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Oman REIT Fund offers 7.5 per cent annual dividend

24 Jan 2021

With the launch of the RO65.48mn Oman REIT Fund and its RO26.1mn initial public offering (that can go up to RO39.2mn), both Omani and non-Omani investors are presented with an unmatched opportunity to invest their money safely in one of the most promising investment instruments in the sultanate.

Allowing subscribers to the fund to participate in the high potential Omani real estate sector in a hassle-free manner, Oman REIT Fund is offering good returns with a targeted annual dividend of 7.5 per cent that is expected to grow to 8.2 per cent over a five-year period.

Investment analysts are looking at Oman REIT Fund as a game-changer in the sultanate’s real estate investment domain, given the multiple benefits offered to the fund’s subscribers. With its diversified, balanced and high-occupancy assets portfolio spread across strategic localities and sectors in the sultanate, Oman REIT Fund has positioned itself as a pioneer and leader in Oman’s real estate investment trusts (REIT) sector.

Jasser al Aulaqi, CEO of Shumookh Fund Management LLC which manages Oman REIT Fund, said, “Oman REIT Fund’s core objective is to provide investors with a diversified, stable and sustainable income stream, while also allowing them to benefit from organic growth and value-added opportunities so that unitholder returns are maximised.”

Explaining how Oman REIT Fund qualifies as the best-in-class investment instrument available today, Tariq A Razeq, deputy general manager at United Securities which is the issue manager for Oman REIT Fund’s IPO, said, “The key investment features of Oman REIT Fund include attractive yield driven by a large and scalable pan-Oman asset portfolio; distribution of stable and high dividend on a continuous basis; the large fund size; and the opportunity to gain exposure to a potential recovery in Oman’s real estate sector.”

“The fund is also attractive as Oman’s economic diversification efforts are expected to bring in positive results and the real estate sector’s contribution to national GDP is set to rise considerably. The long tenure of the assets is another factor that enhances the value and appeal of Oman REIT Fund,” Razeq said.

Distributed across premium residential cum commercial, office and retail, logistics and industrial properties, the diverse range of assets owned by Oman REIT Fund is poised to take full advantage of the government’s focus on economic diversification that drives the growth and sustainability of Oman’s vibrant real estate sector, as well as the government’s Vision 2040 that stresses on high-paced infrastructure development.


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