First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, has signed an escrow agreement with 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 the Emirate of Ras Al Khaimah.
The agreement was signed by HE Munther Mohammed Bin Shekar, Director-General of RAK Municipality and Manoj Menon, Senior Managing Director and Head of Global Transaction Banking at FAB.
The signing ceremony was held at the offices of RAK Municipality and also attended by Mohamed Ali, Managing Director and Head of Cash Management Solutions and Advisory, Varkey M.V., Executive Director and Head of Escrow Management at FAB, alongside other senior officials from the bank and RERA-RAK.
The agreement complies with the Amiri Decree No. 22 of 2008 and No. 10 of 2014 concerning Guarantee Accounts of Real Estate Development in the Emirate of Ras Al Khaimah, which was issued to implement new real estate escrow regulations, with the objective of protecting real estate buyers and sellers through registering all projects and off-plan sales in Ras Al Khaimah.
Commenting on the agreement, 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 focused 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.”
H.E. Munther Mohammed Bin Shekar, 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 line with the highest global standards, 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. FAB has been successfully managing escrow accounts in Dubai for almost a decade and in Abu Dhabi since January 2016 upon the announcement of the respective escrow laws. FAB also provides commercial escrow services primarily for substantial merger and acquisition deals.