CBD Signs with RERA-RAK as an Escrow Account Agent Bank
Commercial Bank of Dubai (CBD), one of the leading banks in the UAE, has signed with the Real Estate Regulatory Administration in Ras Al Khaimah (RERA-RAK) formally authorizing CBD as an agent bank for opening and managing escrow accounts for property developers registered with RERA-RAK.
The signing ceremony, held in the Municipality of Ras Al Khaimah offices, was attended by Munther Mohammed Bin Shekar, General Manager of the RAK Municipality, Hassan Al Redha, Head of Institutional & Transaction Banking, along with other senior officials from RERA-RAK and the CBD.
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, that was issued to adopt the 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, Munther Mohammed Bin Shekar, General Manager of the RAK Municipality confirmed that the application of the regulating law of the real estate market represents an embodiment of the interest of the Real Estate Regulatory Administration in Ras Al Khaimah to regulate the real estate sector in accordance with the highest international standards and provide a legislative umbrella to protect investors’ and all stakeholders' interests. Moreover, it attracts investments and enhances the economic development and sustainable growth of the emirate.
Speaking on the significance of the agreement, Amol Bahuguna, Head of Payments and Cash Management at CBD, where the escrow management services are housed, said, "We are very proud to be one of the very few Dubai banks to sign an escrow agreement with the Municipality of Ras Al Khaimah, to offer the escrow services to our clients in the emirate of Ras Al Khaimah”. As an escrow account agent bank in Ras Al Khaimah, CBD offers its clients with strategic information critical to the execution of their transactions, where escrow account plays a key role in helping to minimize risk and protect client assets in the process. Amol added further, “CBD, has been offering escrow services in Dubai and Abu Dhabi since their respective escrow laws were announced. We are delighted with this partnership to support the implementation of this law in the emirate of Ras Al Khaimah. The agreement signed today reinforces our involvement with the real estate industry and highlights our support to government-backed initiatives in the UAE.”
CBD offers specialized escrow agency services, for all its clients, which promotes convenient and secure banking to both investors and developers.