UAE-based Tourism Development & Investment Company (TDIC) said it has signed an escrow accounts agreement with Abu Dhabi Commercial Bank (ADCB) for its upcoming projects.

The master developer of major tourism, cultural and residential destinations in Abu Dhabi, TDIC said the deal highlights TDIC’s commitment to the new Abu Dhabi law for the regulation of the real estate sector.

Under the new rule, the property developer must set up a project escrow account prior to its getting approval to commence the off-plan sale of units.

It provides protection for customers of off-plan developers by ensuring that funds paid for the purchase of units are not accessible by the developer until such time an acceptable level of progress in the construction of the project has been achieved.  

CEO Sufian H. Al Marzooqi said: "TDIC welcomes the rules and regulations of the new property law which serve to safeguard the interests of the investors and developers in the industry."

"We consider that the law further enhances the confidence and transparency in the market as well as strengthens security for local, regional and international investors. It is without a doubt a very positive step in the right direction," he stated.

ADCB Group chief executive Ala'a Eraiqat said the duo's engagement around the escrow account laws in Abu Dhabi is a very important milestone since the announcements of the new regulations in the capital.

"We are pleased with TDIC’s decision to bank their escrow accounts with us and this comes based on the lender's extensive track record with the real estate escrow operations and our commitment to provide the service excellence needed in such a delicate and heavily regulated industry," he added.-TradeArabia News Service