MUSCAT: In an exclusive interview, Eng Khalid bin Nasser al Mahrouqi, Director-General of Real Estate Development at the Ministry of Housing and Urban Planning, highlighted the pivotal role of the escrow account system in boosting real estate investment in Oman. This system improves transparency and protects buyers' rights, making the market more appealing to both local and international investors.

Al Mahrouqi explained that the escrow account mandates developers to open a dedicated bank account for funds paid by buyers, ensuring that these funds are used exclusively for construction. This mechanism reduces project failure risks and boosts investor confidence in the sector. "This procedure guarantees proper use of buyers’ funds, mitigating the risk of failure and enhancing trust in the real estate market," he stated.

Emphasising the government’s commitment to regulating the market, Al Mahrouqi noted that the escrow account system helps stimulate foreign investments by reassuring investors that projects will be completed as per the approved plans. He added that such regulations foster market demand, which in turn drives economic growth.

To date, over 90 projects have been registered in the escrow account system, with expectations for this number to rise. The ministry is actively educating developers and investors about the system, offering benefits like bank financing and enhanced project promotion for registered developers.

Al Mahrouqi clarified that the number of unregistered developers is far fewer than previously reported, with only 40 unlicensed projects. He stressed the ministry’s focus on awareness campaigns and strict enforcement of regulations, including penalties for non-compliance. The ministry also supports developers through platforms like 'Tatweer', offering market insights, technical advice and marketing support to help them succeed.

In terms of fund disbursement, Al Mahrouqi explained that payments from the escrow account are made in stages based on approved documents, ensuring funds are spent on actual construction and not diverted. This system prevents financial manipulation and ensures that projects adhere to their timelines.

Lastly, Al Mahrouqi highlighted the importance of regulating real estate advertisements to protect buyers from fraudulent or unlicensed offers. The ministry’s ongoing efforts to refine real estate laws and provide support will continue to foster growth and stability in Oman's real estate sector, benefiting both local and foreign investors and supporting national economic development.

With these regulations in place, Al Mahrouqi anticipates an increase in real estate investments, positioning Oman as a competitive and secure destination for both local and international investors, further enhancing the country’s economic stability.

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