In Dubai, the management of real estate escrow accounts is entrusted to Account Trustees, who are typically banks or financial institutions approved by the Dubai Land Department (DLD). These trustees play a crucial role in ensuring that funds allocated for real estate development are used appropriately and in compliance with regulatory standards.
Qualifications and Approval Process:
Licensing: To serve as an Account Trustee, a bank or financial institution must be licensed by the Central Bank of the UAE.
DLD Approval: Prospective trustees are required to sign an agreement with the DLD and pay an annual approval fee. They must also provide a list of employees and contact information, ensuring transparency and accountability.
Responsibilities of Account Trustees:
Fund Management: Trustees are responsible for opening and managing escrow accounts dedicated exclusively to specific real estate projects. This ensures that the funds are utilized solely for the intended development.
Regular Reporting: They must provide the DLD with regular statements detailing the revenue and expenditure of each escrow account. This allows for continuous monitoring and ensures compliance with all regulations.
Compliance Assurance: Trustees are obligated to adhere to all legislation and regulations regarding the ownership of jointly owned properties in Dubai, as well as any executive regulations and circulars issued by the DLD and the Real Estate Regulatory Agency (RERA).
Approved Account Trustees:
The DLD maintains a list of approved escrow account trustees, which includes reputable banks and financial institutions authorized to manage these accounts. Some of the approved trustees are:
Abu Dhabi Commercial Bank (ADCB)
Dubai Islamic Bank (DIB)
Emirates NBD
Mashreq Bank
First Abu Dhabi Bank (FAB)
For a comprehensive list and contact details of all approved trustees, you can refer to the DLD's official Certified Escrow Agents page.
By appointing qualified and approved Account Trustees, Dubai ensures that real estate development funds are managed with integrity, thereby protecting the interests of investors and maintaining the market's credibility.
