DLD grants Escrow account accreditation to NIB

Noor Islamic Bank, a subsidiary of Noor Investment Group, today announced it has signed an agreement with the Dubai Land Department, accrediting it as an approved bank to offer escrow account services for property developers in Dubai.

The agreement, signed between Sultan Butti Bin Majrin, Director General of Dubai Land Department, and Hussain Al Qemzi, Group CEO, Noor Islamic Bank, is in compliance with the newly established Law Number 8 of 2007 concerning Guarantee Accounts of Real Estate Developers in Dubai.

Issued by His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, the law mandates property developers to deposit all project sales proceeds in escrow accounts until the completion of the individual projects.

"The accreditation is a significant step for Noor Islamic Bank, ahead of the official launch of our operations in January 2008. As a contemporary Islamic bank, we are committed to meeting the needs of our customers by offering high quality services, in line with market regulations," Hussain Al Qemzi said.

"The escrow account regulation aims to protect buyers' interests and is playing a vital role in reinforcing public confidence in Dubai's freehold property market. Founded on strong principles of trust and confidence, it is only natural for Noor Islamic Bank to service escrow accounts," he added.

An escrow account essentially is a safekeeping account for buyers of off-plan units from developers and making instalment payments during the course of construction of the project until completion and delivery of the unit to the buyer. Developers will need to open separate escrow accounts for each project.

All proceeds into the escrow account will be protected for the buyer as payments will be released by Noor as an escrow agent upon fulfilment of specific conditions by the developer and as specified by Dubai Land Department. Noor Islamic Bank's escrow account services will be fully Shariah-compliant and will cover range of value added services to the property developers at competitive rates.

The UAE property market opened up to expatriate ownership in 2002. Since then more than 15,000 families have moved into freehold homes.

When operational, Noor Islamic Bank will be a full service Shariah-compliant bank, with an emphasis on quality and personalised service. It will offer total relationship management, providing customised solutions for retail and corporate customers, as well as small and medium enterprises.

Noor Islamic Bank has started accepting applications from property developers for its escrow account services. (WAM)