IslamicFinance.de

The Islamic version of a Real Estate Investment Trust (REIT) has to follow certain principles and rules in accordance with Shariah law. Malaysia was the first country that issued guidelines for Islamic REITS as early as in 2005, whereby a Shariah committee has to assess any property to be acquired by an Islamic REIT towards non-permissible activities of prospective tenants and sub-tenants. However, a certain quota of non-permissible activities is sometimes tolerated. The Middle East also started to adapt the new concept of Islamic REITs. However, the products have not developed as rapidly as in Southeast Asia and are still more or less handled as a regional collective investment scheme.