Islamic trusts could revive Gulf property market
The real estate bust in 2008 left investors ith half-finished projects sitting in the desert sun and losses that were unlikely to be recovered.
But it appears that the emergence of Islamic real estate investment trusts (REIT) in the Middle East could help these investors. Islamic REITS differ from their conventional counterparts by banning investment in any assets that pay interest or conduct business in any forbidden industry, like gambling, alcohol or adult entertainment.
Beside the fact that it is providing an alternative investment in the Gulf Islamic finance industry it could also inject more transparency and regulation in a property sector plagued by unrealistic expectations of returns and occasionally murky dealings.
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