ABK-UAE becomes first Kuwaiti and GCC bank to obtain ADREC licence for real estate escrow agent in Abu Dhabi

Strengthening its role as a trusted financial partner, Al Ahli Bank of Kuwait – United Arab Emirates (ABK-UAE) has been appointed to act as an Escrow Account Agent in Abu Dhabi by the Abu Dhabi Real Estate Centre (ADREC). With this appointment, the bank becomes the first Kuwaiti and GCC bank to obtain this licence, reinforcing the alignment between the bank’s strategic direction and the Abu Dhabi Government’s vision to provide a secure and well-regulated investment environment.

This appointment reflects the continued trust placed in ABK-UAE, driven by its disciplined governance framework, regulatory compliance, and continuous efforts to enhance its competitive position while diversifying its offerings and products for all customer segments in the UAE market at the highest service standards.

The licence further underscores the bank’s strong commitment to expanding its footprint in the rapidly growing real estate sector in the region. The service enables real estate developers to collect payments from buyers of off-plan units or project financiers and deposit them into designated, regulated escrow accounts at the bank, thereby safeguarding the interests of all parties and enhancing investor confidence in the real estate sector.

“Our partnership with ADREC is a testament to the commitment of ABK-UAE to operating in line with UAE’s regulatory framework and contributing responsibly to the market’s development,” said Giel-Jan M. Van Der Tol, Group Chief Executive Officer of ABK.

He added, “Our appointment as an escrow account agent aligns with our strategy to provide specialised banking solutions that support the UAE’s economic vision and further strengthen our presence within the UAE banking sector.”

He explained that this follows its appointment to provide the same service in Dubai in late 2024, as well as the launch of its mortgage loan product and the establishment of its Corporate Service Desk in the UAE, which offers multiple advantages to serve companies operating in the country. He noted that these steps position ABK among the licensed escrow account agents supporting the UAE’s dynamic real estate sector.

On his part, Engineer Sultan Al Memari, Acting Executive Director of ADREC, said, “The licensing of ABK-UAE as the first GCC bank to act as an escrow account agent in Abu Dhabi signals the increasing participation of regional institutions in the market. The expansion of licensed escrow agents is carefully managed to ensure that all entities meet the standards required to support off-plan developments and safeguard project funds. This supports broader regional and international participation, while maintaining a stable and well-managed transaction environment.”

Omar Wahby, Chief Executive Officer of ABK-UAE, added, “The introduction of escrow agent services in Abu Dhabi comes as part of our commitment to developing financial solutions that support urban development and meet investors’ aspirations, serving as a fundamental pillar in safeguarding the rights of all parties involved in real estate transactions.”

He noted that this service acts as a safeguard connecting developers and buyers, transforming the buying and selling process into a structured, secure experience aligned with the highest regulatory standards in the market.

Osama Al Hamadani, Deputy Chief Executive Officer and General Manager of Wholesale at ABK-UAE, also commented on the licence.

Al Hamadani added that, through this appointment, the bank will offer real estate developers a comprehensive range of benefits, including structured escrow administration, monitoring of cash flows and reporting, efficient audit coordination, controlled disbursement mechanism, and adherence to established regulatory standards.

He further highlighted the provision of a robust regulatory framework for developers and off-plan buyers, ensuring that financial disbursements are strictly linked to approved project expenses. He also revealed that the next phase will focus on launching of digital solutions for managing escrow accounts.