The Principles of Malaysia Islamic Real Estate Investment Trust: Contemporary Islamic Core Values

  • William Choo Keng Soon Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Malaysia
Keywords: Islamic REITs, Shariah Principles, Islamic Principles


The Islamic capital market operates in parallel with convention capital market in expanding, deepening, and broadening Malaysia financial system. The Islamic Real Estate Investment Trust (Islamic REIT) serves as an alternative Islamic investment instrument to sukuk and shariah compliant stock, which observes Islamic REIT experiencing a significant growth and demand in portfolio property value and Islamic market capitalization. The attractiveness of Islamic REIT has made it to become one of the common real estate investments apart from the physical property investment with a long-term and cheaper capital for property ownership. Likewise, the continual expansion of the Islamic REIT market in Malaysia is making great financial motivation that expands the investment spectrum. Therefore, the need to review the Malaysia Islamic REIT framework to thrive and revitalize structures conforms to the shariah laws and the guideline issued by security commission of Malaysia. This inevitably means the behaviours and operation of sub-Islamic components operating under Islamic financial system need to observe within the rules and principles of shariah laws. Through model of business, investors can invest in an Islamic REIT in the without having to buy, manage, or finance property and income that produced through its various real estate investments.


Download data is not yet available.


Abdullah, D. V., & Chee, K. (2010). Islamic finance: Understanding its principles and practices. Marshall Cavendish International Asia Pte Ltd.

Abdul-Rahman, Y. (2014). The art of RF (Riba-Free) Islamic banking and finance: Tools and techniques for community-based banking. John Wiley & Sons.

Al-Aqar Healthcare REIT (2019). Annual report 2019. Retrieved from

Al-Salam REIT (2019). Annual report 2019. Retrieved from

Ang, J. (2013). Are Sukuk truly Islamic?. Available at SSRN 2432649.

Axis REIT (2019). Annual report 2019. Retrieved from
Elfakhani, S., & Sidani, Y. M. (2015). Uncertainty or ‘gharar’ in contracts under the Islamic ethical code. Ali, AJ Handbook of Research on Islamic Business, 126-131.

Ibrahim, M. F., Eng, O. S., & Parsa, A. (2009). International articles: Shariah property investment in Asia. Journal of Real Estate Literature, 17(2), 231-248.

KLCC REIT (2019). Annual report 2019. Retrieved from
Mohamad, S., Muhamad Sori, Z., & Shah, M. (2015). Shari'ah governance: Effectiveness of Shari'ah committees in Islamic banks in Malaysia. SSRN Electric Journal. doi: 10.2139/ssrn.2579174.

Naifar, N. (2016). Modeling dependence structure between stock market volatility and sukuk yields: A nonlinear study in the case of Saudi Arabia. Borsa Istanbul Review, 16(3), 157-166.

Obana, J. (2015). Islamic finance: Prohibitions and alternative financing in Islamic Finance. Muscat.

O'Neal, N. C. (2009). The development of Islamic finance in America: The future of Islamic real estate investment trusts. Real Property, Trust and Estate Law Journal, 279-297.

Pavlov, A., Steiner, E., & Wachter, S. (2018). The consequences of REIT index membership for return patterns. Real Estate Economics, 46(1), 210-250.

Saeed, M. (2011). The outlook for Islamic REITs as an investment vehicle. Lancaster University Management University.

Shariq, N. (2010). How Sukuk works: Introduction, structuring, and application of Sukuk bonds. Saudi Arabia. Islamic Resource Foundation

Visser, H. (2013). Islamic finance: Principles and practice. Edward Elgar Publishing.
How to Cite
Keng Soon, W. C. (2020). The Principles of Malaysia Islamic Real Estate Investment Trust: Contemporary Islamic Core Values. Journal of Contemporary Issues and Thought, 11(1), 96-106. Retrieved from