RAKIA RERA to oversee strict implementation of emirate's escrow account law for RAKIA-supervised freehold projects

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RAKIA RERA to oversee strict implementation of emirate's escrow account law for RAKIA-supervised freehold projects

29 Jun 2009

RAKIA intensifies efforts to safeguard investments and protect the interest of RAK's real estate investors

Ras Al Khaimah Investment Authority (RAKIA), the government body responsible for the socioeconomic growth of the emirate, has revealed that the recent establishment of RAKIA Real Estate Regulatory Agency (RERA) by an Emiri Decree has created a new layer of protection for real estate investors in Ras Al Khaimah, as the Agency will oversee the implementation of the escrow account law for freehold projects under RAKIA.

Several property developers have already registered their projects with RAKIA RERA, which now monitors RAKIA-supervised real estate developments with a collective value of AED 6 billion. Developers may only register with RAKIA RERA when the project's concept design has been approved, which will allow them to open an escrow account and start selling properties. RAKIA RERA will also oversee the proper conduct of construction by sending out a team of engineers to inspect projects and make sure that the emirate's construction policy and the key points in the contract are strictly followed.

Eng. Yahia Kambris, General Manager, RAKIA RERA, said: "The escrow account has been implemented to prevent mishandling of construction funds and ensure that investors' money is spent according to the master plan of the project. In this regard, RAKIA RERA has been established to strictly implement the emirate's escrow account law for projects under RAKIA's supervision. The establishment of the new real estate watchdog is an important step in our efforts to safeguard and protect the interest of investors and reinforce the reputation of Ras Al Khaimah as an attractive and practical investment destination in the region."

Among the developers that have registered with RAKIA RERA include Select Group, the developer of Pacific; Manazil Real Estate, which is developing Marbella Bay; Pure Real Estate, developer of Blue Mirage; Stallion Properties, which is developing Santorini; and e-myproperty, developer of Bab Al Badr. Yes Properties, developer of The Quay, is now completing the registration process and will soon open an escrow account.

Several banks, including Badr Al Islami-Mashreq, Bank of Baroda, Commercial Bank of Dubai, Abu Dhabi Commercial Bank and Dubai Islamic Bank, have also signed an agreement with RERA to offer escrow accounts.

Since its establishment in 2005, RAKIA has become one of the pillars of the emirate's economic progress with groundbreaking investment initiatives within the emirate and across international markets. RAKIA plays an important role in nurturing the emirate's investment landscape as it has been mandated to manage Ras Al Khaimah's Industrial Zone and Free Zone in Al Hamra, and the Industrial Park in Al Ghail.

Source: Cityscape Intelligence