CBI Partners with RERA on Re-launching Escrow Account Services
Monday, July 07, 2014
With the increase in the number of construction projects and the high demand witnessed in the real estate market, Commercial Bank International (CBI) announced the re-activation of its escrow (trust) account services by signing a new agreement with the Real Estate Regulatory Agency (RERA).
Pursuant to its new arrangement with RERA, CBI now offers escrow account services to real estate developers who are preparing to launch new construction projects for off-plan sale in Dubai.
Commenting on the event, Ali Sultan Rakkad, CBI’s Head of Wholesale Banking said: “The escrow product reflects CBI’s vision to build partnerships with customers offering innovative added value products and services that meet the growing needs of their businesses today. CBI had a successful track record in operating escrow accounts and we are determined to continue sharing such experience with our clients. We have plans to expand this new product by offering escrow accounts to owners’ associations as well as similar arrangements for corporate industry across the United Arab Emirates. This initiative comes in line with CBI’s new business strategy aiming to re-position the bank for continued sustainable growth over the next five years.”
Essa Saeed Al Mansouri, Director, Real Estate Trust Account Development Department, RERA (the regulatory arm of Dubai Land Department), said: "It is our pleasure to establish a partnership with the CBI through the Real Estate Escrow Account services. This initiative will help us to achieve our goal in supporting the construction boom in Dubai by building the confidence of investors in the city’s real estate sector. CBI will benefit by being able to provide their customers with important real estate services, which will greatly assist their entry into the world of property investment, especially during the current climate where we are witnessing high demand from investors.”
Elaborating on the service re-launch, Issam Dahman, CBI’s Head of Legal in CBI stated: “The escrow accounts have proven to be not only a legal protection for real estate developers but also a safe haven for individual buyers. Under the escrow account regulations, an investor will pay the price of the unit purchased in a project under construction in the escrow account and the escrow agent (bank) will have to ensure that such escrow money is paid to the developer towards the construction of the project.”
“With escrow account services CBI will be offering a one-stop shop for corporate clients who are looking for both project finance and added value services,” concluded Rakkad.
CBI offers Mortgage and real estate finance services. The re-activation of escrow service is meant to boost and compliment its offering.
In 2012, Qatar National Bank (QNB), the leading financial institution and largest bank in the MENA region completed the acquisition of 40% of CBI shares. CBI’s new brand launched in March last year reflects this partnership. With an expanding network across the United Arab Emirates, an enhanced product suite and a renewed customer-centric approach, CBI remains well positioned for future growth.