dividends.
Emirates REIT is incorporated in the Dubai International Financial Centre (DIFC), where NASDAQ Dubai is located.For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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