Islamic Finance

Middle East Islamic real estate investment on cusp of high-growth trajectory - analysts


Shariah-compliant real estate investment and financing are on a growth trajectory on the back of consumer demand and increased liquidity seeking Islamic assets. But they face competition from conventional sectors.

The launch on April 12 of Shariah-compliant Etihad real estate investment trust (REIT), reported to be worth 3 billion Emirati dirhams ($817 million), by Abu Dhabi Financial Group underlined the accelerating growth in Islamic real estate investment and financing on the back of demand from consumers and commercial entities alike. Islamic real estate investment and financing is on the cusp of a high-growth period in the United Arab Emirates (UAE) and the larger Middle East, analysts say, providing more avenues for investors to make Shariah-compliant property investments.

Underlining this growth trend, Emirates REIT, launched in November 2010, became in September 2016 the largest publicly listed Shariah-compliant REIT in the world both by total assets and by market capitalisation.

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tags:

REIT
Real estate
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Shalini Seth, White Paper Media