Bank will act as a trustee for the account and safeguard owners’ interests and ensure compliance
Emirates NBD has signed an agreement with Dubai Land Department’s (DLD’s) Real Estate Regulatory Agency (RERA). The agreement sees the financial institution become an escrow agent to provide banking services for jointly owned properties’ accounts, in line with law no. (6) of 2019 for jointly managed properties.
According to a statement, Emirates NBD is the first bank in the UAE to partner with RERA following the issuance of the law in September 2019. The partnership aims to boost competitiveness and enhance investment in the real estate sector.
The new law applies to all major real estate development projects and jointly owned properties in Dubai. It covers the management of common areas and amenities and, following the introduction of the legislation, stakeholders were advised to take steps to ensure their operations are compliant with relevant regulations, the statement said.
“We are pleased to partner with Emirates NBD to consolidate Dubai’s position as the world’s premier real estate investment destination based on innovation, trust, and happiness. Through this agreement, DLD will create a register for jointly owned properties featuring all information related to the land owned by developers and real estate units meant for independent ownership. RERA and Emirates NBD will work closely to ensure that the Emirate remains a leading real estate destination where the rights and interests of investors are safeguarded and protected,” said Marwan Bin Ghalita, CEO of RERA.
The agreement is said to follow a successful pilot run, conducted by Emirates NBD, on setting up and managing the jointly owned properties’ accounts.
Ahmed Al Qassim, senior executive VP and group head, Corporate & Institutional Banking at Emirates NBD explained, “Emirates NBD has consistently played an active role in supporting the growth and development of the UAE real estate sector. We have an established track record of offering escrow account trustee services for Dubai-based real estate projects for several years. Emirates NBD has closely and extensively worked with DLD and RERA on various initiatives, and today’s agreement builds on our existing strong relationship. It reaffirms Emirates NBD’s standing as a preferred partner and service provider for public and private entities in the UAE.”