The first real estate trust account in Dubai has been opened by Al Manal Development with Badr Al Islami bank.

Investor payments in Al Manal Development’s new La Vista Residence project at Dubai Silicon Oasis are being deposited with Badr Al Islami, the Islamic Banking Division of Mashreq PSC.

Juma Bin Humedan, assistant general manager of Dubai Land Department; Juma Al Ghurair, chairman of Al Manal Development; and Mubashar Khokhar, CEO of Badr Al Islami Bank, marked the occasion with a ceremony at the Dubai Land Department.

The new property law, established to protect the rights of investors, requires projects to have an Escrow Account at one of the banks approved by the Dubai Land Department.

A trust account is a special bank account that holds the funds from “off plan” sales in trust for the investors and releases them only when agreed milestones are reached. This means investor funds will only be used to complete the project.

Al Manal Development’s commitment to the new law and their prompt implementation has been welcomed by the CEO of the Real Estate Regulating Agency, Marwan Bin Gletah, who says they are a good role model for other property developers in Dubai.

 “This law just implemented by Al Manal Development is a critical part of winning international credibility and all parts of the property development sector have a positive role to play in implementing this law” he said. “It sends a clear signal to all property investors that Dubai will do all it can to ensure their investments here are protected.”

Al Manal Development Chairman Juma Al Ghurair said the company had taken this initiative to demonstrate its commitment to protect its clients’ investments and show that it is a company that can be trusted. – TradeArabia News Service