Dubai Land Department signs escrow account agreement with National Bank of Dubai
The National Bank of Dubai (NBD) will be the only bank in the UAE to offer Escrow Accounts both within conventional and Islamic banking, thereby maximizing choice for customers. The new laws and agreements don’t just benefit consumers; developers using NBD Online will have access to account management and have a dedicated team on hand, designed to support the operations for these account services.
The NBD is supporting Government initiatives to raise the standard of the Dubai real estate industry and ensure the continued prosperity of Dubai’s property market. Under the new Law No. 8, property developers in Dubai must place project funds in escrow, or trust, until milestones in construction are achieved, then independently verified by the escrow account bank. These escrow accounts will be regulated by the Dubai Land Department.
New regulations will establish an escrow framework for property developers and greatly enhance the confidence of investors and owners in the long-term stability of the Dubai real estate sector. The Dubai Land Department has taken proactive steps to regulate the real estate industry to ensure the highest of standards are adhered to while raising the bar of the industry and encouraging both domestic and international investment.
