EIGHTClouds Launches $300M+ UAE Real Estate Alternative Fund

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EIGHTClouds debuts $300M+ UAE real estate alternative fund.

EIGHTClouds has launched an open-ended real estate fund targeting more than US$300 million in committed capital across Dubai and the UAE.
The fund aims to build a gross asset value exceeding US$600 million within a decade, investing in income-generating residential assets.
Investors receive 100% of portfolio free cash flow as quarterly dividends, plus 80% of realised capital gains on asset disposals.
The strategy targets net yields of 9% or more for long-term rentals and above 18% for premium short-term residential units.
Qualified investors can access the fund with a minimum commitment of US$50,000, with an annual January redemption window.
The fund's thesis is underpinned by Dubai's 4.9% GDP growth and 5.4% population expansion in FY25, alongside the Dubai 2040 Urban Master Plan.

Open-Ended Fund Brings Institutional Structure to UAE Residential Real Estate

The fund enters a UAE investment landscape shaped by multiple regulatory frameworks. Onshore real estate vehicles fall under the Securities and Commodities Authority (SCA), the UAE's main financial markets regulator. Products domiciled in the Dubai International Financial Centre (DIFC) are overseen by the Dubai Financial Services Authority (DFSA). EIGHTClouds has not publicly disclosed the fund's specific regulatory domicile, though its focus on qualified investors - those meeting defined eligibility thresholds - is consistent with standard practice for alternative real estate vehicles in the region.

The fund's investment thesis draws directly on Dubai's long-term structural policy agenda. The Dubai 2040 Urban Master Plan is reshaping the city's growth corridors, infrastructure, and land-use priorities, creating a decade-long demand runway for quality residential assets. These tailwinds are drawing increasing interest from global institutional capital that has historically favoured property markets in Europe or Asia.

Fund Structure and Key Economic Terms

EIGHTClouds has launched an open-ended real estate fund targeting more than US$300 million in committed capital. The vehicle aims to build a gross asset value (GAV - the total undiscounted value of all assets held) exceeding US$600 million over its first decade. Its open-ended structure means there is no fixed end date, and investors access liquidity through an annual redemption window rather than waiting for a defined wind-down.

The fund distributes 100% of free cash flow to investors as quarterly dividends, providing a regular income stream from the underlying portfolio. When assets are sold, investors receive 80% of any realised capital gains, with the manager retaining the remaining 20%. Redemptions are priced at mark-to-market valuations - meaning unit prices reflect the portfolio's current assessed value rather than its original acquisition cost.

Investment Strategy and Yield Targets

The fund targets income-generating residential assets across Dubai and the wider UAE. Portfolio construction centres on 1,000 units spread across more than 15 high-demand residential corridors, diversifying exposure by location, tenant profile, and rental demand cycle. Acquisitions focus on communities with proven liquidity, sustained tenant demand, and resilience across economic cycles.

Yield Targets by Asset Type

Long-term rental properties in established, high-demand communities: net yields targeting 9% or more.
Premium short-term units in prime locations - such as serviced or high-end apartments: yields targeting above 18%.

By blending these two asset categories, EIGHTClouds aims to generate a return profile well above typical developed-market residential benchmarks. Value creation relies on active management - using disciplined leverage, asset refurbishment, and operational improvements to boost occupancy and rental income - rather than passive ownership.

Dubai Market Fundamentals Underpin the Thesis

EIGHTClouds frames the fund as a direct response to Dubai's strong residential market fundamentals. Dubai's GDP grew at 4.9% in FY25, while the city's population expanded by approximately 5.4%, reaching more than 4.0 million residents, according to the firm's fund materials. This demographic growth has driven consistent rental absorption across the city's most active districts.

Long-term policy visibility strengthens the investment case. The Dubai 2040 Urban Master Plan is redesigning the city's growth corridors and infrastructure priorities, while the Dubai Economic Agenda "D33" targets higher productivity and economic diversification. EIGHTClouds argues that these programmes create a clear ten-year demand pipeline for quality residential assets.

Mark Aitchison, Founder and Chief Executive Officer of EIGHTClouds, described Dubai as "one of the strongest income markets globally." He cited international capital inflows, large-scale infrastructure commitments, and structural reforms as key drivers of durable long-term residential demand, according to Pulse2.

Access Terms and Target Investors

The fund is open to qualified investors - those who meet defined eligibility thresholds under the applicable regulatory framework - rather than the general retail market. Prospective investors must complete eligibility verification and KYC (know your customer - the standard process of verifying investor identity and suitability) checks before receiving the full information memorandum and subscription details.

The minimum commitment is US$50,000. Investors can redeem units annually each January, priced on an independent mark-to-market basis. Oliver Wall, Director of Investments at EIGHTClouds, said the fund enables a broader pool of investors to access a professionally managed residential strategy. He cited institutional underwriting and transparent valuation as key differentiators, according to PE Insights.

EIGHTClouds: Platform and Track Record

EIGHTClouds is a Dubai-based boutique alternative investment firm active across private equity, real estate, and private credit in the UAE and GCC. The firm previously raised US$20 million in just 11 months - well ahead of its original 24-month target - deploying capital into consumer sectors including food and beverage and hospitality.

The new real estate fund formalises the firm's dedicated residential property capability at institutional scale. EIGHTClouds positions it as a response to a historically fragmented, individual-investor-driven market. By applying consistent underwriting, active management, and transparent reporting, the firm aims to bring a more institutional framework to UAE residential real estate.