July 23, 2024

Aafaq Islamic Finance PSC Partners with Dubai Land Department to Oversee Real Estate Escrow Accounts

 Aafaq Islamic Finance PSC Partners with Dubai Land Department to Oversee Real Estate Escrow Accounts

Dubai, UAE – 8 July 2024

Aafaq Islamic Finance PSC has entered into a strategic partnership with the Dubai Land Department (DLD) through the signing of a Memorandum of Understanding (MoU). This agreement designates Aafaq as an authorized financial institution to provide escrow services, joining a select group of accredited account trustees managing off-plan project funds for real estate developers in Dubai. This collaboration aims to support the UAE real estate market’s growth amid rising demand for homes.

These specialized escrow accounts are designed for real estate projects, holding funds collected from off-plan investors or project financiers. They ensure a smooth construction process and protect investors’ interests, thereby increasing trust in the real estate sector.

Mr. Hisham Hammoud, CEO of Aafaq Islamic Finance, expressed his excitement about the partnership: “This strategic alliance with the Dubai Land Department marks a significant milestone in our efforts to enhance the security of real estate investments in Dubai. By introducing a dedicated escrow service for developers, we are not only adhering to best financial practices but also enhancing transparency and trust in Dubai’s property market.”

Saif Juma Al Suwaidi, Head of the Real Estate Licensing and Enablement Department, added, “Partnering with Aafaq Islamic Finance underscores our commitment to strengthening Dubai’s real estate sector. This agreement aligns with our goals to create a secure and transparent property market, encouraging growth and innovation. We are dedicated to providing advanced solutions that meet the needs of developers and investors, ensuring a thriving economic environment for real estate in Dubai.”

Real estate escrow services are essential for safeguarding consumer funds invested in off-plan projects. They ensure that these funds are protected and can be smoothly returned in the event of a project’s non-completion. The presence of an escrow account trustee adds an extra layer of security, guaranteeing that the allocated funds are exclusively used by the developer for construction purposes. This dual protection mechanism enhances consumer confidence and promotes transparency and accountability in the real estate development process.

This collaboration between Aafaq Islamic Finance and the Dubai Land Department supports Dubai’s vision of becoming a leading global real estate hub. It highlights the commitment of both parties to implementing robust and innovative financial solutions that meet the needs of the modern real estate market.