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Abu Dhabi, UAE - National Bank of Abu Dhabi (NBAD) signed an agreement with Abu Dhabi's Department of Municipal Affairs (DMA) granting the bank a licence to open escrow accounts for developers of off-plan property projects in Abu Dhabi.
Since the promulgation of Abu Dhabi's new Property Law - No. (3) of 2015, that took effect in January this year, the DMA has become Abu Dhabi's new property regulator. All projects and off-plan sales across the Abu Dhabi emirate will now be registered on a centralised database. Under the new regulation, developers selling off-plan units in Abu Dhabi or units that have not reached 70% completion will be required to set up an escrow account for the project. The proceeds from off-plan sales will be paid into this account and taken out in stages exclusively to fund the project's development.
Only banks that have signed an agreement with the DMA will be allowed to hold such Escrow accounts.
Mark Yassin NBAD's Co-Head of Wholesale Banking and Senior Managing Director of Global Banking said: "We are very excited to comply with this new Property Law that will provide security, stability and transparency in the market, increasing investors' confidence. By holding Escrow accounts NBAD supports Abu Dhabi's property sector and economic vision. We look forward to working with all the developers under the new legal environment and provide new opportunities for our customers."
Ramana Kumar, NBAD's Head of Global Transaction Banking Business & Product Management said: "The law requires those working in this sector to meet high professional standards. NBAD has a proven track record in providing escrow services. The escrow mechanism complements and brings together NBAD's strong proposition across Government Relationships, Real Estate and Retail for the benefit of all stakeholders"
NBAD's dedicated team under the umbrella of Global Transaction Banking is led by M.V. Varkey, Director of Escrow Management and James Thomson, Associate Director of Escrow Management.
The DMA's new responsibilities include implementing the law, issuing licences, controlling escrow accounts and cancelling real estate projects. The law also includes provisions regulating property development, buying, registration, brokerage, assessment, fees, security mortgage and joint-ownership management.
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About NBAD
NBAD has one of the largest networks in the UAE, with an expanding network of 112 branches and cash offices and more than 560 ATMs across the country. NBAD's growing international network consists of about 60 branches and offices in 17 countries stretching across five continents from the Far East to the Americas, giving it the largest global network among all UAE banks.
Since 2009, NBAD has been ranked consecutively as one of the World's 50 Safest Banks by the prestigious Global Finance magazine, which also named NBAD the Safest Bank in the Emerging Markets and the Middle East.
NBAD is rated senior long term/short term AA-/A-1+ by Standard & Poor's (S&P), Aa3/P1 by Moody's, AA-/F1+ by Fitch, A+ by Rating and Investment Information Inc (R&I) Japan, and AAA by RAM (Malaysia) , giving it one of the strongest combined rating of any Global financial institution.
A comprehensive financial institution, NBAD offers a range of banking services including retail, investment and Islamic banking. NBAD grows strategically toward its vision to be recognised as the World's Best Arab Bank.
For more information please visit our corporate webpage at: www.nbad.com.
For further enquiries, please contact:
Michael Miller Fadeela Khamis
Head of Investor, Media & Public Relations Manager, Media & Public Relations
Email: michael.miller@nbad.com Email: fadeela.mohamed@nbad.com
Tel: +971 2 611 2355 Tel: +971 2 611 1511
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© Press Release 2016
