Dubai Land Department (DLD) yesterday signed an escrow account agreement with National Bank of Dubai (NBD).
The decision to establish an escrow framework for property developers further enhances the confidence of investors and end users in the long-term stability of the real estate sector in Dubai. Proactive steps to regulate the real estate industry underlines Dubai's committment to ensure the highest of standards are adhered to while raising the bar of the industry and encouraging both domestic and international investment.
The signing ceremony took place in the offices of DLD, where Juma'a Bin Humaidan, Assistant Director General, Dubai Land Department and Rajesh Thapar, Group Head of Corporate & Institutional Banking, National Bank of Dubai signed the agreement.
Through this agreement, NBD has been appointed as an official escrow account bank by the DLD. The signing appoints NBD as one of the few banks in Dubai to provide escrow accounts designed to protect consumer payments on new and in the pipeline properties in Dubai.
Under the recently promulgated Law No. 8, property developers in Dubai must place project receivables in escrow, or trust, until predetermined development milestones are achieved and independently verified by the escrow account bank. These escrow accounts are regulated by the Dubai Land Department.
NBD's Retail Banking is ranked amongst the top 3 mortgage finance providers in the UAE, offering a suite of mortgage finance solutions and a reputed panel of 14 developers to choose from. This appointment will complement NBD's leading position in the mortgage finance market, adding value both to its customers and its property development partners.
