The Ras Al Khaimah government has announced that it has made escrow account (guarantee accounts) of real estate developments mandatory, via a decree issued on July 3, which will help regulate the UAE emirate's property sector.

A government statement said: "The decree, concerning guarantee accounts of real estate developments in the emirate of Ras Al Khaimah, makes it mandatory that developers wishing to sell off-plan units in real estate development projects must apply to Ras Al Khaimah Investment Authority (Rakia) to open a guarantee account in which amounts paid by buyers towards property purchases or by project financing parties will be deposited."

Licensed realtors in the UAE emirate should register themselves in the 'register of developers' to be prepared by Rakia. To open the guarantee account, the property developers in the UAE should submit a set of documents including the title deed or affection plan of the plot, copy of the contract executed by the master developer and the sub-developer, conceptual designs and layouts approved by Rakia and trade licence of the real estate firm, among others.