Business | Property
DIB unveils region's first escrow trust account service
Dubai Islamic Bank (DIB) on Wednesday announced the launch of the Al Islami Escrow Account, the first escrow 'trust' account service in the region designed specifically for real estate developers.
- Staff Report
- Published: 22:58 July 25, 2007
- Image Credit: Devadasan/Gulf News
- With Dubai's real estate sector growing exponentially, the government has introduced new legislation to regulate the market.
Dubai: Dubai Islamic Bank (DIB) yesterday announced the launch of the Al Islami Escrow Account, the first escrow 'trust' account service in the region designed specifically for real estate developers.
The new service will contribute to further protecting investors and enhancing confidence in the UAE's real estate sector.
The announcement was made during a ceremony where DIB and the Dubai Lands Department signed an agreement governing the general trust account conditions for real estate developments.
The agreement was signed by Sultan Butti Bin Mijrin, Director General of Dubai's Land Department, and Sa'ad Abdul Razak, CEO of DIB Group.
The Al Islami Escrow Account service will help property developers manage their project receivables in accordance with the new regulations of Law No. 8 pertaining to the trust accounts for real estate developments in Dubai, issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Guidance
The bank will provide guidance on the completion of the Land Department's formalities and requirements. The developers will benefit from the comprehensive information systems of the bank that will provide details on the status of payments received of the various units in their buildings.
Bin Mijrin said in a statement, "This agreement follows the issuance of Law No. 8, which reflects the level of maturity that the real estate sector has now achieved. The new law will enhance confidence in this vital sector and develop a strong basis for regulating the process of selling residential units and will protect the rights of buyers.
"Our agreement with DIB complements the regulations stated in Law No. 8 based on its considerable experience and significant role as a leading financial institution in the area of real estate development," he added.
Sa'ad Abdul Razak said: "We are delighted to announce the launch of this innovative product, which reflects DIB's premier position in the real estate development area. This experience provides us with the advantage of being the first bank to offer this trust account service across the region under the new law.
This product reflects DIB's vision to offer a host of tailor-made, value-added services to property developers, he said.
Developers will be able to benefit from our expertise in managing their project receivables. The service will offer guidance on completion of Lands Department formalities, account opening services, as well as balance management services, he added.
Additional facilities
"The escrow product will also provide comprehensive services wherein developers can benefit from additional services offered by DIB, including managing contracts to sell residential units, as well as a detailed status of units in the customers' buildings, unit payments received, overdue payments at unit level and other services.
A dedicated customer service centre will be a window to the know-how, services and expertise that DIB offers, allowing developers' requirements to be addressed in a prompt and efficient manner.
DIB will also have an experienced team of in-house engineers to provide payment certificate verification services as per Land Department requirements," he concluded.
DIB, established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices. The bank has recently announced the breaking of another world record by raising $3.52 billion sukuk for the Nakheel Group.
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