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BOB signs escrow account agreement

DUBAI — Bank of Baroda yesterday announced that its had entered into an Escrow Account Agreement with Dubai Land Department.

The agreement was signed at the Dubai Land Department office by Sultan Butti bin Mejren, Director General of Dubai Land Department, and Ashok K. Gupta, Chief Executive Officer of Bank of Baroda in the presence of officials of Dubai Land Department and the bank.

Through this agreement, Bank of Baroda is authorised as an approved bank for opening and managing escrow account of property developers registered with the Dubai Land Department, said Gupta.

"With this Bank of Baroda has become one of the few banks in the UAE to provide escrow account services to the builders," he said.

Sultan Butti said Dubai Land Department is proactively taking steps for smooth implementation of the new real estate legislation to ensure the safety of the investors and boost their confidence in this sector of UAE.

Gupta said the bank is supportive of the UAE Government’s initiatives for significantly increasing confidence of global investors in the Dubai Property market. He also mentioned that this kind of arrangement is probably unique and not seen elsewhere in the world.

Under the escrow law, property developers in Dubai must place the project funds in a trust account with a bank which will release the funds when different stages of construction are achieved.