GCC REIT Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 10.37 Billion |
| Market Size (2029) | USD 15.40 Billion |
| CAGR (2024 - 2029) | 8.24 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
GCC REIT Market Analysis
The GCC REIT Industry is expected to grow from USD 10.37 billion in 2024 to USD 15.40 billion by 2029, at a CAGR of 8.24% during the forecast period (2024-2029).
The GCC has seen several Real Estate Investment Trusts (REITs) listed in stock exchanges in the past few years. This accelerated after Saudi Arabia's Capital Markets Authority (CMA) approved the listing of REITs in 2016 as a part of the National Transformation Program (NTP) and Saudi Vision 2030. Due to the economic crisis in the wake of the COVID-19 pandemic, many of the listed REITs have seen a steep decline in their share prices and market capitalizations.
REITs are not as popular in the GCC as in advanced countries despite the region being home to wealthy individuals and large institutional investors. The lack of a regulatory framework for the listing and operation of REITs remains a major hindrance to its development in the region. However, the region's capital markets authority (CMA) has started revamping regulations to pave the way for the development of alternative investments.
The future looks promising for REITs in GCC, especially with the new class of investors looking for investment products to diversify their portfolios in the local markets. Islamic REITs can be a preferable option for traditional investors who wish to invest in Sharia-compliant products in different asset classes, such as real estate.
GCC REIT Market Trends
This section covers the major market trends shaping the GCC REIT Market according to our research experts:
Growing Asset Allocation to Real Estate by Large Investors in The Region
Only 33% of the SWFs allocated 10% or more toward real estate. However, that is expected to change, with about 70% of the SWFs targeting a 10% or more allocation towards real estate in GCC. The reason is the real estate sector's ability to achieve steady cash flows through rental income and inherent ability to act as a hedge against inflation (due to contractual escalations in long-term contracts) besides healthy yields and the prospect of capital appreciation.
The property price correction in the United Arab Emirates has triggered many investors to explore alternate investment avenues to preserve and grow their wealth. Ironically, the current downturn in the real estate sector is also an opportune time to invest in a Real Estate Investment Trust (REIT).
GCC REITs Average 1-Year Returns
REITs in the United Arab Emirates were offering healthy dividend yields compared to the global average. However, the story emerging in Saudi Arabia was a little different, with REITs offering an average dividend yield of 2.7%. Part of the issue in Saudi Arabia was that there was a sudden rush in listings with insufficient diligence done on the quality of assets. Early entrants to the market were able to obtain an initial premium on the listing. However, the long-term performance of a REIT is determined by the underlying quality of the real estate.
UAE has higher returns than most of the world's popular real estate investment sites as the rental income is tax-free due to tax exemption on capital gains.
GCC REIT Industry Overview
The report includes an overview of REITs operating across GCC. We wish to present a detailed profiling of a few major companies, which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are Al Rajhi REIT, Riyad REIT, Emirates REIT, ENBD REIT, and Jadwa Saudi REIT.
GCC REIT Market Leaders
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Al Rajhi REIT
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Riyad REIT
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Emirates REIT
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ENBD REIT
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Jadwa Saudi REIT
*Disclaimer: Major Players sorted in no particular order
GCC REIT Market News
- In September 2022, Saudi Arabia introduced a real estate investment trust (REIT) regime. In November 2016, Riyad REIT was the first REIT to be listed in Saudi Arabia (and only the second REIT to be listed in the Middle East), which was followed by another 17 REITs up to July 2022, with a number of them also increasing their capital to acquire additional assets.
- In January 2021, the Dubai Financial Market (DFM) began trading in Real Estate Investment Trusts (REITs) with the listing of Al Mal Capital's REIT.
GCC REIT Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Returns And Dividends - Key Performance Indicators for REITs
4.6 A Brief on Regulatory Environment
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Country
5.1.1 United Arab Emirates
5.1.2 Saudi Arabia
5.1.3 Bahrain
5.1.4 Oman
5.1.5 Qatar
5.1.6 Kuwait
6. COMPETITIVE LANDSCAPE
6.1 Market Competition Overview (Market Concentration And M&A Deals)
6.2 REITs Profiles
6.2.1 Riyadh REIT
6.2.2 Emirates REIT
6.2.3 ENBD REIT
6.2.4 Al Rajhi REIT
6.2.5 Jadwa Saudi
6.2.6 Derayah REIT
6.2.7 Alkhabeer REIT
6.2.8 Swicorp Wable REIT
6.2.9 Bonyan REIT*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
GCC REIT Industry Segmentation
An understanding of the GCC REIT industry, regulatory environment, REITs, and their business models, along with detailed market segmentation, product types, revenues and dividends, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments. The GCC REIT Industry is segmented based on country (United Arab Emirates, Saudi Arabia, Oman, Bahrain, Qatar, and Kuwait). The report offers market size and forecasts in value (USD Billion) for all the above segments.
| By Country | |
| United Arab Emirates | |
| Saudi Arabia | |
| Bahrain | |
| Oman | |
| Qatar | |
| Kuwait |
GCC REIT Market Research FAQs
How big is the GCC REIT Market?
The GCC REIT Market size is expected to reach USD 10.37 billion in 2024 and grow at a CAGR of 8.24% to reach USD 15.40 billion by 2029.
What is the current GCC REIT Market size?
In 2024, the GCC REIT Market size is expected to reach USD 10.37 billion.
Who are the key players in GCC REIT Market?
Al Rajhi REIT, Riyad REIT, Emirates REIT, ENBD REIT and Jadwa Saudi REIT are the major companies operating in the GCC REIT Market.
What years does this GCC REIT Market cover, and what was the market size in 2023?
In 2023, the GCC REIT Market size was estimated at USD 9.58 billion. The report covers the GCC REIT Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the GCC REIT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC REIT Industry Report
The GCC REIT market is segmented based on countries, including the United Arab Emirates, Saudi Arabia, Oman, Bahrain, Qatar, and Kuwait. The market size and forecasts in value are provided for all these segments. The GCC REIT market cap highlights the significant financial scale of the industry. The annual report offers comprehensive insights into the market outlook, detailing the projected growth rate and market size.
Industry trends and market index are crucial for understanding the shifts within the sector. The market share analysis provides a clear picture of the distribution among key players. The industry analysis and industry outlook offer a detailed examination of the market dynamics and future trends. The industry overview gives a broad perspective on the current state of the market, while the market update ensures that stakeholders are informed of the latest developments.
Sector analysis and industry statistics are essential for a deeper understanding of the market structure and performance metrics. The market forecast and market predictions provide a forward-looking view of the industry, essential for strategic planning. The market review and market segmentation help in identifying specific areas of growth and opportunity.
The market value and market growth are critical indicators of the financial health and expansion potential of the GCC REIT market. The report example and report pdf offer a tangible reference for the data and analysis presented. Research companies play a vital role in compiling and interpreting the market data, ensuring the accuracy and relevance of the information provided.
In summary, the GCC REIT market is characterized by a robust market cap and a detailed annual report that outlines the market outlook and growth rate. Industry analysis, industry outlook, and industry trends are key to understanding the market dynamics. The market index, market share, and sector analysis provide a comprehensive view of the market structure. Market data, market forecast, and market predictions are essential for future planning, while the market review and market segmentation highlight specific areas of interest. The market value and market growth underscore the financial potential of the market, supported by detailed industry statistics and research companies' insights.
