Dubai’s Real Estate Regulatory Agency has only 5 Billion dirhams ($1.36 billion) remaining out of 7 billion dirhams originally deposited in an escrow account it manages on behalf of buyers of yet-to-be-built properties, Arabian Business reported, citing the head of the regulatory body
RERA, which oversees the account and disburses money to developers during construction, has barred payments except those directed to contractors to pay for construction, the Dubai-based magazine said, citing RERA chief Marwan Bin Ghalita.
Since the start of the crisis, RERA stopped allowing payments to developers for advertising, land purchase or other uses that were originally allowed. Dubai first made the escrow account a requirement for developers in 2007, the magazine said.
An escrow account is one that is managed by an independent trusted third party, which receives and disburses money as required contractually.