Dubai appoints IDB as trustee to guarantee real estate development

Follow-up - WAA

Dubai Land Department appointed the International Development Bank as the trustee of the real estate development guarantee account on Wednesday.

The department stated in a statement followed by the Iraqi News Agency (INA), that "the International Development Bank - UAE Branch" has joined the list of banks approved by the Dubai Land and Property Department, following the signing of an agreement under which the bank was appointed as a trustee of the escrow account for real estate development projects in the emirate," noting that "the agreement was signed in the presence of Marwan Ahmed bin Ghalita, Director General of the Dubai Land and Property Department, and Ziad Khalaf, Chairman of the Board of Directors of the International Development Bank."

The department added that “the agreement was signed by Mohammed Ali Al Badawi, Acting CEO of the Real Estate Regulatory Agency of Dubai Land Department, and Hani Idris, CEO of the International Development Bank, for meeting all the legal requirements approved for managing real estate escrow accounts,” indicating that “the real estate escrow account is the account designated for depositing the amounts collected from buyers of real estate units sold off-plan or from project financiers, and aims to regulate construction and building operations and guarantee the rights of investors, as all real estate developers in Dubai are required to open escrow accounts to manage real estate projects.”

The department explained that “According to the agreement, the International Development Bank is committed to opening an independent escrow account for each real estate development project, allocated exclusively for the purposes of establishing the real estate project, to ensure the management of financial resources in a transparent and organized manner, in line with the systems and procedures followed by the account custodian and the Central Bank.”

According to the statement, Bin Ghalita stressed the "importance of strategic partnerships between the public and private sectors in enhancing the sustainable development process in the real estate sector, in line with Dubai's vision to develop a leading and attractive investment environment."

He pointed out that "we pay great attention to supporting strategic projects that focus on digital transformation and sustainable infrastructure. This is based on our role in promoting foreign direct investment and supporting Dubai in its journey as a global hub for trade and investment."

Through this agreement, the Dubai Land Department affirmed its “commitment to regulating the progress of real estate projects, and renewed its keenness to establish trust and transparency in the real estate sector, by applying the best international practices to ensure the protection of investors and stimulate sustainable development.”

In this regard, Mohammed Ali Al Badawi, Acting CEO of the Real Estate Regulatory Agency, said: “This step represents an extension of the department’s efforts to enhance transparency and protect investors’ rights, as the real estate escrow account contributes to regulating development operations and ensuring the rights of all parties,” indicating, “We are also constantly working to strengthen our partnerships with financial institutions to improve the customer experience and facilitate procedures in a way that enhances the attractiveness of the real estate market in the emirate.”