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Escrow accounts in Dubai: how off-plan buyers' money is protected

In Dubai, payments for an apartment under construction do not go to the developer directly: they go into an escrow account at a bank and are released in stages as the building rises. Here is how it works and what to check.

What an escrow account is

It is a separate bank account for the project into which buyers make their payments. The money is not freely available to the developer: the bank releases it only for building that project and only after the work is certified. The law protects buyers from money being diverted to other projects.

How the developer gets paid

The developer reports construction progress, the project's consulting engineer certifies the completion percentage, and the bank then releases the matching share of funds. Part of the money is retained until completion and handover. That is why the completion percentage in the DLD registry is directly linked to how much the developer has already received.

What happens if a project is cancelled

If a project never starts or is halted and RERA cancels it, the funds in the escrow account are returned to buyers through the bank. This is one of the main differences between Dubai and markets without such protection — but refunds can take time, so checking before you buy still matters.

How to check escrow before buying

Ask the developer for the escrow account number and bank, and check them against the DLD registry. Pay only into the project's escrow account — never into personal or intermediary accounts. Make sure the project is registered with the DLD and has RERA approval to sell.

Escrow and the payment plan

Payment-plan instalments (for example 10% on booking and then by construction milestones) also go into escrow. Post-handover payments after completion usually go to the developer directly, so spell them out carefully in the contract.

How PromptEstates helps

PromptEstates project cards show the escrow bank from the DLD registry and the completion percentage, so you can see straight away whether your payments are protected.

Frequently asked questions

Can I pay the developer directly?

Not for off-plan: by law, payments go into the project's escrow account. If you are asked to pay into any other account, that is a serious reason to stop.

Where can I see a project's escrow bank?

In the contract and in the Dubai Land Department project registry (data.dubai or DLD Open Data).

Does escrow protect against handover delays?

It protects the money, not the timeline. Look for delay compensation in the contract.

Sources: Dubai Land Department

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