IDB Joins Dubai Land Department's Authorised Banks as Escrow Account Trustee

The International Development Bank (IDB) has officially been included in the roster of authorized banks by the Dubai Land Department (DLD). This follows the signing of a significant agreement, designating the IDB as an escrow account trustee for real estate development projects within Dubai.

Key Figures at the Agreement Signing

The agreement was signed in a ceremony attended by His Excellency Eng. Marwan Ahmed Bin Ghalita, Director General of DLD, and Dr. Ziad Khalaf, Chairman of the Board of Directors at IDB. During the event, His Excellency Bin Ghalita highlighted the importance of strategic public-private partnerships in driving sustainable growth within the real estate sector, aligning with Dubai’s broader vision of creating an attractive investment environment.

Compliance with Regulatory Standards

The signing was carried out by Mohammed Al Bidwawi, Acting CEO of the Real Estate Regulatory Agency (RERA) at DLD, and Hani Idris, CEO of IDB after the bank met all necessary legal requirements for managing real estate escrow accounts.

Understanding Real Estate Escrow Accounts

An escrow account is a designated account where funds from buyers of off-plan properties or project financiers are deposited. This system ensures that the funds are used strictly for construction and development, safeguarding investors’ rights. The use of escrow accounts is mandatory for all real estate developers in Dubai to comply with regulatory standards.

Ensuring Transparency and Accountability

As part of the agreement, IDB will open a separate escrow account for each real estate development project. These accounts will be exclusively dedicated to the project’s financial management, ensuring transparency and proper allocation of funds according to regulatory requirements set by the Central Bank and the escrow trustee.

In this regard, Mohammed Al Bidwawi, Acting CEO of the Real Estate Regulatory Agency, said: “This step represents a continuation of DLD’s efforts to enhance transparency and safeguard investors’ rights. The real estate escrow account plays a pivotal role in regulating development processes and ensuring the rights of all stakeholders. We are committed to continuously strengthening our partnerships with financial institutions to improve customer experience and streamline procedures, thereby enhancing the attractiveness of the emirate’s real estate market.”

Dr Ziad Khalaf, Chairman of the Board of Directors for the International Development Bank said: “We take great pride in our partnership with Dubai Land Department, which represents a significant milestone in the bank’s journey to support the vital real estate sector. At the International Development Bank, we are committed to achieving the objectives of Dubai’s Economic Agenda D33 by providing innovative banking solutions that connect Iraqi and UAE markets, facilitating investment flows, and strengthening economic cooperation. We greatly emphasise supporting strategic projects focused on digital transformation and sustainable infrastructure. This aligns with our role in promoting foreign direct investment and supporting Dubai’s position as a global hub for trade and investment.”

DLD’s Commitment to Trust and Transparency

With this partnership, the Dubai Land Department reiterates its dedication to regulating the progress of real estate projects. The move further strengthens its focus on building trust and transparency within the real estate market, employing international best practices to protect investors and promote long-term, sustainable development.