Business | Property
DIFC Investments launches real estate fund
Entity plans to invest Dh12b in domestic realty and infrastructure.
- By Babu Das Augustine, Banking Editor
- Published: 17:34 October 4, 2008
Dubai: DIFC Investments, the investment arm of the Dubai International Financial Centre (DIFC), announced on Saturday the launch of a real estate fund through its real estate arm that will invest in Dubai and the UAE's real estate sector.
Although DIFC did not announce the size of the fund, sources said the fund will start with a corpus of Dh12 billion.
"Initially the fund will be fully invested by DIFC Investments. Currently, there are no plans to attract investment from other individual or institutional investors," a source said.
Dr Omar Bin Sulaiman, Governor of DIFC and Chairman of DIFC Investments said: "The steady growth of the real estate sector in recent years and the great future prospects provide us with an excellent opportunity to diversify our portfolio. Historically, this sector has netted high returns for investors, and there is a lot room for growth and a lot of untapped potential in this sector.
Target
"Given the global econ-omic environment, our decision to invest heavily in the country's real estate and infrastructure projects will cement our position as a key player in the UAE and provides a great opportunity for diversification."
The move reflects the great potential of the UAE's real estate sector which has seen unprecedented growth over the past five years.
The segment was the biggest contributor to the UAE's economy last year, accounting for 8 per cent of the country's GDP. It continues to play an increasingly important role in the government's economic diversification policies. The fund is also expected to play as a stabilising force for the country's real estate sector.
Ebrahim Belselah, the Head of the Real Estate Division of DIFC Investments said: "The real estate projects currently underway in Dubai, and the other emirates, are changing the face of the region. Over the next few months, we will announce major investments."
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