Qatar's first REIT launched; seeks listing on QSE

“Qatar has witnessed the launch of its first-ever real estate investment trust (REIT) collective investment fund ‘Salwa REIT Fund’, which is seeking to get listed on the Qatar Stock Exchange (QSE). HMK Capital, an investment firm licensed under the Qatar Financial Centre (QFC) and regulated by the QFC Regulatory Authority, has successfully registered the Salwa REIT Fund, which is seen as a significant milestone in broadening Qatar’s financial services sector. The launch of the Salwa REIT will offer investors an economic and efficient way to own income-generating real estate assets in Qatar. It is also a strategic advancement in Qatar's ambition to build a world-class investment ecosystem, in line with the Qatar National Vision 2030 and the Third Qatar National Development Strategy (NDS3), to develop specialised economic clusters, strengthen the asset management industry, and deepen local capital markets. 'The launch of the Salwa REIT Fund by the homegrown asset manager HMK Capital marks an important step in the continued development of Qatar’s financial services sector and reflects the maturity and sophistication of the country’s investment ecosystem,' said Mansoor Rashid al-Khater, chief executive officer of QFC. At a later stage, and subject to approvals from the respective authorities, the Salwa REIT will aim to list on the QSE, which will facilitate investors access to the Qatari real estate sector, support foreign direct investment inflow, enhance market liquidity, and contribute to financial sustainability and diversification efforts in the long term. The cabinet resolution No 28 of 2020 allowed real estate investment funds that will specialise in real estate investment in the various regions and this decision will provide an opportunity that was previously unavailable to middle and limited income citizens to invest in the real estate sector. 'As Qatar’s first REIT collective investment fund, it introduces a new investment structure that can support capital market depth, broaden access to real estate investment opportunities, and contribute to the long-term growth of the asset management industry,' al-Khater said. The QFC's Capital Market Report 2020 had said 'REITs appear to be a strong contender for the next fund structure to be introduced on the QSE, backed by the listing regulations issued in 2015. 'In Qatar, regulations are in place for offering and listing investment funds and ETFs, so exposure to real assets can be offered to investors seeking diversification of their portfolios and protection against inflation,' the report had said. A PricewaterhouseCoopers study had said REITs are underpenetrated in the Middle East, but expected to grow gradually as the real estate market in the region matures in terms of quality of and access to assets, financing, governance and regulations. 'HMK Capital is committed to working with capital markets participants to develop new products that offer diversification to Qatar’s key segments,' said its chairman and founder Sheikh Hamad Mohammed Khalid al-Thani. REITs offer investors access to diversified and income-generating portfolios, with the aim to provide consistent dividend distributions, introduce new liquidity, and lead to a stronger and more resilient financial sector and real estate market, according to him.

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