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«This is a very important part of the investment horizon. We feel comfortable, as many other funds will follow us to form a sustainable market», said Anthony Taylor, Manager of the Emirates NBD Asset Management Real Estate Fund, when ENBD Reit fund was placed on Nasdaq Dubai.
The listed funds have existed in the UAE since the launch of Emirates Reit on Nasdaq Dubai in 2014. However, institutions have been creating investment tools since the 2000s.
Fund managers say that for large assets worth more than AED 1,000,000,000, the yield has dropped to 5.5-6%, as trusts compete with sovereign wealth funds, private family groups and Asian pension funds. Given that more investment-grade stocks are being closed in the Emirates. Due to the economic downturn, it is becoming increasingly difficult for companies to get money to expand. Analysts predict that there will be more funds over the years.
Last month, the fund manager of Emirates Reit announced that it had teamed up with Al Hamra Real Estate Development and National Bonds to create the first residential real estate fund in the UAE, which is expected to be placed in one of the UAE markets. Fund managers are also planning to organize funds that are based on the hotel sector and logistics.
