UAE – SCA Investments of REITs

UAE – SCA Investments of REITs

On 8 July 2019, UAE SCA issued controls of real estate investments.

  • Administrative decision (62 / T), is amended decision no. (6 / R) for year 2019.

Real Estate Asset Requirements

  • Amended fund regulations require real estate investments meet with conditions.
  • Fund's real estate assets comply with laws in country in which property located.
  • Purchase accepted under local rights, either official contracts or via acquisitions.
  • Property should not be burdened with restrictions or obligations, held against it.
  • Remaining period of rights to free use of property is not to be less than 7 years.

Fund Controls

  • Real estate assets producing returns of General real estate investment fund, of
    less than 1%, should comprise at least 75% of the total assets of the fund.
  • Sources of income comprising real estate, interest, dividends and capital gains,
    to the General real estate investment fund, make up 90% of its total revenues.
  • Percentage of investment in free rights of use to not exceed 25% of net assets.

Effectiveness

  • This decision shall be communicated, come into effect from date of its issuance.