The Real Estate Regulatory Authority (RERA), the regulatory arm of the Dubai Land Department, has approved Al Ahli Bank of Kuwait – UAE, as the Curator of the Real Estate Guarantee Account, making it the first Kuwaiti Gulf bank to offer this service.
This service allows real estate developers to collect amounts from buyers of real estate units sold on the map, or from the project financiers, and deposit them in the dedicated and organized escrow account with the bank, which protects the interests of all parties and enhances the confidence of customers by conducting their banking and financial transactions safely, and according to the highest levels of service.
This choice reflects the confidence that ABK has become in the UAE, given its excellence in service, its commitment to the standards and requirements of the regulatory authorities in the UAE, its continuous efforts to improve its competitive position, and the diversification of its offers and products to all customer segments in the UAE market, according to the highest levels of service.
The agreement was signed in the presence of Mohammed Ali Al-Badawi, Acting CEO of the Real Estate Regulatory Authority at the Dubai Land Department, Mohammed Ali Al-Badawi, Executive Vice President and General Manager of Corporate Banking at ABK – UAE, Osama Al Hamdani, along with representatives of the Bank and the Department.
Basic tool
Mohammed Ali Al-Badawi said: “The real estate guarantee account is one of the basic tools that guarantees the rights of investors and enhances confidence in the real estate market in Dubai. It allows organizing the financial operations of real estate projects sold on the map, by depositing the amounts collected from buyers or financiers, in a bank account dedicated to each project, and in a way that ensures the use of these funds only in the stages of construction and development, in accordance with the approved legislation.”
He added: “The Dubai Land Department is committed to strengthening its partnerships with the private sector, because of the role of these partnerships in supporting the sustainability and growth of the real estate sector. Our cooperation with ABK – UAE confirms our keenness to involve financial institutions in the implementation of initiatives that contribute to achieving transparency and improving the quality of services provided. This partnership also translates into our strategy to enhance the real estate investment environment, supporting Dubai’s aspirations and keeping pace with the vision of our wise leadership.”
Great capabilities
For his part, Al-Hamdani said: “The new agreement reflects the success that ABK continues to achieve in the UAE, the great capabilities of its team, and its dedication to providing new products and services that keep pace with changes in the banking industry, and meet the aspirations of individual and corporate customers.”
He explained that the bank’s appointment as the trustee of real estate security services comes after the current year it launched a mortgage loan and the corporate service office in the UAE, in order to improve the level of its service, noting that these steps put ABK among the few mortgage guarantee agents who are committed to supporting the fast-growing real estate sector in the UAE.
Al-Hamdani added that this appointment strengthens ABK’s position as a reliable banking partner in the banking sector within the UAE, in line with Dubai Vision 2030, which aims to provide a transparent and satisfactory work environment for investors.
This agreement comes at a time when ABK UAE continues to enhance its services, activities and products to attract more customers to its ever-growing family.