The Dubai Financial Market (DFM) and the Dubai Land Department (DLD) have signed a memorandum of understanding (MOU) that will create more incentives for real estate trust funds (REITs) listed and traded on the financial market. Offering “numerous DLD fee incentives for real estate companies and REITs”, the partnership aims to open new opportunities in the financial market and encourage the listing of real estate firms and their assets on the DFM.
Essa Kazim, chairman of the DFM, said a dedicated platform for REITs listed and traded on the DFM will be introduced. “Our agreement will encourage a greater number of real estate companies and REITs to list on the market due to the many incentives included in the MOU,” said Kazim. “The DFM is also developing a new platform for the listing and trading of REITs that is expected to have a promising future considering the growing activity in Dubai’s thriving real estate sector.”
Sultan Butti Bin Mejren, director general of the DLD, highlighted the partnership’s role in attracting new players to the property market. “The listing of real estate companies on the financial market will lead to an increase in the market’s momentum, and will certainly attract new players looking to invest in Dubai’s dynamic real estate sector due to the DFM’s positive regional and international reputation.”
Bin Mejren added: “Our MOU with the DFM aims to stimulate investment in the real estate sector and promises to enrich the sector via opportunities and incentives for major listed companies on the market. It will also facilitate the process for obtaining funds in an organised and transparent manner. Through our cooperation with the DFM, we will regulate and control the registration procedures for land and property owned by listed companies and REITs in an effort to strengthen our relations with various governmental entities.
Kazim said the partnership will provide the template for similar initiatives to be rolled out for other industries. “The DFM is fully committed to creating the necessary frameworks for various sectors — with precedence given to the real estate sector due its importance in Dubai — to take advantage of the benefits of being listed with us,” he said.
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