Five months after the first real estate investment trust (REIT) was introduced in Dubai, local investors are showing little enthusiasm for the product.
There are no new property REITs scheduled to launch, Simon Gray, the director of supervision at the Dubai Financial Services Authority (DFSA), said this week. There is interest from financial institutions, but "it may take some time" for REITs to gain traction in the UAE, Mr Gray said.
The potential for REITs created a stir last year when the DFSA implemented a framework for creating the trusts. REITs were expected to add much-needed liquidity to the market, giving investors a low-cost vehicle to invest in property.
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