01/10/2025
Jabal REIF Acquires Prime Office Property and achieves Sharia Compliance
Jabal REIF Acquires Prime Office Property and achieves Sharia Compliance
Muscat – 30 September 2025 – Jabal Real Estate Investment Fund (REIF), a closed-ended listed fund focusing on commercial properties, is proud to announce two significant milestones: the successful acquisition of usufruct rights over Capital One, a recently built, high-quality office property located in the increasingly vibrant district of Azaiba, Muscat, and the Fund’s recent certification as a fully Sharia-compliant investment vehicle.
The acquisition reinforces REIF’s strategy to deliver sustainable growth and attractive long-term returns, while providing investors with access to investment opportunities aligned with Islamic principles.
Capital One features approximately 6,000 sqm of gross leasable area (GLA) and is distinguished by its prime location, modern architecture, and high-profile tenants. The property comprises premium office space on the first and second floors, complemented by high-visibility retail premises on the ground floor.
The building is currently fully leased, with MB Group, through its subsidiaries, occupying over 60% of the total space, ensuring stable and recurring rental income.
The transaction was finalized on 28 September 2025, representing a net investment of OMR 4.6 million. The acquisition was financed through a combination of Islamic financing and the Fund’s available cash resources.
“This acquisition marks a significant step forward for our Fund and its investors,” said Mr. Abdulaziz Al Mahruqi, Board Member of REIF. “The asset’s strong fundamentals are expected to generate sustainable, long-term returns, further strengthening our portfolio.”
“Becoming Sharia-compliant opens the door to a broader investor base seeking ethical and transparent real estate opportunities,” added Mr. Issa Al Battashi, Managing Director of REIF’s investment manager, Jabal Asset Management LLC, and Board Member of REIF. “Coupled with this high-quality acquisition, we are well-positioned to deliver consistent value and growth.”
The investment manager highlighted the positive growth momentum in Oman’s real estate market, a trend affirmed by leading consultants and industry experts. This growth is underpinned by the government’s Vision 2040 initiatives and ongoing economic diversification efforts aimed at fostering a more dynamic and sustainable economy.
According to the H1 2025 Market Report by Hamptons, absorption of Grade A office space in Muscat increased by 7% year-on-year, reflecting rising demand for premium office segments. Furthermore, with moderate supply levels in core areas, yields for quality office buildings have remained stable, demonstrating strong market fundamentals.
With interest rates on a downward trend, the real estate market is becoming increasingly attractive to investors seeking stable, income-generating assets. In Oman, where fundamentals remain resilient and government-led initiatives are driving growth, these factors create a favorable environment for strategic acquisitions and investment into real estate sector.
With this acquisition and its successful transition to Sharia compliance, REIF is well-positioned to capitalize on Oman’s evolving real estate landscape. The Fund will continue to grow and diversify its portfolio through targeted, value-accretive acquisitions in strategically important locations, while remaining fully committed to delivering sustainable returns and long-term growth potential for its investors.
About Jabal Asset Management
Jabal Asset Management (JAM) is a Muscat-based Emerging Markets specialist investment manager and broker licensed by the Financial Services Authority of Oman. JAM offers seven investment funds, discretionary mandates, and bespoke solutions across Oman, the GCC, China, India, and global emerging markets, spanning equities, fixed income, real estate, and private equity. JAM’s flagship digital platform J Invest Mobile App seamlessly integrates brokerage and asset management, enabling clients to open accounts, onboard digitally, and invest in global emerging markets with ease.
For more information, please contact Reif@jabal.om or info@jabal.om
