Bahrain-domiciled Reits now open to external investors without restrictions

The Central Bank of Bahrain amended regulations that pave the way for retail investors to invest in Bahrain-domiciled real estate investment trusts (Reit) as part of the kingdom's commitment to boost the Reit industry by making the investment vehicle more liquid.

The removal of restrictions on who can invest in real estate investment trusts will now permit all types of investors including high net worth individuals, institutional and retail investors. Reits are traded on exchanges like stocks but the underlying assets are only real estate from which a rental dividend is distributed to shareholders.

"Overall, Reits have become an important addition to the real estate investment landscape in the last few years for both retail investors and the large institutional investors; reflecting the increased growth, maturity, transparency and sophistication of the local, regional and global real estate markets," said Abdul Rahman Al Baker, executive director of financial institutions supervision at the kingdom's regulator.

Reits, which typically invest in commercial real estate, have popped up across the region in recent years to allow investors to tap the real estate market without having to buy real estate directly. Continue