Qatar Innovation and Reform

IFN COUNTRY CORRESPONDENT

Qatar: Innovation and reform

QATAR Qatar where the first major oil reserve Interior, has introduced a new system was discovered. This was a discovery that allows foreign investors to obtain By Amjad Hussain which, according to Dukhan Bank, “laid residency permits for themselves and the foundations for Qatar’s economic their families in Qatar for the duration Qatar Islamic Bank (QIB)’s ‘Aamaly’ and social growth for over eight of their ownership of real estate, subject program — Aamaly meaning ‘my decades”, and is the inspiration behind to the terms of the Decision. business’ in Arabic — is a program the new brand. developed by QIB that offers a variety The Decision aims to promote foreign of services to SMEs in Qatar, including The rebranding announcement comes investment in real estate, to develop guidance and advice, financial services, nearly one year after the completion of the real estate sector and to diversify an SME-dedicated banking center, the merger between Barwa Bank and the economy of Qatar. As a result, we 24-hour banking, flexible lending and the International Bank of Qatar and also expect to see a rise in real estate financing options, as well as other it reflects the bank’s vision of shifting financing activity within local Qatari services and benefits. toward service and product innovation. Islamic banks. In addition to the Aamaly initiative, QIB The Council of Ministers of Qatar has This development follows a number of is a contributor to Qatar Development issued Decision Number 28 of 2020 reforms introduced in Qatar over the Bank’s Al-Dhameen program, which is (the Decision) determining the areas in last few months, notably the issuance of a guarantee program that encourages which foreigners may own and benefit the executive regulations of the foreign banks to provide financing to start-ups from real estate in Qatar, subject to the investment law, the PPP law and labor and SMEs to assist them in launching or terms, conditions and controls of the reforms. expanding their businesses. Decision. Amjad Hussain is a partner at K&L Gates. Barwa Bank has been rebranded as The Ministry of Justice of Qatar, in He can be contacted at Amjad.Hussain@ ‘Dukhan Bank’ effective from October collaboration with the Ministry of klgates.com. 2020. Dukhan is a city in the west of

SEC of Sri Lanka introduces REIT framework

SRI LANKA of an Extraordinary Gazette notification and the distribution of ownership by the SEC of Sections 53 and 13 of the among the people of Sri Lanka. By Shazuli Raheem Securities and Exchange Commission of Sri Lanka Act, No.36 of 1987. The property-backed alternative The Securities and Exchange investment platform will not only Commission of Sri Lanka (SEC) has These rules, which are comprehensive, benefit investors who otherwise will finally succeeded in introducing a REIT will govern the setting up of and not be able to invest in real estate due to framework, after it and along with conduct of a Sri Lankan REIT. Specific spiraling property prices but also benefit other stakeholders had contemplated provisions have been included for the entrepreneurs who are keen to make this need for some time. The REIT verification of title and valuation of inroads into real estate investments, as framework and proposed initiatives property that will form part of the assets well as be an active contributor to the will provide the general public of Sri of the REIT. real estate industry. Lanka with guidelines on making investments, thereby benefiting from Among the requirements under In addition to other benefits, investors any property-related income and value this framework is the mandatory will also have the added comfort of appreciation. distribution of approximately 90% investor protection due to REITs being of income to unitholders, which is regulated by the SEC, which maintains REITs have now been introduced currently not a requirement for any of high regulatory standards. to the Sri Lankan capital market the listed entities. approximately 23 years after corporate The introduction of REITs is seen as a bonds were introduced back in 1997. Further, due to the availability of the tax crucial capital market initiative which is pass-through mechanism to unit trusts, envisaged to benefit the country as a While drawing up the REIT framework, REITs could also benefit as a viable whole by being a catalyst for foreign special consideration was given to the business concept for Sri Lanka that will investment, planned urbanization, local environment in which REITs are is open new horizons for entrepreneurs to employment generation, optimization of expected to operate, ensuring that they take the real estate industry to greater land usage and such. are best suited to the local market. heights. Shazuli Raheem is a senior banker and The rules introduced by the SEC is an According to the SEC, REITs are only Shariah expert at Amana Bank. He can be extension of the current Unit Trust Code allowed as listed REITs on the Colombo contacted at [email protected]. and the new rules which came into Stock Exchange, ensuring transparency effect from the 31st July 2020 in the form