First real estate financier to be given official designation
Tamweel PJSC, the largest provider of real estate finance in the UAE, has been appointed as an official escrow account agent by the Dubai Land Department, the first time a mortgage provider has received the designation.
Working with its large pool of approved partner developers, Tamweel will seek to convert more than 75 real estate developers' current projects in the emirate into an authorised escrow structure.
Under the recently promulgated Law No. 8, property developers in Dubai must place project receivables in escrow, or trust, until predetermined development milestones are achieved. These escrow accounts are regulated by the newly created Real Estate Regulatory Agency (RERA), a government entity operating under the umbrella of the Dubai Land Department.
Adel Al Shirawi, Chief Executive Officer of Tamweel, said: "This agreement with the Dubai Land Department represents a significant vote of confidence in the professionalism and experience of Tamweel. Over the past three and a half years, we have worked closely with developers on projects of various scale and designed for a variety of end users. During this period, we have established transparent and efficient processes for project approvals that are similar in nature to current escrow account procedures, enabling us to easily integrate these procedures into our system." He continued: "The decision by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to establish an escrow framework for property developers will greatly enhance the confidence of investors and end users in the long-term stability of the real estate sector in Dubai. Further, this process will mitigate the risk of delivery delays, along with any corresponding charges to investors.
Tamweel is proud to be a pioneer in this area, having already implemented a system that guarantees that any charges related to delivery delays are not passed along to end users, as emphasised by the new escrow law." He concluded: "By encouraging developers to place investors' assets in trust until the completion and delivery of new projects, this landmark legislation will contribute to even stronger ratings of the emirate's real estate sector by international ratings agencies. This will make for enhanced confidence in the sector, which will have knock-on benefits for the Dubai economy as a whole." Sultan Butti Bin Mejren, Director General of Dubai Land Department, said: "We are pleased that Tamweel has become a trust account agent. There is no doubt that the company is capable of performing this important role.
It has built solid relationships with both developers and the Land Department, and it shares with us the common goal of serving the real estate market while strengthening the trust of clients and investors." Marwan Bin Ghalita, Chief Executive Officer of RERA, said: "By approving a trust manager for one of the leading institutes in the market, we are ensuring that the Dubai real estate market continues to grow and provide deeper levels of confidence and security to investors in all the emirate's projects." He added: "Tamweel is an important stakeholder in our company, since it plays a very strong role in real estate finance. Through our agreement today, we will work with Tamweel towards establishing a solid date for all developing projects." Source
Working with its large pool of approved partner developers, Tamweel will seek to convert more than 75 real estate developers' current projects in the emirate into an authorised escrow structure.
Under the recently promulgated Law No. 8, property developers in Dubai must place project receivables in escrow, or trust, until predetermined development milestones are achieved. These escrow accounts are regulated by the newly created Real Estate Regulatory Agency (RERA), a government entity operating under the umbrella of the Dubai Land Department.
Adel Al Shirawi, Chief Executive Officer of Tamweel, said: "This agreement with the Dubai Land Department represents a significant vote of confidence in the professionalism and experience of Tamweel. Over the past three and a half years, we have worked closely with developers on projects of various scale and designed for a variety of end users. During this period, we have established transparent and efficient processes for project approvals that are similar in nature to current escrow account procedures, enabling us to easily integrate these procedures into our system." He continued: "The decision by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to establish an escrow framework for property developers will greatly enhance the confidence of investors and end users in the long-term stability of the real estate sector in Dubai. Further, this process will mitigate the risk of delivery delays, along with any corresponding charges to investors.
Tamweel is proud to be a pioneer in this area, having already implemented a system that guarantees that any charges related to delivery delays are not passed along to end users, as emphasised by the new escrow law." He concluded: "By encouraging developers to place investors' assets in trust until the completion and delivery of new projects, this landmark legislation will contribute to even stronger ratings of the emirate's real estate sector by international ratings agencies. This will make for enhanced confidence in the sector, which will have knock-on benefits for the Dubai economy as a whole." Sultan Butti Bin Mejren, Director General of Dubai Land Department, said: "We are pleased that Tamweel has become a trust account agent. There is no doubt that the company is capable of performing this important role.
It has built solid relationships with both developers and the Land Department, and it shares with us the common goal of serving the real estate market while strengthening the trust of clients and investors." Marwan Bin Ghalita, Chief Executive Officer of RERA, said: "By approving a trust manager for one of the leading institutes in the market, we are ensuring that the Dubai real estate market continues to grow and provide deeper levels of confidence and security to investors in all the emirate's projects." He added: "Tamweel is an important stakeholder in our company, since it plays a very strong role in real estate finance. Through our agreement today, we will work with Tamweel towards establishing a solid date for all developing projects." Source
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