UAE REIT Market Overview
The UAE REIT market remains nascent compared to mature markets but provides a regulated vehicle for income-focused real estate exposure. REITs listed on Nasdaq Dubai operate under DFSA oversight within the DIFC framework, requiring minimum 80 percent distribution of net income.
| REIT | Exchange | AUM (USD mn) | Dividend Yield (%) | Discount to NAV (%) |
|---|---|---|---|---|
| Emirates REIT | Nasdaq Dubai | 780 | 6.8 | -18.5 |
| ENBD REIT | Nasdaq Dubai | 420 | 7.2 | -14.2 |
Emirates REIT: Portfolio Breakdown
| Property Type | Allocation (%) | Key Assets |
|---|---|---|
| Office | 38 | Index Tower, Office Park |
| Education | 28 | GEMS schools portfolio |
| Retail | 18 | Souq Extra, mixed-use |
| Residential | 16 | Various Dubai properties |
Emirates REIT holds a diversified portfolio anchored by education and office assets across Dubai. The education segment provides stable long-term cash flows through institutional leases, while office exposure tracks the commercial real estate cycle.
ENBD REIT: Portfolio Breakdown
| Property Type | Allocation (%) | Key Assets |
|---|---|---|
| Office | 42 | One JLT, The Edge |
| Residential | 32 | Various Dubai residential |
| Retail | 15 | Uninest, mixed-use |
| Alternative | 11 | Industrial, logistics |
ENBD REIT, managed by Emirates NBD Asset Management, maintains a higher concentration in office and residential segments. The trust has pursued an asset recycling strategy, divesting underperforming properties to improve portfolio quality.
Performance Metrics (Trailing 12 Months)
| Metric | Emirates REIT | ENBD REIT |
|---|---|---|
| Total Return (%) | 8.4 | 11.2 |
| Occupancy Rate (%) | 81 | 88 |
| Weighted Avg. Lease Expiry (yrs) | 4.2 | 3.8 |
| Funds from Operations (USD mn) | 42.1 | 28.7 |
| Expense Ratio (%) | 1.35 | 1.22 |
Structural Considerations for Investors
UAE REITs trade at persistent discounts to net asset value, reflecting limited liquidity, small free floats, and the relative immaturity of the product class in the region. Daily trading volumes average below USD 500,000, making position sizing a constraint for institutional allocators.
The regulatory framework mandates quarterly NAV reporting, annual independent valuations, and a minimum 80 percent income distribution ratio. No capital gains tax applies to REIT distributions for non-UAE entities, though the 9 percent corporate tax framework introduces considerations for domestic institutional holders.
Market Development Outlook
The Securities and Commodities Authority and ADX have signalled interest in expanding the listed REIT universe. Potential entrants include hospitality-focused trusts leveraging Dubai’s hotel asset base and industrial logistics REITs capitalising on warehouse demand. Broader REIT adoption depends on improving secondary market liquidity and attracting larger anchor assets to increase AUM scale.