Oman's CMA prospectus opens real estate to firms, foreign investors

The Aman real estate investment fund permits foreign investors to own real estate in the sultanate indirectly

Oman's CMA prospectus opens real estate to firms, foreign investors
Oman News Agency
Oman's CMA prospectus opens real estate to firms, foreign investors

Oman’s Capital Market Authority (CMA) has approved the first prospectus of the Aman REIT, which is the sultanate’s first issuance of real estate investment funds aimed at enhancing economic diversification and providing a means of innovative financing.

The Aman fund has opened up multiple options for companies and individuals to invest in real estate and own investment units.  

In addition, the fund even permits foreign investors to own real estate in the sultanate indirectly, according to the state-run Oman News Agency.

The prospectus indicates that the Aman Fund will offer a minimum of 100 million investment units through a public offering priced at OMR0.102 per unit, which includes OMR0.002 as expenses for the issue of each unit.

The units will be on public offering during the subscription period – from 2 January to 16 January, 2020 – with the minimum subscription set 1,000 units and the maximum subscription set at 10 million units for individuals. For legal persons, the list indicates a minimum of 10,000,100 units and a maximum of 20 million units.

This first issuance of the real estate investment fund will reflect a capital of up to OMR20m, of which 50% will be offered for public subscription.

The Aman fund is expected to stimulate the economy as a qualitative addition to the gross domestic product (GDP) that will attract investments into Oman’s real estate. It will provide a new tributary for investment by qualifying small and large investors to enter the Omani market.

The prospectus includes information that will help investors take the appropriate decisions regarding investing in the offered units. The information includes details related to the purpose of the offering, the use of its proceeds, financial offering details, economic expectations, opportunities, risks, and clarifies the dividend policy and rights.

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