Bloomberg: IPOX® CEO Schuster Comments on Dubai's Property Boom and REIT IPO Potential

A recent Bloomberg ECM Watch article, "Why Dubai’s Property Boom Could Aid an IPO Upturn," by Laura Gardner Cuesta, explores the significant activity in Dubai's property market and its potential to invigorate the IPO landscape, especially for Real Estate Investment Trusts (REITs). The piece highlights the overwhelming demand for Dubai Holding’s residential REIT IPO, which attracted $15 billion in orders for a $584 million offering, signaling strong investor interest in the sector. This surge is attributed to the emirate's sustained housing market strength, with prices climbing significantly and a notable influx of new residents.

The article featured commentary from IPOX® CEO Josef Schuster, who provided insights into the rising prospects of REITs in the UAE. Schuster noted the established role of REITs in global IPO markets and projected their growing importance in the UAE as a distinct asset class.

He was quoted saying, “For many decades, REITs have played an important role in IPO activity across Asia and the United States, and we expect REIT IPOs to gain traction in the UAE as a separate tradeable asset class.”

Schuster also highlighted the appeal for international investors: “For international REIT investors, the asset could present an opportunity to diversify into the region at attractive dividend yield and at virtually no exchange rate risk.” He further added that “Pricing reasonably and delivering on earnings will help to facilitate secondary share sales, increasing liquidity and potential index inclusion.”

The report also touches upon other UAE companies looking to leverage the property boom with first-time share sales, indicating a dynamic period ahead for the region's equity capital markets.

Read the full article on the Bloomberg Terminal (subscribers only): https://blinks.bloomberg.com/news/stories/SWLY9QDWX2PS