GCC REIT Industry Overview
| Study Period: | 2018-2027 |
| CAGR: | 2.7 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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GCC REIT Market Analysis
The GCC REIT Industry is projected to register a CAGR of 2.7% during the forecast period of 2022-2027.
The GCC has seen several Real Estate Investment Trusts (REITs) listed in stock exchanges in the past few years. This accelerated after Saudi Arabia’s Capital Markets Authority (CMA) approved the listing of REITs in 2016 as a part of the National Transformation Program (NTP) and Saudi Vision 2030. Due to the economic crisis in the wake of the COVID-19 pandemic, many of the listed REITs have seen a steep decline in their share prices and market capitalizations.
REITs are not as popular in the GCC as in advanced countries despite the region being home to wealthy individuals and large institutional investors. The lack of a regulatory framework for the listing and operation of REITs remains a major hindrance to its development in the region. However, the region's capital markets authority (CMA) has started revamping regulations to pave the way for the development of alternative investments.
The future looks promising for REITs in GCC, especially with the new class of investors looking for investment products to diversify their portfolios in the local markets. Islamic REITs can be a preferable option for traditional investors who wish to invest in Sharia-compliant products in different asset classes, such as real estate.
GCC REIT Industry Segments
An understanding of the GCC REIT industry, regulatory environment, REITs, and their business models, along with detailed market segmentation, product types, revenues and dividends, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments. The GCC REIT Industry is segmented based on country (United Arab Emirates, Saudi Arabia, Oman, Bahrain, Qatar, and Kuwait). The report offers market size and forecasts in value (USD Billion) for all the above segments.
| By Country | |
| United Arab Emirates | |
| Saudi Arabia | |
| Bahrain | |
| Oman | |
| Qatar | |
| Kuwait |
GCC REIT Market Trends
This section covers the major market trends shaping the GCC REIT Market according to our research experts:
Growing Asset Allocation to Real Estate by Large Investors in The Region
Only 33% of the SWFs allocated 10% or more toward real estate. However, that is expected to change, with about 70% of the SWFs targeting a 10% or more allocation towards real estate in GCC. The reason is the real estate sector's ability to achieve steady cash flows through rental income and inherent ability to act as a hedge against inflation (due to contractual escalations in long-term contracts) besides healthy yields and the prospect of capital appreciation.
The property price correction in the United Arab Emirates has triggered many investors to explore alternate investment avenues to preserve and grow their wealth. Ironically, the current downturn in the real estate sector is also an opportune time to invest in a Real Estate Investment Trust (REIT).
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GCC REITs Average 1-Year Returns
REITs in the United Arab Emirates were offering healthy dividend yields compared to the global average. However, the story emerging in Saudi Arabia was a little different, with REITs offering an average dividend yield of 2.7%. Part of the issue in Saudi Arabia was that there was a sudden rush in listings with insufficient diligence done on the quality of assets. Early entrants to the market were able to obtain an initial premium on the listing. However, the long-term performance of a REIT is determined by the underlying quality of the real estate.
UAE has higher returns than most of the world's popular real estate investment sites as the rental income is tax-free due to tax exemption on capital gains.
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GCC REIT Market Competitor Analysis
The report includes an overview of REITs operating across GCC. We wish to present a detailed profiling of a few major companies, which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are Al Rajhi REIT, Riyad REIT, Emirates REIT, ENBD REIT, and Jadwa Saudi REIT.
GCC REIT Market Top Players
Al Rajhi REIT
Riyad REIT
Emirates REIT
ENBD REIT
Jadwa Saudi REIT
*Disclaimer: Major Players sorted in no particular order
GCC REIT Market Recent Developments
- In September 2022, Saudi Arabia introduced a real estate investment trust (REIT) regime. In November 2016, Riyad REIT was the first REIT to be listed in Saudi Arabia (and only the second REIT to be listed in the Middle East), which was followed by another 17 REITs up to July 2022, with a number of them also increasing their capital to acquire additional assets.
- In January 2021, the Dubai Financial Market (DFM) began trading in Real Estate Investment Trusts (REITs) with the listing of Al Mal Capital’s REIT.
GCC REIT Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain / Supply Chain Analysis
4.5 Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Returns And Dividends - Key Performance Indicators for REITs
4.7 A Brief on Regulatory Environment
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Country
5.1.1 United Arab Emirates
5.1.2 Saudi Arabia
5.1.3 Bahrain
5.1.4 Oman
5.1.5 Qatar
5.1.6 Kuwait
6. COMPETITIVE LANDSCAPE
6.1 Market Competition Overview (Market Concentration And M&A Deals)
6.2 REITs Profiles
6.2.1 Riyadh REIT
6.2.2 Emirates REIT
6.2.3 ENBD REIT
6.2.4 Al Rajhi REIT
6.2.5 Jadwa Saudi
6.2.6 Derayah REIT
6.2.7 Alkhabeer REIT
6.2.8 Swicorp Wable REIT
6.2.9 Bonyan REIT*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
GCC REIT Market Research FAQs
What is the study period of this market?
The GCC REIT Industry market is studied from 2018 - 2027.
What is the growth rate of GCC REIT Industry?
The GCC REIT Industry is growing at a CAGR of 2.7% over the next 5 years.
Who are the key players in GCC REIT Industry?
Al Rajhi REIT, Riyad REIT, Emirates REIT, ENBD REIT, Jadwa Saudi REIT are the major companies operating in GCC REIT Industry.
GCC REIT Industry Industry Reports
In-depth industry statistics and market share insights of the GCC REIT Industry sector for 2020, 2021, and 2022. The GCC REIT Industry research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the GCC REIT Industry report PDF.
