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Islamic REITs
Real Estate Investment Trusts (REITs) is an investment vehicle that proposes to invest at least 50 percent of its total assets in real estate, whether through direct ownership or a single-purpose company whose principle asset comprises of real assets.
The issuance of REITs guidelines by the Securities Commission (SC) helped kick-start the REITs industry in Malaysia. Subsequently, the SC released the Guidelines for Islamic Real Estate Investment Trusts (I-REITs Guidelines) to facilitate the introduction of Shariah-compliant REITs.
Malaysia is first jurisdiction in the global financial sector to issue I-REITs Guidelines. It set the global benchmark for the development of I-REITs. I-REITs Guidelines provides clear guidance on new investment opportunities in collective real estate investments through a Shariah-compliant capital market instrument.