The Dubai Financial Market (DFM) has signed a Memorandum of Understanding (MoU) with Dubai Land Department (DLD) to open up new opportunities in the financial market for real estate companies, with a particular focus on real estate trust funds (REITs), and facilitate the listing of both the companies operating in the real estate sector and their assets.

His Excellency Essa Kazim, Chairman of the DFM, and His Excellency Sultan Butti bin Mejren, Director General of DLD, signed the MoU in the presence of senior representatives from both parties.

His Excellency Essa Kazim commented: "The DFM is fully committed to creating the necessary frameworks for various sectors — with precedence given to the real estate sector due its importance in Dubai — to take advantage of the benefits of being listed with us. We are delighted to sign this monumental agreement with DLD, which will strengthen the cooperation between our two institutions and is significant within the context of our 2021 strategy, which aims to diversify product offerings and attract issuers from various economic sectors."

His Excellency continued: "Our agreement will encourage a greater number of real estate companies and REITs to list on the market due to the many incentives included in the MoU. The DFM is also developing a new platform for the listing and trading of REITs that is expected to have a promising future considering the growing activity in Dubai's thriving real estate sector."

His Excellency Sultan Butti bin Mejren said: "Our MoU with the DFM aims to stimulate investment in the real estate sector and promises to enrich the sector via opportunities and incentives for major listed companies on the market. It will also facilitate the process for obtaining funds in an organised and transparent manner. Through our cooperation with the DFM, we will regulate and control the registration procedures for land and property owned by listed companies and REITs in an effort to strengthen our relations with various governmental entities."

His Excellency concluded: "The listing of real estate companies on the financial market will lead to an increase in the market's momentum, and will certainly attract new players looking to invest in Dubai's dynamic real estate sector due to the DFM's positive regional and international reputation."

The agreement represents a framework for both entities to promote the listing of REITs on the DFM through the sharing of information and sector knowledge, and includes numerous DLD fee incentives for real estate companies and REITs.