Dubai’s real estate is a great way to earn good income, but buying property needs a lot of money upfront. Real Estate Investment Trusts (REITs) help you invest in property without buying a whole building or apartment.
REITs are companies that own and manage real estate. You can buy shares in these companies like you buy company stocks. In return, you get regular income through dividends from rental profits.
Whether you are new to real estate or an experienced investor, REITs are an easy way to grow your money. But how do REITs work? What are the benefits and risks? Let’s find out.
What Is a REIT?
A REIT is a company that buys, owns, and manages properties like offices, schools, apartments, or malls that generate rental income.
When you buy shares in a REIT, you become part-owner of the properties it owns. You get paid from the rent collected by those properties.
In Dubai, REITs are regulated by the Securities and Commodities Authority (SCA). This means investors are protected under the law.
Who Can Invest in REITs?
Anyone can invest in REITs, including:
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Personal Investors
People like employees, freelancers, or retirees who want passive income without handling property themselves. -
Institutional Investors
Big organizations like pension funds and investment firms invest in REITs for steady income with low risk.
Public REITs Vs. Private REITs
Here’s how Public REITs and Private REITs are different:
| Factor | Public REITs | Private REITs |
|---|---|---|
| Meaning | Listed on the stock exchange (e.g., Nasdaq Dubai). | Not listed; offered to big companies and investors. |
| Returns | Lower than private REITs. | Higher returns but with more risk. |
| Risk | Lower risk. | Higher risk with higher reward. |
| Example | Emirates REIT | SEDCO Capital |
REITs Vs. Direct Property Investment
| Factor | REITs | Buying Property Directly |
|---|---|---|
| Capital Needed | Low; depends on share price (can start from AED 5,000). | High; need money for full property. |
| Liquidity | High; sell shares easily anytime. | Low; selling property can take weeks or months. |
| Income | High dividends (80–90% of income paid to investors). | Rental income depends on finding tenants. |
| Risk | Low; spread across many properties. | Risk depends on one property doing well or not. |
| Management | No need to manage property; the REIT does it. | You manage or hire someone to manage the property. |
How REITs Work in Dubai
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REIT companies list their shares on Nasdaq Dubai or the Dubai Financial Market (DFM).
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Before listing, the company must follow legal rules and register.
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You can buy REIT shares through the stock exchange.
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The REIT company rents the properties they own.
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80–90% of the rental income is shared with investors as dividends.
Benefits of REITs
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Start with Low Investment
You can invest with as little as AED 5,000, unlike buying property. -
Earn Passive Income
REITs pay around 6–8% yearly dividends based on rent income. -
No Corporate Tax
There is no tax on your income from REITs in Dubai. -
Diversify Your Investments
REITs own different types of properties—offices, homes, malls—which spreads the risk. -
No Property Management Hassle
You don’t need to deal with tenants, maintenance, or paperwork. -
High Liquidity
You can easily sell your shares on the stock exchange whenever you want.
Risks of REITs
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Management Fees
REIT companies charge management fees, which can reduce your profits. -
Market Changes
Economic issues, policy changes, or global events can affect rent income and dividends. -
Liquidity Issues in Bad Markets
If a REIT is underperforming, it might be harder to sell your shares quickly. -
No Control Over Decisions
You cannot decide how properties are managed or who they are rented to—the company handles it.
Top REITs to Invest in Dubai (2025)
Here are the most popular and trusted REITs in Dubai:
| REIT Name | Assets & Focus |
|---|---|
| Emirates REIT | Listed on Nasdaq Dubai; owns commercial properties like offices and schools; assets worth $499.7M. |
| ENBD REIT | From Emirates NBD; owns residential and commercial properties; assets worth $216M. |
| SEDCO Capital | Saudi-based; manages properties worth $5.9B across GCC. |
| Al Rajhi Capital | Riyadh-based; total assets worth AED 459B; offers REITs across different sectors. |
| Al Bilad Capital | Owns assets worth AED 12.7B; offers Shariah-compliant REITs. |
Final Thoughts
REITs are a great way to invest in Dubai real estate without needing millions to buy property. You enjoy regular dividends, high liquidity, and low management hassle. Like any investment, there are risks, but with research and smart choices, REITs can be a strong part of your portfolio.
