An escrow account law, similar to one announced by the Dubai Government, is on the anvil in Ajman, people familiar with the plan said.
"We do plan to announce an escrow account law by the year-end or early next year," a person, who did not want to be identified, said.
In July, Dubai unveiled law No 8 concerning guarantee accounts of real estate developments. The industry and investors welcomed the move, as it instilled confidence into the booming sector and assured safeguards from "rogue" developers.
"We laud all the actions and regulations that protect the investors and keeps the mar ket reputation intact," said Marwan Bakir, Chief Executive Officer, Mazyood Giga International.
Earlier this year, Ajman saw a spurt in real estate developments with estimates pointing to over Dh20-25 billion worth of projects being launched in the emirate. In January, the government announced the Dh50bn Al Zorah project.
Several real estate developers such as R Holdings, Tameer, National Centre for Real Investment and Khoie Properties have been selling their projects in Ajman as freehold properties.
Earlier, developers in Dubai had adopted a similar strategy, which eventually resulted in a real estate boom.
Ajman is not emulating the growth model of any other emirate, rather is framing its own growth roadmap, Ajman Crown Prince Sheikh Ammar bin Humaid Al Nuaimi had told Emirates Today.
"We are not following any other emirate. We are studying the market in other emirates and learning from them." He rejected competing with Dubai or Abu Dhabi, saying: "We aren't competing, but are complementing them.
Though we are targeting the same people, we offer them more choice. It is for the people to decide.
By Parag Deulgaonkar
© Emirates Today 2007
