Escrow account in Dubai: what it is and how it works

Quick answer

An escrow account is the bank account of each off-plan project where all buyer payments go. It is required by Dubai Law No. 8 of 2007 and supervised by RERA. The bank only releases money to the developer as construction progresses and holds 5% for one year after completion. You can see the account number and construction progress in the Dubai REST app.

How an escrow account works

Every project sold off-plan in Dubai has its own escrow account at an approved bank. The developer must open it before selling, and every instalment buyers pay goes there, not to the company’s own account.

The bank releases the money to the developer in stages, as construction progress is certified. So what you pay goes into building your property.

What Law No. 8 of 2007 says

Dubai Law No. 8 of 2007 governs these accounts and RERA oversees them. The points that matter to you as a buyer:

All off-plan buyer payments go into the project’s escrow account.
The bank releases funds in line with construction progress.
When the project is complete, the bank holds 5% for one year to cover defects.
As an investor, you are entitled to know the construction percentage before paying a milestone.

How to check your project’s escrow account

It takes a few minutes from any country. In the Dubai REST app or on the DLD website you look up the project and see its escrow account number, the construction percentage and progress photos.

Before your first transfer, compare that number with the one on your payment letter or SPA. If they match, you know where your money is going. The other checks are in the guide to checking an off-plan project is safe.

What happens to your money if a project is cancelled

The law covers this too. If RERA cancels a project, the escrow account passes to the DLD’s liquidation department, which asks the developer to refund buyers within 60 days. If work never starts for reasons beyond the developer’s control, it must refund everything paid.

It is a protection that does not depend on the contract you sign.

Paying into escrow from abroad

Instalments are paid by international transfer to the escrow account shown on your payment letter. From the UK or the US you send it from your usual bank. Use the reference the developer gives you so the payment is matched to your unit.

Keep every receipt. You will need them for Oqood, for your tax return at home and, when you sell, to prove what you paid. Payment options are in the payment methods guide.

Frequently asked questions

What is an escrow account in Dubai?

The bank account of each off-plan project where all buyer payments go. The bank only releases money to the developer as construction progresses.

Is an escrow account compulsory?

Yes. Law No. 8 of 2007 requires every developer selling off-plan in Dubai to hold an escrow account per project, supervised by RERA.

Where can I see the escrow account number?

In the Dubai REST app or on the DLD website, on the project page, next to the construction percentage.

How do I check I am paying the right escrow account?

Before every transfer, compare the escrow account number in your payment letter with the one on the project page in Dubai REST.

What is the 5% retention?

When the project is complete, the bank holds 5% of the escrow account for one year to cover construction defects.

What happens if the project is cancelled?

The account passes to the DLD’s liquidation department, which asks the developer to refund buyers within 60 days.

Learn more

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Andy Mederos · Broker and investor in Dubai