Ajman Real Estate Regulatory Agency and Dubai Islamic Bank ink escrow account agreement
Ajman Real Estate Regulatory Agency has signed the trust account (escrow) agreement with Dubai Islamic Bank, pursuant to the provisions of Amiri Decree No. 8 of 2008, as amended by Decree 11.12 of 2008, which requires all real estate companies to open trust accounts for their projects in the banks certified by ARRA.
Commenting on the event, ARRA Director General, Omar Barghouti, said 'Signing of the escrow account agreement comes in line with the approach of His Highness Sheikh Humaid Bin Rashid Al Nuaimi, Member of the Supreme Council and Ruler of Ajman, to establish the basic rules of the real estate market in the emirate of Ajman to protect rights and monies of real estate-related parties in the property sector of the Emirate, and to revise the legislation and laws conducive to create appropriate investment climate in the emirate where confidence and security prevail.'
'By putting these legislations and laws in force, Ajman is anticipated to occupy an advanced position as one of the region's best investment destinations.' He added.
Dubai Islamic Bank ARRA Chief said:
'Signing the trust account contract with top-ranked DIB came as a result of several considerations including the exceptional Sharia-Islamic compatible banking services the bank provides, as well as the wealth of experience the Bank has in the management of real estate trust accounts.'
Commenting on the global economic downturn and its impact on the real estate sector in Ajman Al Barghouti said,
'Despite the repercussion of the global financial crisis that has left tangible mark on different sectors in the global markets, specifically the real estate sector, the United Arab Emirates, represented by its leadership has managed to contain the effects of the global meltdown and taken series of practical measures, including pumping over a Dhs100bn to be almost the first country to take such action in order to support its financial sector and to provide the necessary liquidity to local banks to play their primary roles including providing wide-ranging financial services as well as funding of real estate projects.'
'I am quite confident that the property sector in the United Arab Emirates is recovering and in a takeoff position.' Al Barguthi pointed out that the wise policy of His Highness Sheikh Humaid Bin Rashid Al-Nuaimi, Member of the Supreme Council and the Ruler of the Emirate of Ajman, helped boost the economic growth of Ajman.'
Ayman Adel Kamal, Chief Investments and Real Estate of Dubai Islamic Bank was delighted to sign the agreement with ARRA, 'We are pleased to sign the escrow account agreement with the Ajman Real Estate Regulatory Agency. We are very appreciative of Ajman Government's steps to help regulate the real estate sector through the development and enactment of legislation and are equally confident that our experience in providing escrow account services will assist the Ajman Government in achieving its objectives.'
He also said, 'Dubai Islamic Bank has forged a leading position in the provision of escrow account services, which protect purchasers' investments in the real estate projects'.
Under the Ajman Trust Account Law, all developers will be required to deposit all amounts received from buyers in the escrow accounts until the completion of construction. Ajman Real Estate Regulatory Agency in coordination with the Dubai Islamic Bank will make sure that trust account rule is effectively applied.