Regulation impact assessment of the real estate investment trust law in Uganda (collective investment schemes regulations 2017)

Abstract

The Real Estate Investment Trusts (REITs) Act, 2017 was enacted by the Parliament of Uganda to provide a legal framework for the establishment and operation of REITs in Uganda. The Act has the potential to promote investment in the real estate sector, which is a key driver of economic growth in Uganda. However, it is complex creating regulatory hurdles for REITs. The research conducted a Regulatory Impact Assessment (RIA) of the REITs act, 2017. The study assessed the impacts the regulations have had on implementation of REITs, what they ought to be and what they are in the context of Uganda, the Knowledge, Attitude, Practices (KAP Gap), Gap analysis and relationship of the KAP gap and stakeholder requirements. The study was carried out using mixed research methods. Data was collected through questionnaire, interviews with stakeholders, review of literature. The data was analyzed by Spss for inferential statistics, descriptive analysis, content analysis, narrative, stake holder analysis, gap analysis to realize the gaps such as limited scope of assets, lack of tax incentives, restrictions on foreign investment, The research portrayed that meeting the stakeholder requirements can help to close the KAP gap by ensuring that the Reit is structured and operated in a way that complies with regulatory requirements. The research has made a contribution to the understanding of the REITs act 2017. The results will be used to inform the development of policies and regulations for the real estate sector to create more feasible regulations to enable the efficient setting up of REITs in Uganda such as capacity building, consultations with stakeholders, regulatory oversight, legal reforms, increasing awareness about Reits.