Escrow Accounts in Dubai: How Off-Plan Payments Are Protected

If you buy off-plan in Dubai, your money should never go straight to the developer. It goes into an escrow account set up for that one project. Here is how that protection works, and how to check it.

What is an escrow account in Dubai?

Under Law No. 8 of 2007 (Dubai Legislation Portal, opens in a new tab), a developer selling units off-plan must open an escrow account in the name of the project with an approved escrow agent, a bank on DLD’s list of approved escrow trustees (Dubai Land Department, opens in a new tab). Payments from buyers, and from any financiers of the project, are deposited there.

How does it protect buyers?

• The money is for construction. Funds in the account are dedicated to building that project.
• Creditors can’t touch it. The law says no attachment may be placed on escrow funds for the benefit of the developer’s creditors.
• Some money is held back after completion. The escrow agent retains 5% of the account until one year after the units are registered in buyers’ names.
• Cancelled projects. If a project is cancelled, the law requires the escrow agent to take the measures needed to protect depositors and see that they are refunded.

How do I check a project’s escrow account?

Use DLD’s project status enquiry (Dubai Land Department, opens in a new tab) (Mashrooi, also in the Dubai REST app) to see a registered project’s completion percentage and escrow details. Then make sure the account in your sale and purchase agreement is that project’s escrow account.

What escrow doesn’t cover

Escrow protects where your money goes. It doesn’t guarantee handover dates, finishes or future value. Read the contract terms on delays, and the rules on your rights as a buyer.