An escrow agreement has been signed by First Abu Dhabi Bank and the Real Estate Regulatory Administration in Ras Al Khaimah (RERA-RAK).
The agreement allows the bank to open and manage escrow accounts for developers of off-plan property projects in Ras Al Khaimah, and complies with Amiri Decree No. 22 of 2008 and No. 10 of 2014, concerning guarantee accounts of real estate development in the emirate.
Commenting on the agreement, senior managing director and head of global transaction banking at First Abu Dhabi Bank, Manoj Menon, said: "We are pleased to sign this escrow agreement, which will provide security, stability, and transparency in the real estate market, increasing investor confidence.
“FAB’s decade of experience in escrow services enables us to provide focussed support to the property sector, which will, in turn, promote the economic vision of Ras Al Khaimah.
“We look forward to working closely with developers and investors across the emirate and providing new opportunities for our valued customers," he added.
Meanwhile, Munther Mohammed Bin Shekar, director-general of RAK Municipality, said: "The laws regulating the real estate market in Ras Al Khaimah are a direct result of the efforts of the Real Estate Regulatory Administration to standardise the real estate sector [...], in addition to providing a legislative umbrella to protect investors and stakeholders.
“Our efforts are aimed at attracting investments and enhancing the economic development and sustainable growth of the emirate, and our partnership with First Abu Dhabi Bank will help us in achieving our long-term goals."
FAB has a dedicated escrow management team under the umbrella of its global transaction banking business, and has been managing escrow accounts in Dubai for almost a decade and in Abu Dhabi since January 2016, according to the state-run Emirates News Agency (WAM).