SEBI okay may see Islamic funds enter Indian realty Booming Islamic finance is likely to acquire assets in India through Islamic Real Estate Investment Trusts. According to a report by Moodys although IREITs are not in existence in India, the draft IREIT guidelines issued by SEBI may pave the way for these funds into the Indian property market. With high oil prices funnelling billions of dollars to the Middle East, there is an increased demands for Sharia-compliant finance products. According to Moodys, Islamic finance is now estimated to be worth around $700 billion globally while Sukuk, or Islamic bonds, are the fastest-growing segment, with volumes worldwide reaching $97.3 billion till 2007. Moodys pointed out that the property boom in the Middle East makes IREITs a much-needed product and a useful investment tool, given the existing favourable investment and regulation environment. Moreover, there has been a growing appetite for the real estate asset class among regional institutional investors as the region boasts of worlds highest concentration of high net worth individuals and family businesses, which in the GCC alone is estimated at over $1.3 trillion.
Posted on: Tue, 12 Nov 2013 10:28:21 +0000
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