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Emirates NBD, a leading banking group in the region, has signed an agreement with Dubai Land Department's (DLD's) Real Estate Regulatory Agency (RERA), to become an escrow agent to provide banking services for jointly owned properties accounts in accordance with the recently issued law no. (6) of 2019 for jointly managed properties.
Emirates NBD is the first bank in the UAE to partner with RERA following the issuance of the new law in September 2019, and 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, and covers the management of common areas and amenities. Following the introduction of the legislation, several groups of stakeholders, such as developers, community management companies, hotel operators, insurers, investors, and owners, are advised to take steps to ensure their operations are compliant with relevant regulations.
Under the agreement, Emirates NBD will act as a trustee for the account and provide banking services with the aim to safeguard owners' interests and ensure compliance with real estate procedures and regulations. The agreement follows a successful pilot run, conducted by Emirates NBD, on setting up and managing the jointly owned properties accounts.
HE Eng. Marwan Bin Ghalita, CEO of RERA, 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."
Commenting on the announcement, Ahmed Al Qassim, Senior Executive Vice President and Group Head, Corporate & Institutional Banking at Emirates NBD said: "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.
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