New Real Estate Regulatory Authority in Ras Al Khaimah, UAE

There is a new property regulatory authority in Ras Al Khaimah – the ‘Ras Al Khaimah Investment Authority (RAKIA) Real Estate Regulatory Agency’ (RERA). This new body will deliver a fresh measure of security and protection to investors of real estate in this beautiful up-and-coming region - its neighbouring emirate Dubai has had monumental success within its property market (prior to the harm of the global economic downturn, although the property market for Dubai Property is now recovering steadily) and has been showered with endlessly increasing interest from international property investors. This has had a really positive knock-on effect on the emergence of Ras Al Khaimah.

The authority will be managing and supervising the implementation of escrow account laws regarding all freehold development projects. The ‘escrow account’ is being applied to stop construction money being misused and to make sure that investors’ money is being spent as intended in the master plan of the particular project. The setting up of this new body of regulators is central to the efforts of the emirate to protect investors in Ras Al Khaimah and to secure and strengthen the area’s spot on the property investment map.

Property developers are only allowed to register with RAKIA RERA once there has been approval of the concept designs of their projects, and only when registered can they then open an escrow account and begin to sell their property units.

A number of developers have already done this; the developer of ‘Pacific’ Select Group, ‘Marbella Bay’ developers Manazil Real Estate, Pure Real Estate who delivered ‘Blue Mirage’, Stallion Properties which is developing ‘Santorini and finally ‘Bab Al Badr’ developer E-myproperty.

Another developer soon to be registered with the authority is Yes Properties, developer of ‘The Quay’. A number of banks, including Commercial Bank of Dubai, Abu Dhabi Commercial Bank and Dubai Islamic Bank, have also signed a written agreement with RERA to offer escrow accounts. The new regulatory body will be overseeing AED6 billion worth of developments.