Ras Al Khaimah Investment Authority (Rakia) said the newly-established Real Estate Regulatory Agency (Rera) will oversee the implementation of the escrow account law for freehold projects under the investment authority.

The Rakia Rera was established by an Emiri Decree as part of the emirate's efforts to safeguard investments and protect the interests of the real estate investors.

Several property developers have already registered their projects with Rakia Rera, which now monitors Rakia-supervised real estate developments with a collective value of Dh6 billion ($1.63 billion).

The Rak Rera has created a new layer of protection for real estate investors in Ras Al Khaimah, said a top official of the government body responsible for the socioeconomic growth of RAK.

Developers may only register with Rakia Rera when the project's concept design has been approved, which will allow them to open an escrow account and start selling properties, explained Yahia Kambris, general manager of Rakia Rera.

Rakia Rera will also oversee the proper conduct of construction by sending out a team of engineers to inspect projects and make sure that the emirate's construction policy and the key points in the contract are strictly followed.

'The escrow account has been implemented to prevent mishandling of construction funds and ensure that investors' money is spent according to the master plan of the project. In this regard, Rakia Rera has been established to strictly implement the emirate's escrow account law for projects under Rakia's supervision,' Kambris stated.
 
'The establishment of the new real estate watchdog is an important step in our efforts to safeguard and protect the interest of investors and reinforce the reputation of Ras Al Khaimah as an attractive and practical investment destination in the region,' he added.

Among the developers who have registered with Rakia Rera include Select Group, the developer of Pacific; Manazil Real Estate, which is developing Marbella Bay; Pure Real Estate, developer of Blue Mirage; Stallion Properties, which is developing Santorini; and e-myproperty, developer of Bab Al Badr.

Yes Properties, developer of The Quay, is now completing the registration process and will soon open an escrow account.

Several banks, including Badr Al Islami-Mashreq, Bank of Baroda, Commercial Bank of Dubai, Abu Dhabi Commercial Bank and Dubai Islamic Bank, have also signed an agreement with RERA to offer escrow accounts, Kambris said.-TradeArabia News Service