DIB named escrow account agent by Ras Al Khaimah government
February 01, 2009
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Client(s):
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Dubai Islamic Bank (DIB)
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Dubai Islamic Bank has been appointed as an official escrow account agent by the Ras Al Khaimah Government through Ras Al Khaimah Investment Authority (RAKIA).
The agreement was signed recently by Mohammed Al Sharif, Chief Of Finance, Dubai Islamic Bank and the Chief Executive Officer of Ras Al Khaimah Investment Authority at a ceremony held in Rakeen, the real estate development arm of the Ras Al Khaimah Government.
Under the Amiri Decree No. 22 of 2008 for the creation of the Guarantee Accounts, promulgated in July 2008, property developers in Ras Al Khaimah must place project receivables in escrow, or trust, until predetermined milestones are achieved.
The Chief Executive Officer of Ras Al Khaimah Investment Authority said: “We are pleased to appoint Dubai Islamic Bank as an official escrow account agent for projects in RAK. As a leading escrow provider in the UAE, DIB has a proven track record of well-managed trust accounts. We are confident that both property investors and developers will benefit immensely from DIB’s vast experience and expertise.”
The escrow accounts are regulated by RAKIA and developers wishing to sell off-plan units in real estate development projects in the emirate must apply to RAKIA for approval to open escrow accounts.
Mohamed Al Sharif said: “This agreement with the RAKIA is reflective of the RAK government’s confidence in the services of DIB. Over the past few years, we have worked closely with developers on projects of various scale and designed for a variety of end users. During this period, we have established efficient processes and systems, which enable us to work smoothly with the escrow structure.”