Muhammad Zubair Mughal expressed that Islamic REIT is necessary for the development of the global real estate industry. He noted that the first Islamic REIT was launched in 1960 in the US and now provides funds for real estate in over 30 countries, though Islamic REITs make up a small portion of the $850 billion global REIT industry. Malaysia launched the first Islamic REIT in 2006 and it has grown rapidly in the past 7 years. Islamic REITs can help manage liquidity for Islamic financial institutions and address demands for housing finance and microhousing in underdeveloped countries. The Securities and Exchange Commission of Pakistan is working to expand the REIT industry in Pakistan to further develop the real estate sector.

1. CENTRE OF ISLAMIC
BANKING & ECONOMICS
Press Release
Islamic REIT is Mandatory for the Development of Real Estate Industry / Muhammad Zubair
Mughal
Micro Housing Finance demand can be satisfied through Islamic REIT
September 26, 2013
(Kuala Lumpur) Islamic REIT (Real Estate Investment Trust) is a beautiful addition to the Islamic Finance Industry
with which the Real Estate Industry can be promoted internationally. Mr. Muhammad Zubair Mughal, CEO of
AlHuda Centre of Islamic Banking and Economics (CIBE), expressed these views during his speech on the topic of
“Islamic REITs” in the Two Days Conference “REITs UNLOCKED” (18th
Sep, 2013) held in the Capital of Malaysia
(Kuala Lumpur). He told that first Islamic REIT was launched in 1960 in America and now REIT is actively providing
the funds to Real Estate Industry in more than 30 countries of the world including Malaysia, Pakistan, Japan,
Korea, Canada, UK and Australia for the smooth growth and development of Real Estate Industry while the global
volume of Real Estate Industry has reached at US $ 850 billion and also it is worth mentioning that 72% of total
global investment in Real Estate is still in America but the amazing fact is the least share of Islamic REIT in the
global REIT Industry. First Islamic REIT was initiated by Malaysia in June, 2006 and growing rapidly from last 7 years
in its age of infancy.
He added that Islamic Bonds (Sukuk) were used in the Middle East for the development of Real Estate, although
this approach was partially successful but not everlasting because Sukuk has some challenges of current upheavals
in the property market of Middle East, although the Real Estate market of Middle East can be managed and
settled with the induction and execution of Islamic REITs. Inter alia Islamic Banking and Finance market shall have
more financial instruments to ensure the Shariah adherence of their investment portfolio through Islamic REITs,
which can potentially be used to manage the liquidity of Islamic Financial Institutions.
He also told that Islamic REITs can be productively used in underdeveloped countries by addressing the demand of
Housing Finance and Real Estate as well to satisfy the ultimate demand of micro housing. The Islamic REIT will not
only provide the Shariah compliant products to the corporate industry rather it will turn the dream of more than
100 million homeless people into reality around the globe for getting their homes/houses. He mentioned that
Securities and Exchange Commission of Pakistan (SECP) has designed two structures to streamline and grow the
REIT Industry and it is expected that, in coming days, the Real Estate Industry will grow through REITs in Pakistan.
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