First Gulf Bank (FGB), one of the UAE's leading financial institutions based in Abu Dhabi, has signed a real estate development trust account agreement with the Dubai Land Department (DLD) - the real estate title registry - which approves the bank to open and manage escrow accounts for the department's registered property developers.
The agreement was signed in Dubai at DLD offices between His Excellency Sultan Butti Bin Mijrin, General Manager of the Dubai Land Department and Hamad Al Ghafli, Head of National Housing Loans, FGB.
Escrow accounts operated by FGB will be regulated by the Real Estate Regulatory Authority (RERA), which now licenses over 400 developers active in the Dubai market, and which is responsible for implementing the new escrow account law.
"The new RERA rules are a major step forward in the maturing of the Dubai market," said Al Ghafli. "The rules protect the interests of both buyers and developers with investors safe in the knowledge that their funds are correctly held on deposit by a reputable financial institution, such as First Gulf Bank."
FGB has built a credible reputation within the UAE's real estate segment with a range of finance solutions for both developers and investors.
"The agreement with the Land Department reflects FGB's commitment to serving the UAE's evolving real estate industry which is now a significant economic diversification driver," said Al Ghafli. "We will work hand-in-hand with developers, to ensure their escrow accounts perform to the maximum and deliver the security their investors require." Al Ghafli concluded.
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© Press Release 2008
