The government has announced the establishment of the Real Estate Investment Trusts (REITs), which will be licensed and supervised by the Capital Market Authority (CMA).
Sheikh Abdullah bin Salem al Salmi, CEO, CMA, said the fund will be responsible for investment in the real estate funds, that will focus on the existing and new income-generating properties.
Al Salmi added that the ‘Real Estate Fund’ represents a positive step that will contribute to establishment of an important financing tool and open the way for a large segment of the community to contribute and benefit from the real estate activity in the Sultanate.
The minimum amount of capital invested in the Real Estate Investment Fund shall be pursuant to the provisions of the Regulation of Real Estate Investment Funds Article 244, in accordance with the regulations of the Real Estate Investment Funds – which are regulated by the Securities Act.
The real estate investment funds will be available for the public on the basis that a portion of the fund’s capital will be offered for public or private placement as listed in the regulation. Its investment units can be traded through the Muscat Securities Market.
The investment funds will be managed and supervised by specialized institutions and will be licensed by CMA, as they will be traded like other investment instruments.